{"entries":[{"key":"LX.IAS38.000001","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"PHARMA","tested_point":"RESEARCH_EXPENSED","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"A pharmaceutical laboratory is studying how a new family of molecules works. Because its teams consider the results 'very promising', it may recognise this research expenditure as an asset.","es":""},"explanation":{"fr":"","en":"Approach: first identify the phase of the project. Here the laboratory is trying to understand a mode of action: this is research, and the teams' optimism does not change the nature of the activity. Main trap: believing that results judged promising give the right to capitalise. Rule to remember: no intangible asset is recognised for research; its expenditure is expensed when incurred (IAS 38, para. 54).","es":""},"common_error":{"fr":"","en":"Believing that the likelihood of success is enough to create an asset: in the research phase the standard prohibits any capitalisation.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000002","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"AGRIFOOD","tested_point":"PHASES_UNDISTINGUISHABLE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §52","IAS 38 §53"],"exercise":{"prompt":{"fr":"","en":"An agrifood cooperative is working on a fermentation process. Its teams keep switching between exploratory trials and refinement, so it cannot separate the two phases of the project. It may then treat all the expenditure as development expenditure.","es":""},"explanation":{"fr":"","en":"Approach: ask whether the entity can date the switch from exploration to fine-tuning. Here the teams alternate constantly between the two: the boundary cannot be identified. Main trap: picking the most favourable treatment (development, hence capitalisable) instead of the fallback rule. Rule to remember: if the entity cannot distinguish the two phases of a project, it treats all the expenditure as incurred in the research phase, hence expensed (IAS 38, paras. 52 and 53).","es":""},"common_error":{"fr":"","en":"Reversing the fallback rule: when the boundary between phases is unclear, the standard requires the cautious answer (research), not capitalisation.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000003","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.PAST_EXPENSES","IAS38.INTERNAL_GENERATION.COST"],"dimension":"APPLICATION","format":"TRUE_FALSE","context":"MEDTECH","tested_point":"NO_REINSTATEMENT","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §65","IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"Case data: in year N, a medical device company expensed EUR 220,000 of development on a sensor because it lacked sufficient funding to complete it. In March N+1 it obtains the funding and all six criteria are met. In N+1 it may reverse the EUR 220,000 expensed in N and add it to the cost of the sensor.","es":""},"explanation":{"fr":"","en":"Approach: 1) find the date on which the criteria are first met (March N+1); 2) note that the EUR 220,000 of year N was already expensed; 3) check whether the standard allows a catch-up. Main trap: believing that funding obtained later 'repairs' the past. Rule to remember: cost starts from the date the criteria are first met, and an expenditure already expensed is not reinstated in the cost of an intangible asset (IAS 38, paras. 65 and 71).","es":""},"common_error":{"fr":"","en":"Thinking that later success of the project justifies a 'catch-up' of past expenses.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000004","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"DEV_ALL_CRITERIA_REQUIRED","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"development-rule"},"references":["IAS 38 §57"],"exercise":{"prompt":{"fr":"","en":"A software publisher is developing a new invoicing module. How many of the six demonstrations required for the development phase must it establish to capitalise the expenditure?","es":""},"explanation":{"fr":"","en":"A development asset is recognised if, and only if, the entity demonstrates all six elements: technical feasibility, intention, ability, probable benefits, resources and reliable measurement of expenditure (IAS 38, para. 57). A software publisher demonstrating five of the six criteria therefore cannot capitalise. Rule to remember: all six demonstrations are required together, with no offsetting between them (IAS 38, para. 57).","es":""},"common_error":{"fr":"","en":"Treating the criteria as a set of indicators where strong points offset weak ones.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At least one: technical feasibility.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer keeps a single criterion, technical feasibility, as if it were enough. But the publisher must also demonstrate its intention, its ability, the probable benefits, its resources and the reliable measurement of expenditure (IAS 38, para. 57). A technically ready module with no funding cannot be capitalised. Rule to remember: technical feasibility is one demonstration among six and is not sufficient on its own.","es":""}},{"id":"B","text":{"fr":"","en":"A majority, i.e. four out of six.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer assumes a majority threshold, four criteria out of six, as if strengths could offset weaknesses. The standard provides nothing of the kind: the asset is recognised only if the entity demonstrates all six elements (IAS 38, para. 57). With four demonstrations, the expenditure stays in profit or loss. Rule to remember: the six criteria are cumulative; none can be replaced by the strength of another.","es":""}},{"id":"C","text":{"fr":"","en":"All six, without exception.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"None, if the project budget is approved.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer treats an approved budget as a substitute for the demonstrations. A budget may support the intention or the availability of resources, but it proves neither technical feasibility, nor probable benefits, nor the ability to measure expenditure (IAS 38, para. 57). The module stays in profit or loss until all six elements are established. Rule to remember: an approved budget is one piece of evidence among others and exempts none of the six demonstrations.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000005","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"AUTOMOTIVE","tested_point":"PHASE_CLASSIFICATION","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"understand"},"references":["IAS 38 §56","IAS 38 §59"],"exercise":{"prompt":{"fr":"","en":"A carmaker is working on a new braking system. Which of these activities belongs to the development phase?","es":""},"explanation":{"fr":"","en":"Designing, building and testing prototypes before production is development (IAS 38, para. 59), whereas acquiring new knowledge and comparing alternatives is research (IAS 38, para. 56). Here only the pre-series prototype of the already selected architecture is development. Rule to remember: as long as the solution has not been selected the work is research; building and testing a prototype of the selected solution is development (IAS 38, paras. 56 and 59).","es":""},"common_error":{"fr":"","en":"Classifying any technical activity as development, whereas development starts once a solution has been selected.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Laboratory tests to understand how new friction materials wear.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes technical tests for development because they happen in a laboratory on a concrete product. But understanding how new materials wear is acquiring new knowledge: an example of research (IAS 38, para. 56). Nothing has yet been built or tested as a selected solution. Rule to remember: a test used to understand or discover remains research, hence expensed (IAS 38, paras. 54 and 56).","es":""}},{"id":"B","text":{"fr":"","en":"Comparing three possible architectures for the system.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer sees development in the comparison of three architectures. But searching for, formulating and evaluating alternatives before the final selection is research activity (IAS 38, para. 56). Development concerns the selected alternative, which is designed, built and tested (IAS 38, para. 59). Rule to remember: comparing alternatives comes before the choice and is research.","es":""}},{"id":"C","text":{"fr":"","en":"Building and track-testing a pre-series prototype of the selected architecture.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Monitoring academic publications on tribology.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer classifies scientific monitoring as development because it seems useful to the project. Reading university publications is acquiring knowledge: research (IAS 38, para. 56). Development means designing, building and testing a solution (IAS 38, para. 59), which monitoring does not do. Rule to remember: collecting or acquiring knowledge is research, even when it feeds a development project.