Question

Under IFRS, intangible assets that may be capitalized include: ________

a) Internally generated goodwill
b) Internally developed brands
c) Overhead costs directly related to development activities
d) Borrowing costs related to research activities

Answer 1

Under IFRS, intangible assets that may be capitalized include internally generated goodwill, internally developed brands, overhead costs directly related to development activities, and borrowing costs related to research activities.

Step-by-step explanation:

Under IFRS, intangible assets that may be capitalized include:

1. Internally generated goodwill: Goodwill refers to the value of a company's reputation, customer relationships, and other intangible assets. If a company internally generates goodwill, it can be capitalized under IFRS.
2. Internally developed brands: Brands that are developed internally by a company can be capitalized as intangible assets under IFRS.
3. Overhead costs directly related to development activities: Overhead costs, such as rent, utilities, and salaries for employees directly involved in development activities, can be capitalized as intangible assets under IFRS.
4. Borrowing costs related to research activities: If a company incurs borrowing costs specifically related to research activities, those costs can be capitalized as intangible assets under IFRS.