Question

Intangible assets Select one: a. should be reported under the heading Property, Plant, and Equipment. b. are not reported on the balance sheet because they lack physical substance. c. should be reported as Current Assets on the balance sheet. d. should be reported as a separate classification on the balance sheet. Previous page

Answer 1

Answer: The correct answer is " d. should be reported as a separate classification on the balance sheet. ".

Explanation: Intangible assets are those non-monetary assets, without physical substance, that will generate future economic benefits controlled by the entity.

In accordance with IFRS, intangible assets must be presented: On the balance sheet as a separate classification within non-current assets, deducted accumulated amortization and accumulated impairment loss. In addition, the notes to the financial statements must be disclosed for each class of intangible assets, distinguishing between those generated internally and those acquired both individually and through business acquisitions.