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000006","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA","IAS38.INTERNAL_GENERATION.COST"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GAMING","tested_point":"CAPITALISATION_START_DATE","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"timeline-example"},"references":["IAS 38 §57","IAS 38 §65"],"exercise":{"prompt":{"fr":"","en":"Case data, video game studio: 1 January, launch of a new game; 31 March, a playable demo proves the technical engine works; 30 June, the studio signs a funding agreement with a publisher and its board formally decides to complete and market the game. Online wishlists show demand, and costs have been tracked by project since January. From which date is development expenditure capitalised?","es":""},"explanation":{"fr":"","en":"Approach: 1) technical feasibility is established on 31 March (playable demo); 2) the formal intention and the resources (publisher's funding) are only demonstrated on 30 June; 3) cost starts from the date the criteria are first met (IAS 38, paras. 57 and 65). Effect on the financial statements: expenditure from January to June stays in profit or loss, and expenditure after 30 June enters the cost of the asset. Rule to remember: capitalisation begins on the date the last of the six criteria is demonstrated, not on the date of the most visible milestone.","es":""},"common_error":{"fr":"","en":"Using the date of the most visible technical milestone instead of the date the last criterion is demonstrated.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"1 January, start of the project.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks the launch of the project. But the start of a project is not a criterion: on 1 January none of the six demonstrations is established and the expenditure is research or development not yet eligible. Cost comprises the expenditure incurred from the date the criteria are first met (IAS 38, para. 65). Rule to remember: capitalisation starts not at the start date but on the date the six demonstrations are all in place.","es":""}},{"id":"B","text":{"fr":"","en":"31 March, date of the playable demo.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks the date of the playable demo. The demo establishes technical feasibility, but the formal intention to complete the game and the availability of resources are only demonstrated on 30 June, with the board decision and the funding agreement (IAS 38, para. 57). Expenditure from April to June therefore stays in profit or loss. Rule to remember: a single milestone, however important, does not trigger capitalisation while the other demonstrations are missing.","es":""}},{"id":"C","text":{"fr":"","en":"30 June, when all demonstrations are met.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"On the commercial release of the game.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer waits for the commercial release to capitalise. That is too late: once the criteria are met, subsequent expenditure enters the cost of the asset (IAS 38, para. 65). Waiting for the release would leave in profit or loss expenditure from 30 June to the release that already meets all six demonstrations. Rule to remember: capitalisation follows the date the criteria are met, not the date of going into service or of marketing (IAS 38, paras. 57 and 65).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000007","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"MEDTECH","tested_point":"DIRECTLY_ATTRIBUTABLE_COSTS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §66","IAS 38 §67","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"A medical technology company is developing a connected insulin pump. All six criteria have been met since 1 February (case data). Which of the following costs incurred after that date are part of the cost of the asset?","es":""},"explanation":{"fr":"","en":"Cost groups directly attributable costs: employee benefits from the project, fees to register a legal right, amortisation of licences used (IAS 38, para. 66). Overheads that are not directly attributable and training are excluded (IAS 38, para. 67); advertising is an expense (IAS 38, para. 69).","es":""},"common_error":{"fr":"","en":"Including any expenditure 'related to the project' in a broad sense, including commercial launch preparation.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Salaries and related costs of the engineers assigned to the project.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Fees paid to register the patent protecting the pump.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Amortisation of a simulation software licence used to design the pump.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A share of executive management costs, allocated in proportion to revenue.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer includes a share of head-office costs allocated in proportion to revenue. That allocation key does not measure what is needed to create the asset: general overheads that are not directly attributable are excluded from cost (IAS 38, para. 67). Costs directly attributable to creating the pump are included (IAS 38, para. 66). Rule to remember: a share of general overheads does not enter the cost of an internally generated asset.","es":""}},{"id":"E","text":{"fr":"","en":"Training the sales staff who will present the pump to hospitals.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer includes the sales staff training because it prepares the launch. Staff training does not serve to create the pump: it is excluded from cost (IAS 38, para. 67) and, as expenditure incurred for future benefits with no recognisable asset, it is an expense (IAS 38, para. 69). Rule to remember: what prepares commercial operations is not a cost of creating the asset.","es":""}},{"id":"F","text":{"fr":"","en":"A communication campaign announcing the future launch.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer includes a communication campaign because it announces the product. Advertising and promotion are expenditure incurred for future benefits that creates no recognisable asset: they are expensed as soon as the entity receives the service (IAS 38, para. 69). They do not help to create the pump. Rule to remember: advertising and promotion are expenses, even when they accompany a capitalised project.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000008","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"PHARMA","tested_point":"DEV_SIX_CRITERIA","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"development-rule"},"references":["IAS 38 §57"],"exercise":{"prompt":{"fr":"","en":"A pharmaceutical laboratory wonders whether the development of a new dosage form can be capitalised. Which of the following are among the demonstrations required by IAS 38?","es":""},"explanation":{"fr":"","en":"The six demonstrations are: technical feasibility, intention to complete and use or sell, ability to use or sell, how probable future economic benefits will be generated, adequate resources, reliable measurement of expenditure (IAS 38, para. 57). A patent, certainty of profit and sales are not among them.","es":""},"common_error":{"fr":"","en":"Confusing 'probable benefits' with 'certain profitability', or adding conditions the standard does not require.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The technical feasibility of completing the product.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The availability of adequate technical, financial and other resources to complete it.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The ability to measure the development expenditure reliably.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Having already obtained a patent on the formula.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adds the prior grant of a patent. A patent may help protect the formula, but it is not one of the six demonstrations the entity must make (IAS 38, para. 57): technical feasibility, intention, ability, probable benefits, resources and reliable measurement of expenditure. The laboratory can therefore meet the criteria without a patent. Rule to remember: no extra condition is added to the list of six demonstrations (IAS 38, para. 57).","es":""}},{"id":"E","text":{"fr":"","en":"Certainty that the product will be profitable.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer requires certainty that the product will be profitable. The standard asks the entity to demonstrate how the asset will generate probable future economic benefits, including the existence of a market (IAS 38, para. 57): this is a demonstration of probability, not a guarantee of profitability. Rule to remember: the criterion concerns probable future economic benefits, not certain profitability.","es":""}},{"id":"F","text":{"fr":"","en":"First sales already made with the product.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer requires first sales. But the probable future benefits criterion concerns in particular the existence of a market for the output or for the asset itself (IAS 38, para. 57), which can be demonstrated before any sale. Waiting for sales would push capitalisation back until after development is over. Rule to remember: demonstrating a market does not require sales already made (IAS 38, para. 57).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000009","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"RESEARCH_EXPENSED","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Approach: 1) the sentence describes the phase whose expenditure are not put on the balance sheet: research; 2) its expenditure goes to expenses. Main trap: linking 'development' to 'expenses' by reflex, when development can, under conditions, be capitalised. Rule to remember: no asset is recognised for research; its expenditure is expensed when incurred (IAS 38, para. 54).","es":""},"common_error":{"fr":"","en":"Automatically pairing 'development' with 'expense', missing that only development can, under conditions, be capitalised.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"An entity can never put the output of its {{phase}} phase on its balance sheet: that spending is treated straight away as {{treatment}}.","es":""},"blanks":[{"id":"phase","mode":"CHOICE","choices":[{"id":"RESEARCH","text":{"fr":"","en":"research","es":""}},{"id":"DEVELOPMENT","text":{"fr":"","en":"development","es":""}},{"id":"PRODUCTION","text":{"fr":"","en":"production","es":""}}],"answer":"RESEARCH"},{"id":"treatment","mode":"CHOICE","choices":[{"id":"EXPENSE","text":{"fr":"","en":"an expense","es":""}},{"id":"ASSET","text":{"fr":"","en":"an intangible asset","es":""}},{"id":"INVENTORY","text":{"fr":"","en":"inventory","es":""}}],"answer":"EXPENSE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000010","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST","IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"AGRIFOOD","tested_point":"CAPITALISATION_START_DATE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"numeric-example"},"references":["IAS 38 §65"],"exercise":{"prompt":{"fr":"","en":"Case data: a food manufacturer is developing a range of textured plant proteins. The project costs EUR 40,000 per month from January to December N, all directly attributable (teaching assumption: spending is spread evenly). All six criteria are first met on 1 October N. Complete.","es":""},"explanation":{"fr":"","en":"Approach: 1) the starting date is 1 October N, the first date on which the six criteria are met (IAS 38, para. 65); 2) October to December: 3 × 40,000 = EUR 120,000 capitalised; 3) January to September: 9 × 40,000 = EUR 360,000 expensed. Main trap: capitalising the whole year's EUR 480,000. Rule to remember: cost comprises the expenditure incurred from the date the criteria are first met (IAS 38, para. 65).","es":""},"common_error":{"fr":"","en":"Capitalising the whole year's cost (EUR 480,000) because the project became viable before year-end.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Amount capitalised in N: EUR {{capitalised}}. Amount expensed in N: EUR {{expensed}}.","es":""},"blanks":[{"id":"capitalised","mode":"NUMBER","answer":120000,"tolerance":0},{"id":"expensed","mode":"NUMBER","answer":360000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000011","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES"],"dimension":"APPLICATION","format":"FILL_BLANK","context":"GAMING","tested_point":"PHASES_UNDISTINGUISHABLE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §53"],"exercise":{"prompt":{"fr":"","en":"Case data: a studio is building a procedural scenery generation tool. Throughout the project, developers test ideas and write code in parallel, and time tracking cannot show when exploration stopped. Complete with one word.","es":""},"explanation":{"fr":"","en":"Approach: 1) time tracking does not allow the end of exploration to be dated, so the two phases cannot be distinguished; 2) the fallback rule applies: everything is research. Main trap: arbitrarily splitting the project (for example 50/50) in order to capitalise part of it. Rule to remember: if the entity cannot distinguish the research and development phases, all expenditure on the project is treated as research, hence expensed (IAS 38, para. 53).","es":""},"common_error":{"fr":"","en":"Splitting the project arbitrarily (for example 50/50) between research and development to capitalise part of it.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"All the project expenditure is treated as {{phase}} expenditure.","es":""},"blanks":[{"id":"phase","mode":"TEXT","accepted":{"fr":["recherche"],"en":["research"],"es":["investigación","investigacion"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000012","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA"],"dimension":"DOCUMENTATION","format":"MATCHING","context":"AUTOMOTIVE","tested_point":"DEV_SIX_CRITERIA","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"documentation"},"references":["IAS 38 §57","IAS 38 §61"],"exercise":{"prompt":{"fr":"","en":"An automotive supplier is building the file supporting the capitalisation of the development of an adaptive lighting module. Match each demonstration listed below with the document that best supports it.","es":""},"explanation":{"fr":"","en":"Approach: for each demonstration, look for the dated, verifiable document that proves it. Endurance tests support feasibility; the board minutes, the intention; the nomination letters from carmakers, the market; the business plan with a bank's letter, the resources (IAS 38, para. 61); the project cost records, reliable measurement. The press release proves no criterion. Professional judgement: the choice of documents is a matter of judgement and must be documented by the entity. Rule to remember: each of the six demonstrations (IAS 38, para. 57) rests on evidence of its own.","es":""},"common_error":{"fr":"","en":"Relying on communication material rather than dated, verifiable evidence.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Technical feasibility","es":""}},{"id":"L2","text":{"fr":"","en":"Intention to complete and sell","es":""}},{"id":"L3","text":{"fr":"","en":"Probable future economic benefits","es":""}},{"id":"L4","text":{"fr":"","en":"Adequate resources","es":""}},{"id":"L5","text":{"fr":"","en":"Reliable measurement of expenditure","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Prototype approval report after endurance testing","es":""}},{"id":"R2","text":{"fr":"","en":"Board minutes deciding on industrialisation and marketing","es":""}},{"id":"R3","text":{"fr":"","en":"Nomination letters from two carmakers for the future module","es":""}},{"id":"R4","text":{"fr":"","en":"Business plan and a letter from a bank willing to fund that plan","es":""}},{"id":"R5","text":{"fr":"","en":"Time and cost reports by project from management control","es":""}},{"id":"R6","text":{"fr":"","en":"Press release praising the innovation","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"},{"left":"L5","right":"R5"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000013","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST"],"dimension":"RECOGNITION","format":"MATCHING","context":"AEROSPACE","tested_point":"EXCLUDED_COSTS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"An aerospace subcontractor is developing a manufacturing process for composite panels; the six criteria are met (case data). Match each expenditure incurred after that date with the correct treatment and reason.","es":""},"explanation":{"fr":"","en":"Approach: for each expenditure, ask whether it is directly attributable to creating the asset. Materials consumed, engineers' salaries and the licence amortisation are (IAS 38, para. 66). A batch redone after an identified error is an inefficiency, the share of HR department costs a general overhead that is not directly attributable, and operator training is training: three exclusions (IAS 38, para. 67). Main trap: including a cost because it was incurred 'for the project'. Rule to remember: directly attributable costs enter cost; inefficiencies, overheads and training are excluded (IAS 38, paras. 66 and 67).","es":""},"common_error":{"fr":"","en":"Including the cost of a failed batch on the grounds that it was incurred 'for the project'.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Fibres and resins consumed for test panels","es":""}},{"id":"L2","text":{"fr":"","en":"Salaries of process engineers assigned to the project","es":""}},{"id":"L3","text":{"fr":"","en":"Amortisation of a simulation licence used for the process","es":""}},{"id":"L4","text":{"fr":"","en":"Test batch redone after an identified setting error","es":""}},{"id":"L5","text":{"fr":"","en":"Share of the human resources department costs","es":""}},{"id":"L6","text":{"fr":"","en":"Training of the operators who will use the process","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Included: materials and services consumed","es":""}},{"id":"R2","text":{"fr":"","en":"Included: employee benefits arising from creating the asset","es":""}},{"id":"R3","text":{"fr":"","en":"Included: amortisation of a licence used to create the asset","es":""}},{"id":"R4","text":{"fr":"","en":"Excluded: identified inefficiency","es":""}},{"id":"R5","text":{"fr":"","en":"Excluded: overheads not directly attributable","es":""}},{"id":"R6","text":{"fr":"","en":"Excluded: staff training","es":""}},{"id":"R7","text":{"fr":"","en":"Included: costs of marketing the process","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"},{"left":"L5","right":"R5"},{"left":"L6","right":"R6"}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000014","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES","IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"ELECTRONICS","tested_point":"PHASE_CLASSIFICATION","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"understand"},"references":["IAS 38 §56","IAS 38 §59","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"A consumer electronics maker is preparing a foldable smartphone. Classify each activity.","es":""},"explanation":{"fr":"","en":"Approach: 1) acquiring knowledge, evaluating applications and formulating alternatives (I1, I2, I3) are research (IAS 38, para. 56); 2) moulds using new technology, a pilot line of non-viable size and prototypes of the selected model (I4, I5, I6) are development (IAS 38, para. 59); 3) advertising and training (I7, I8) are expenses unrelated to creating the asset (IAS 38, para. 69). Main trap: classifying the comparison of designs as development. Rule to remember: as long as the alternative has not been selected, the work is research (IAS 38, paras. 56 and 59).","es":""},"common_error":{"fr":"","en":"Classifying the comparison of several designs as development: until the alternative is selected, it is still research.","es":""},"format":"CLASSIFICATION","categories":[{"id":"RESEARCH","text":{"fr":"","en":"Research phase","es":""}},{"id":"DEVELOPMENT","text":{"fr":"","en":"Development phase","es":""}},{"id":"NOT_RD","text":{"fr":"","en":"Neither research nor development","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Basic tests to understand the properties of a new flexible glass","es":""},"category":"RESEARCH"},{"id":"I2","text":{"fr":"","en":"Evaluating possible uses of the lab's findings for a foldable screen","es":""},"category":"RESEARCH"},{"id":"I3","text":{"fr":"","en":"Formulating and comparing several possible hinge designs","es":""},"category":"RESEARCH"},{"id":"I4","text":{"fr":"","en":"Designing moulds that use a new injection technology","es":""},"category":"DEVELOPMENT"},{"id":"I5","text":{"fr":"","en":"Running a pilot line not of a size that is viable for commercial production","es":""},"category":"DEVELOPMENT"},{"id":"I6","text":{"fr":"","en":"Building and testing pre-series prototypes of the selected model","es":""},"category":"DEVELOPMENT"},{"id":"I7","text":{"fr":"","en":"Launch advertising campaign","es":""},"category":"NOT_RD"},{"id":"I8","text":{"fr":"","en":"Training in-store sales staff on the new phone","es":""},"category":"NOT_RD"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000015","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST","IAS38.EXPENSE.PAST_EXPENSES"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"GAMING","tested_point":"DIRECTLY_ATTRIBUTABLE_COSTS","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §65","IAS 38 §66","IAS 38 §67","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"Case data: for an online game, a studio meets all six criteria on 1 May N. Classify each expenditure of year N.","es":""},"explanation":{"fr":"","en":"Approach: 1) the criteria date is 1 May: March salaries (I4) precede it and stay in profit or loss (IAS 38, para. 65); 2) after that date, staff, services consumed and amortisation of the licence used are directly attributable (I1, I2, I3; IAS 38, para. 66); 3) two weeks redone after an identified error (I5) and a share of support services (I6) are excluded (IAS 38, para. 67); 4) the trailer (I7) is an expense (IAS 38, para. 69). Effect on the financial statements: I1 to I3 increase the asset under development, I4 to I7 reduce profit. Rule to remember: cost comprises the directly attributable expenditure incurred after the criteria date (IAS 38, paras. 65 and 66).","es":""},"common_error":{"fr":"","en":"Classifying by nature ('programmers' salaries = asset') without checking the criteria date or whether the expenditure is directly attributable, for example by capitalising March salaries or the weeks redone.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CAPITALISE","text":{"fr":"","en":"Cost of the asset","es":""}},{"id":"EXPENSE","text":{"fr":"","en":"Expense for the year","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"June salaries of the programmers assigned to the game","es":""},"category":"CAPITALISE"},{"id":"I2","text":{"fr":"","en":"Cloud servers consumed in July to build and test the game","es":""},"category":"CAPITALISE"},{"id":"I3","text":{"fr":"","en":"Amortisation, May to December, of a licensed physics engine used for the game","es":""},"category":"CAPITALISE"},{"id":"I4","text":{"fr":"","en":"March salaries of the same programmers","es":""},"category":"EXPENSE"},{"id":"I5","text":{"fr":"","en":"Two weeks of work redone after builds were lost through an identified configuration error","es":""},"category":"EXPENSE"},{"id":"I6","text":{"fr":"","en":"Share of the studio's accounting and legal departments","es":""},"category":"EXPENSE"},{"id":"I7","text":{"fr":"","en":"Trailer and influencer campaign","es":""},"category":"EXPENSE"}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000016","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES","IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA","IAS38.INTERNAL_GENERATION.COST","IAS38.EXPENSE.PAST_EXPENSES"],"dimension":"DOCUMENTATION","format":"ORDERING","context":"GENERIC","tested_point":"RD_ANALYSIS_SEQUENCE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"how"},"references":["IAS 38 §53","IAS 38 §54","IAS 38 §57","IAS 38 §65","IAS 38 §66","IAS 38 §67","IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"You are preparing the workpaper for an internal R&D project. Put the steps of the analysis in a logical order.","es":""},"explanation":{"fr":"","en":"Approach: this order is that of a working paper (teaching assumption), not a procedure imposed by the standard, but it follows its logic. 1) Distinguish research from development, otherwise treat everything as research (IAS 38, para. 53); 2) expense the research (IAS 38, para. 54); 3) assess the six demonstrations (IAS 38, para. 57); 4) date when they are first all met; 5) accumulate the directly attributable costs from that date, excluding excluded costs (IAS 38, paras. 65 to 67); 6) check that no past expense is reinstated (IAS 38, para. 71). Main trap: adding up costs before fixing the starting date. Rule to remember: cost depends first on the criteria date, then on the amounts (IAS 38, para. 65).","es":""},"common_error":{"fr":"","en":"Starting by adding up project costs before having set the capitalisation start date.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Identify the project and document the boundary between research and development (failing that, treat everything as research)","es":""}},{"id":"S2","text":{"fr":"","en":"Isolate the development phase expenditure, the only expenditure that may be capitalised (research is expensed)","es":""}},{"id":"S3","text":{"fr":"","en":"Assess each of the six demonstrations for development, backed by dated evidence","es":""}},{"id":"S4","text":{"fr":"","en":"Set the date on which all six demonstrations are first met","es":""}},{"id":"S5","text":{"fr":"","en":"Accumulate directly attributable costs incurred since that date, leaving out excluded costs","es":""}},{"id":"S6","text":{"fr":"","en":"Check that no expenditure already expensed has been added to the cost","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000017","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA","IAS38.INTERNAL_GENERATION.RESEARCH","IAS38.INTERNAL_GENERATION.COST"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"MEDTECH","tested_point":"DEV_ALL_CRITERIA_REQUIRED","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"pitfalls"},"references":["IAS 38 §54","IAS 38 §57","IAS 38 §65","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Here is the CFO's memo of a medical device company on a portable ultrasound project (case data; the demonstrations not mentioned are established by September at the latest). Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Approach: test each statement against the matching rule. S2 is wrong: research is expensed whatever the outcome of the project (IAS 38, para. 54). S3 is wrong too: the six demonstrations are cumulative, with no main criterion, and capitalisation starts on the date they are all met (IAS 38, paras. 57 and 65). S5 is wrong: a share of head-office costs is not directly attributable (IAS 38, para. 67). S1, S4 and S6 are correct. Main trap: accepting management reasoning that ranks the criteria in order to bring the date forward. Effect on the financial statements: a date that is too early overstates the asset and the profit for the year. Rule to remember: cost starts from the date the six criteria are first met (IAS 38, para. 65).","es":""},"common_error":{"fr":"","en":"Accepting management reasoning that ranks the criteria in order to bring the capitalisation date forward.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Time tracking allows research (January to April) to be separated from development (from May).","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The EUR 180,000 of research from January to April will be capitalised, since the project eventually succeeded.","es":""},"erroneous":true,"correction":{"fr":"","en":"Research is expensed when incurred, whatever the outcome of the project (IAS 38, para. 54).","es":""}},{"id":"S3","text":{"fr":"","en":"The prototype was validated in June, but the board only approved funding and marketing in September; we use June as the start date because technical feasibility is the main criterion.","es":""},"erroneous":true,"correction":{"fr":"","en":"There is no main criterion: the six demonstrations are cumulative. As intention and resources are only established in September, capitalisation starts in September (IAS 38, paras. 57 and 65).","es":""}},{"id":"S4","text":{"fr":"","en":"Salaries of engineers assigned to the project, incurred from the date all six demonstrations are met, are part of the cost.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"We will add to the cost a share of head-office costs (executive management, accounting) in proportion to revenue.","es":""},"erroneous":true,"correction":{"fr":"","en":"Administrative and general overheads that are not directly attributable are excluded from cost (IAS 38, para. 67).","es":""}},{"id":"S6","text":{"fr":"","en":"Once all six criteria are met, capitalising development expenditure is not optional.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000018","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.PAST_EXPENSES","IAS38.INTERNAL_GENERATION.COST"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AGRIFOOD","tested_point":"NO_REINSTATEMENT","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §65","IAS 38 §67","IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"A dairy manufacturer is developing a plant-based dessert process. Its management accountant presents the cost calculation at 31 December N (case data). Spot the incorrect steps.","es":""},"explanation":{"fr":"","en":"Approach: 1) the EUR 480,000 of N-1 and the EUR 150,000 of January to June N are expensed; 2) cost starts on 1 July N: EUR 420,000 (IAS 38, para. 65); 3) S4 is wrong: an expenditure already expensed is not reinstated in cost (IAS 38, para. 71); 4) S5 is wrong: staff training is excluded (IAS 38, para. 67); 5) S6 wrongly adds 480,000 and 30,000: cost remains EUR 420,000. Main trap: seeing past expenses as an error to correct now that the project is succeeding. Effect on the financial statements: the expenses of N-1 and early N are neither reversed nor transferred to the asset. Rule to remember: cost comprises the expenditure incurred from the criteria date, and a past expense is not reinstated (IAS 38, paras. 65 and 71).","es":""},"common_error":{"fr":"","en":"Seeing the past years' expensing as an 'error' to correct now that the project is succeeding.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The EUR 480,000 spent in N-1 was expensed in the N-1 financial statements because the criteria were not met.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The criteria are first met on 1 July N; the EUR 150,000 from January to June N remains in expense.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Directly attributable costs from July to December N (EUR 420,000) form the cost of the asset.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"As the process is now viable, the EUR 480,000 of N-1 is reversed through opening equity and added to the cost.","es":""},"erroneous":true,"correction":{"fr":"","en":"Expenditure recognised as an expense is never later reinstated in cost; nor is it an error to be corrected (IAS 38, para. 71).","es":""}},{"id":"S5","text":{"fr":"","en":"Training for the operators who will use the process (EUR 30,000) is added.","es":""},"erroneous":true,"correction":{"fr":"","en":"Staff training is excluded from cost (IAS 38, para. 67).","es":""}},{"id":"S6","text":{"fr":"","en":"Cost at 31 December N: 420,000 + 480,000 + 30,000 = EUR 930,000.","es":""},"erroneous":true,"correction":{"fr":"","en":"Cost is limited to the EUR 420,000 incurred from 1 July N (IAS 38, para. 65).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000019","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST","IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA"],"dimension":"CALCULATION","format":"CALCULATION","context":"SOFTWARE","tested_point":"EXCLUDED_COSTS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"numeric-example"},"references":["IAS 38 §65","IAS 38 §66","IAS 38 §67","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"A SaaS publisher is developing a predictive analytics module. All six criteria are first met on 1 April N (case data). Calculate the amounts for year N.","es":""},"explanation":{"fr":"","en":"Approach: 1) cost = directly attributable expenditure from 1 April (IAS 38, paras. 65 and 66): 360,000 + 45,000 + 12,000 = EUR 417,000; 2) expenses = 150,000 (before the criteria) + 30,000 (overheads) + 8,000 (training) (IAS 38, para. 67) + 25,000 (marketing, IAS 38, para. 69) = EUR 213,000; 3) check: 417,000 + 213,000 = EUR 630,000 of expenditure. Trap: capitalising the EUR 480,000 from April to December. Rule to remember: overheads, training and marketing stay expensed even after the criteria date (IAS 38, paras. 67 and 69).","es":""},"common_error":{"fr":"","en":"Capitalising all April to December spending (EUR 480,000) without removing overheads, training and marketing.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Development from January to March N","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"April to December: salaries of the module's developers","es":""},"value":"360000","unit":"EUR"},{"label":{"fr":"","en":"April to December: cloud test environment consumed","es":""},"value":"45000","unit":"EUR"},{"label":{"fr":"","en":"April to December: amortisation of a licence used for the module","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"April to December: share of general administrative costs","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"April to December: staff training on the module","es":""},"value":"8000","unit":"EUR"},{"label":{"fr":"","en":"April to December: pre-launch marketing","es":""},"value":"25000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost capitalised at 31 December N","es":""},"answer":417000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Total project-related expense for the year","es":""},"answer":213000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Cost capitalised at 31 December N","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"April to December: salaries of the module's developers","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"April to December: cloud test environment consumed","es":""},"value":45000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"April to December: amortisation of a licence used for the module","es":""},"value":12000,"unit":"EUR"}],"result":417000,"unit":"EUR"}],"rationale":{"fr":"","en":"overheads, training and marketing stay expensed even after the criteria date (IAS 38, paras. 67 and 69).","es":""},"references":["REF.IAS38.65","REF.IAS38.66","REF.IAS38.67","REF.IAS38.69"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000020","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST","IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA","IAS38.INTERNAL_GENERATION.RESEARCH","IAS38.EXPENSE.PAST_EXPENSES"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"CAPITALISATION_START_DATE","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"numeric-example"},"references":["IAS 38 §54","IAS 38 §65","IAS 38 §66","IAS 38 §67","IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"An automotive supplier is developing a bidirectional charging controller over two years. All six criteria are first met on 1 September N. Case data: at 31 December N+1 the controller is not yet available for use, so no amortisation is to be considered. Calculate.","es":""},"explanation":{"fr":"","en":"Approach: 1) N: research 200,000 + development before 1 September 320,000 = EUR 520,000 expensed (IAS 38, paras. 54 and 65); cost starts at EUR 160,000; 2) N+1: 150,000 + 90,000 + 6,000 = EUR 246,000 added (IAS 38, para. 66), giving EUR 406,000; 3) the batch of boards redone (18,000) and overheads (20,000) make EUR 38,000 of expenses (IAS 38, para. 67); no reinstatement of the EUR 520,000 (IAS 38, para. 71). Trap: adding the EUR 320,000 from May to August. Rule to remember: cost starts from the criteria date and a past expense is not reinstated (IAS 38, paras. 65 and 71).","es":""},"common_error":{"fr":"","en":"Adding in N+1 the EUR 320,000 of development from May to August N, on the grounds that it was already development.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"N, January to April: research","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"N, May to August: development before the criteria date","es":""},"value":"320000","unit":"EUR"},{"label":{"fr":"","en":"N, September to December: directly attributable costs","es":""},"value":"160000","unit":"EUR"},{"label":{"fr":"","en":"N+1: materials and services consumed","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"N+1: project team salaries","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"N+1: patent registration fees","es":""},"value":"6000","unit":"EUR"},{"label":{"fr":"","en":"N+1: batch of boards redone after an identified design error","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"N+1: share of overheads not directly attributable","es":""},"value":"20000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Project expense for year N","es":""},"answer":520000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of the asset at 31 December N","es":""},"answer":160000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Amount added to cost in N+1","es":""},"answer":246000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Cost of the asset at 31 December N+1","es":""},"answer":406000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Project expense for year N+1","es":""},"answer":38000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Amount added to cost in N+1","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"N+1: materials and services consumed","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"N+1: project team salaries","es":""},"value":90000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"N+1: patent registration fees","es":""},"value":6000,"unit":"EUR"}],"result":246000,"unit":"EUR"}],"rationale":{"fr":"","en":"cost starts from the criteria date and a past expense is not reinstated (IAS 38, paras. 65 and 71).","es":""},"references":["REF.IAS38.54","REF.IAS38.65","REF.IAS38.66","REF.IAS38.67","REF.IAS38.71"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000021","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"COSMETICS","tested_point":"RESEARCH_EXPENSED","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"entry"},"references":["IAS 38 §54","IAS 38 §56"],"exercise":{"prompt":{"fr":"","en":"A cosmetics group commissions an external laboratory to study new plant-based skin ingredients, with no product identified yet. It receives the EUR 60,000 invoice, payable in 30 days (case data; teaching assumption: taxes ignored). Record the entry; the credit line is given.","es":""},"explanation":{"fr":"","en":"Approach: 1) studying new plant-based active ingredients with no identified product is acquiring new knowledge: research (IAS 38, para. 56); 2) the expenditure is an expense when incurred (IAS 38, para. 54): debit Research expense EUR 60,000, credit Suppliers EUR 60,000. Main trap: debiting an asset because the service is performed by a third party. Rule to remember: research is an expense, whether carried out in-house or subcontracted (IAS 38, para. 54).","es":""},"common_error":{"fr":"","en":"Debiting an asset account because the work is done by a third party: outsourced or not, research remains an expense.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"RESEARCH_EXPENSE","text":{"fr":"","en":"Research expense","es":""}},{"id":"DEVELOPMENT_ASSET","text":{"fr":"","en":"Capitalised development costs","es":""}},{"id":"SUPPLIERS","text":{"fr":"","en":"Trade payables","es":""}},{"id":"INVENTORY","text":{"fr":"","en":"Raw materials inventory","es":""}}],"lines":[{"id":"L1","account":"RESEARCH_EXPENSE","side":"DEBIT","amount":60000},{"id":"L2","account":"SUPPLIERS","side":"CREDIT","amount":60000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000022","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST","IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MEDTECH","tested_point":"DIRECTLY_ATTRIBUTABLE_COSTS","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"entry"},"references":["IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Case data: a medical technology company is developing a heart monitor; all six criteria have been met since January. March spending: engineering team salaries EUR 200,000 paid from the bank, of which EUR 20,000 relates, per the time sheets, to support on existing products; testing by a laboratory, EUR 40,000 payable; amortisation of a design licence used for the monitor, EUR 9,000; share of head-office costs, EUR 15,000 paid from the bank; staff training on the future monitor, EUR 6,000 paid from the bank. Record the month's summary entry (teaching assumption: a single entry, taxes ignored).","es":""},"explanation":{"fr":"","en":"Approach: 1) debit the asset with the directly attributable costs: salaries of 200,000 − 20,000 of support on other products = 180,000, tests 40,000, licence amortisation 9,000, i.e. EUR 229,000 (IAS 38, para. 66); 2) expense the 20,000 of support, the 15,000 of head-office costs and the 6,000 of training (IAS 38, para. 67); 3) credit bank 221,000 (200,000 + 15,000 + 6,000), suppliers 40,000, accumulated amortisation 9,000. Check: 270,000 on each side. Trap: capitalising all the salaries without using the time records. Effect on the financial statements: EUR 229,000 increases the asset under development and EUR 41,000 reduces profit. Rule to remember: time actually spent on the asset is directly attributable; overheads and training are excluded (IAS 38, paras. 66 and 67).","es":""},"common_error":{"fr":"","en":"Capitalising the team's entire salaries without using the time sheets, or forgetting that amortisation of the licence used is part of the cost.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEVELOPMENT_ASSET","text":{"fr":"","en":"Intangible asset under development","es":""}},{"id":"STAFF_EXPENSE","text":{"fr":"","en":"Staff costs expense","es":""}},{"id":"ADMIN_EXPENSE","text":{"fr":"","en":"General and administrative expense","es":""}},{"id":"TRAINING_EXPENSE","text":{"fr":"","en":"Training expense","es":""}},{"id":"BANK","text":{"fr":"","en":"Bank","es":""}},{"id":"SUPPLIERS","text":{"fr":"","en":"Trade payables","es":""}},{"id":"ACC_AMORT_LICENCE","text":{"fr":"","en":"Accumulated amortisation of the licence","es":""}},{"id":"RESEARCH_EXPENSE","text":{"fr":"","en":"Research expense","es":""}}],"lines":[{"id":"L1","account":"DEVELOPMENT_ASSET","side":"DEBIT","amount":229000},{"id":"L2","account":"STAFF_EXPENSE","side":"DEBIT","amount":20000},{"id":"L3","account":"ADMIN_EXPENSE","side":"DEBIT","amount":15000},{"id":"L4","account":"TRAINING_EXPENSE","side":"DEBIT","amount":6000},{"id":"L5","account":"BANK","side":"CREDIT","amount":221000,"given":["account","side"]},{"id":"L6","account":"SUPPLIERS","side":"CREDIT","amount":40000,"given":["account"]},{"id":"L7","account":"ACC_AMORT_LICENCE","side":"CREDIT","amount":9000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000023","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA","IAS38.INTERNAL_GENERATION.COST","IAS38.INTERNAL_GENERATION.RESEARCH","IAS38.EXPENSE.PAST_EXPENSES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"PHARMA","tested_point":"DEV_ALL_CRITERIA_REQUIRED","difficulty":"EXPERT","estimated_time_s":600,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"judgment"},"references":["IAS 38 §54","IAS 38 §57","IAS 38 §61","IAS 38 §65","IAS 38 §67","IAS 38 §69","IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"Analyse BioNova's diagnostic test project for year N.","es":""},"explanation":{"fr":"","en":"Approach: 1) date each demonstration: feasibility, intention and market on 30 June, financial resources only on 30 September; 2) the criteria date is that of the last missing element (IAS 38, paras. 57 and 65); 3) compute cost from that date, without excluded costs or past expenses (IAS 38, paras. 67 and 71). Trap: picking 30 June when funding is not secured. Effect on the financial statements: EUR 150,000 in assets, EUR 560,000 in profit or loss, and the total research and development expense is disclosed in the notes (IAS 38, para. 126). Rule to remember: capitalisation begins when the six demonstrations are all met, the last missing one fixing the date (IAS 38, paras. 57 and 65).","es":""},"common_error":{"fr":"","en":"Choosing 30 June because the technical and commercial criteria are met, forgetting that funding is not yet secured.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"BioNova, a mid-sized pharmaceutical laboratory, is developing a rapid diagnostic test for hospital laboratories. Teaching assumption: no additional marketing authorisation is required for this test. BioNova's cash is not sufficient to fund completion of the project (case data).","es":""},"exhibits":[{"title":{"fr":"","en":"Project timeline (case data)","es":""},"body":{"fr":"","en":"January to March N: exploratory studies of several biomarkers. 1 April: one biomarker is selected; prototype kits are produced and tested. 30 June: performance tests are conclusive; the board decides to complete the test and sell it through the existing hospital sales network; a market study confirms demand. 30 September: the bank sends a letter committing to fund the project's business plan. Time and costs have been tracked by project since January.","es":""}},{"title":{"fr":"","en":"Expenditure for year N (case data)","es":""},"body":{"fr":"","en":"January to March: EUR 240,000. April to September: EUR 300,000 of directly attributable costs. October to December: EUR 150,000 of directly attributable costs and EUR 20,000 of training for sales representatives (teaching assumption: no expenditure is incurred on 30 September after the letter is received).","es":""}}],"parts":[{"prompt":{"fr":"","en":"On what date are all six demonstrations first met?","es":""},"explanation":{"fr":"","en":"The six demonstrations are cumulative (IAS 38, para. 57). Feasibility, intention, ability and market are established on 30 June, but BioNova's cash is insufficient (case fact): the resources criterion is only demonstrated through the business plan and the bank's commitment (IAS 38, para. 61), on 30 September. Professional judgement: fixing this date rests on the facts of the case. Rule to remember: the criteria date is that of the last element demonstrated.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"1 April, start of the development phase","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes entry into the development phase as the capitalisation date. On 1 April a biomarker is selected, but neither feasibility, nor intention, nor funding is demonstrated. Cost starts from the date the six demonstrations are first met (IAS 38, paras. 57 and 65). Rule to remember: moving into the development phase is not enough to capitalise.","es":""}},{"id":"B","text":{"fr":"","en":"30 June, conclusive tests and board decision","es":""},"correct":false,"feedback":{"fr":"","en":"This answer fixes the date at 30 June, when the technical and commercial criteria are met. But the resources element is missing: cash is insufficient and the bank only commits on 30 September (IAS 38, paras. 57 and 61). Expenditure from April to September therefore stays in profit or loss. Rule to remember: one missing criterion delays the capitalisation date, even if the others are met.","es":""}},{"id":"C","text":{"fr":"","en":"30 September, bank commitment","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"On the first sale of the test","es":""},"correct":false,"feedback":{"fr":"","en":"This answer waits for the first sale. The criteria do not require sales already made: the market can be demonstrated earlier, here through the market study (IAS 38, para. 57). Waiting for a sale would leave in profit or loss the expenditure from October up to the first sale, which already meets the six demonstrations. Rule to remember: capitalisation begins on the criteria date, not on the date of the first sale (IAS 38, para. 65).","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the amounts for year N.","es":""},"explanation":{"fr":"","en":"Approach: 1) cost = directly attributable expenditure incurred from 30 September, i.e. October to December: EUR 150,000 (IAS 38, para. 65); 2) expenses = 240,000 (research, IAS 38, para. 54) + 300,000 (development before the criteria date) + 20,000 (training, IAS 38, paras. 67 and 69) = EUR 560,000. Rule to remember: expenditure after the criteria date that is directly attributable enters cost (IAS 38, paras. 65 and 67).","es":""},"common_error":{"fr":"","en":"Capitalising costs incurred before the criteria date or training: only directly attributable costs incurred after that date enter cost.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Cost capitalised at 31 December N","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Project expense for year N","es":""},"answer":560000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"In N+1, once the test is successfully on the market, BioNova may transfer the EUR 300,000 from April to September N to the asset.","es":""},"explanation":{"fr":"","en":"Approach: 1) the EUR 300,000 from April to September N was expensed in N; 2) commercial success in N+1 does not change that treatment. Trap: believing that later success justifies a catch-up. Rule to remember: an expenditure initially recognised as an expense is not later included in the cost of an intangible asset (IAS 38, para. 71).","es":""},"common_error":{"fr":"","en":"Believing later success justifies a catch-up: a cost already expensed is not reinstated in the asset's cost.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"At 30 June, the file contains the test report, the board minutes, the market study and the project cost reports. Which document is missing to support the resources criterion?","es":""},"explanation":{"fr":"","en":"The availability of resources can be demonstrated by a business plan identifying the resources required and by a lender's indication that it will fund the plan (IAS 38, para. 61). On 30 June the file already covers feasibility (tests), intention (minutes), market (study) and measurement of expenditure (records); proof of resources is missing. Rule to remember: each demonstration calls for its own evidence, and resources call for a business plan and a funding commitment (IAS 38, para. 61).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A costed business plan and a funder's commitment","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A second market study","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adds a second market study. The file already includes a study confirming demand; doing another would demonstrate again that a market exists (IAS 38, para. 57), not that resources are available. The missing evidence must address the resources criterion, such as a business plan and a funding commitment (IAS 38, para. 61). Rule to remember: evidence is chosen according to the criterion that is missing.","es":""}},{"id":"C","text":{"fr":"","en":"A trade press article praising the project","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks a trade press article. An outside opinion may praise the project but demonstrates none of the six elements (IAS 38, para. 57); it establishes neither resources nor funding. The entity relies on a business plan and on a lender's indication (IAS 38, para. 61). Rule to remember: a communication piece or outside opinion does not replace evidence specific to the entity.","es":""}},{"id":"D","text":{"fr":"","en":"Details of the project team's salaries","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adds the detail of team salaries. It supports the reliable measurement of attributable expenditure, a criterion already covered by the project cost records (IAS 38, para. 57). It says nothing about BioNova's ability to fund completion. For resources, the standard mentions a business plan and a lender's indication (IAS 38, para. 61). Rule to remember: adding evidence for a criterion already covered does not fill the missing one.","es":""}}],"id":"P4","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000024","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA","IAS38.INTERNAL_GENERATION.COST","IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"LOGISTICS","tested_point":"CAPITALISATION_START_DATE","difficulty":"EXPERT","estimated_time_s":600,"lesson_id":"LS.IAS38.000001","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"judgment"},"references":["IAS 38 §54","IAS 38 §56","IAS 38 §57","IAS 38 §60","IAS 38 §65","IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Analyse TransRoute's route optimisation software for year N.","es":""},"explanation":{"fr":"","en":"Approach: 1) date each demonstration: for an internal tool, usefulness replaces the market, but reliable measurement of expenditure is missing before 1 November for lack of tracking by project (IAS 38, para. 57); 2) cost starts on 1 November (IAS 38, para. 65): EUR 110,000; 3) the rest is expensed: exploration, the global estimate and training (IAS 38, paras. 54, 67). Effect on the financial statements: EUR 110,000 in assets and EUR 382,000 in profit or loss, of which EUR 370,000 is research and development (research of 120,000 and pre-criteria development of 250,000) to be included in the total disclosed in the notes (IAS 38, paras. 126 and 127); the EUR 12,000 of training is an expense outside research and development (IAS 38, para. 67). Rule to remember: the six demonstrations are cumulative, and the one that is missing, here reliable measurement of expenditure, fixes the date (IAS 38, paras. 57 and 65).","es":""},"common_error":{"fr":"","en":"Capitalising the overall June to October estimate because the other criteria were met at 30 September.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"TransRoute, a road haulier, is developing in-house route optimisation software that it will use itself; it does not intend to sell it (case data). Its developers work on several IT projects at the same time.","es":""},"exhibits":[{"title":{"fr":"","en":"Steering committee report (case data)","es":""},"body":{"fr":"","en":"February to May N: three algorithmic approaches are explored and compared. 1 June: one approach is selected. 30 September: the proof of concept on real routes is conclusive; the executive committee decides to complete and deploy the tool; the approved IT budget covers completion; operations management approves a business case quantifying fuel and planning-time savings. No time recording by project exists before 1 November, when a tracking tool is introduced; management acknowledges that no reliable key can allocate earlier time.","es":""}},{"title":{"fr":"","en":"Expenditure for year N (case data)","es":""},"body":{"fr":"","en":"February to May: EUR 120,000. June to October: EUR 250,000 (management's overall estimate). November and December: developer time recorded on the project EUR 95,000, cloud services consumed by the project EUR 15,000, training planners on the tool EUR 12,000.","es":""}}],"parts":[{"prompt":{"fr":"","en":"At 30 September, which demonstration is still missing?","es":""},"explanation":{"fr":"","en":"Without time records or a reliable allocation key, TransRoute cannot reliably measure the expenditure attributable to the project before 1 November (IAS 38, para. 57). For internal use, usefulness is enough for the future benefits criterion. Professional judgement: this finding rests on the facts of the case. Rule to remember: without reliable measurement of expenditure, the sixth element is not demonstrated.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Technical feasibility","es":""},"correct":false,"feedback":{"fr":"","en":"This answer sees a lack of technical feasibility. But the proof of concept on real routes, conclusive on 30 September, establishes it (case fact). The technical feasibility criterion is therefore demonstrated (IAS 38, para. 57); it is another element that delays capitalisation. Rule to remember: the six elements of paragraph 57 are demonstrated one by one, from the evidence in the file (IAS 38, para. 57).","es":""}},{"id":"B","text":{"fr":"","en":"Future economic benefits, for lack of an external market","es":""},"correct":false,"feedback":{"fr":"","en":"This answer requires an external market. For an asset used internally, the future benefits criterion concerns its usefulness (IAS 38, para. 57), not the existence of a market. Here the validated file quantifies fuel and planning-time savings: the criterion is demonstrated. Rule to remember: a market for an asset that is sold, usefulness for an asset used internally (IAS 38, para. 57).","es":""}},{"id":"C","text":{"fr":"","en":"Resources to complete the project","es":""},"correct":false,"feedback":{"fr":"","en":"This answer sees a lack of resources. Yet the approved IT budget covers completion of the project (case fact), which establishes their availability (IAS 38, para. 57). The problem lies elsewhere: cost tracking by project does not exist before 1 November. Rule to remember: an approved budget covering completion supports the resources criterion.","es":""}},{"id":"D","text":{"fr":"","en":"Reliable measurement of the development expenditure","es":""},"correct":true}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Which document best supports, for this internal tool, how it will generate future economic benefits?","es":""},"explanation":{"fr":"","en":"For an asset intended for internal use, the entity demonstrates its usefulness (IAS 38, para. 57): the validated file quantifying fuel and planning-time savings is the most relevant evidence. Rule to remember: the evidence of future benefits depends on the intended use of the asset, sale or internal use (IAS 38, para. 57).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The approved business case quantifying fuel and time savings","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A study of competing software selling prices","es":""},"correct":false,"feedback":{"fr":"","en":"This answer relies on competitors' software prices. TransRoute will not sell the tool: a market price says nothing about the internal usefulness it will bring. For internal use, the entity demonstrates the asset's usefulness (IAS 38, para. 57), here by quantifying the savings. Rule to remember: for an asset used internally, demonstrate its usefulness, not a selling price.","es":""}},{"id":"C","text":{"fr":"","en":"The IT team's coding standards","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks the team's coding standards. They concern the technical quality of the software, so rather feasibility or ability to complete it, but not how the tool will generate future benefits (IAS 38, paras. 57 and 60). A file of expected savings addresses that criterion. Rule to remember: each piece of evidence must be linked to the criterion it supports.","es":""}},{"id":"D","text":{"fr":"","en":"The rollout schedule of the new time-tracking tool","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks the deployment schedule of the time-tracking tool. That schedule documents the ability to measure the project's expenditure, hence reliable measurement (IAS 38, para. 57), not the expected benefits of the asset. The benefits are shown by quantifying the fuel and planning savings. Rule to remember: evidence useful for one criterion does not prove the others.","es":""}}],"id":"P2","dimension":"DOCUMENTATION"},{"prompt":{"fr":"","en":"Calculate the amounts for year N.","es":""},"explanation":{"fr":"","en":"Approach: 1) cost = 95,000 + 15,000 = EUR 110,000 incurred since 1 November (IAS 38, paras. 65 and 66); 2) expenses = 120,000 (exploration, research, IAS 38, paras. 54 and 56) + 250,000 (before the criteria date) + 12,000 (training, IAS 38, para. 67) = EUR 382,000. Rule to remember: cost starts from the criteria date and training stays an expense (IAS 38, paras. 65 and 67).","es":""},"common_error":{"fr":"","en":"Capitalising training or costs before 1 November: cost starts from the criteria date and training stays an expense.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Criteria date used","es":""},"value":"01/11/N","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost capitalised at 31 December N","es":""},"answer":110000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Project expense for year N","es":""},"answer":382000,"tolerance":0,"unit":"EUR"}],"id":"P3","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Cost capitalised at 31 December N","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"developer time recorded on the project EUR 95,000","es":""},"value":95000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"cloud services consumed by the project EUR 15,000","es":""},"value":15000,"unit":"EUR"}],"result":110000,"unit":"EUR"}],"rationale":{"fr":"","en":"cost starts from the criteria date and training stays an expense (IAS 38, paras. 65 and 67).","es":""},"references":["REF.IAS38.54","REF.IAS38.56","REF.IAS38.65","REF.IAS38.66","REF.IAS38.67"]}},{"prompt":{"fr":"","en":"Record the summary entry for November and December (teaching assumption: everything is paid from the bank, taxes ignored).","es":""},"explanation":{"fr":"","en":"Approach: 1) debit the asset under development with the directly attributable costs after the criteria date: EUR 110,000 (IAS 38, para. 66); 2) debit training expense, excluded from cost: EUR 12,000 (IAS 38, para. 67); 3) credit bank EUR 122,000. Rule to remember: user training is an expense, even when the tool is capitalised (IAS 38, para. 67).","es":""},"common_error":{"fr":"","en":"Debiting the whole cash outflow to the asset: user training is an expense, even when the tool is capitalised.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEVELOPMENT_ASSET","text":{"fr":"","en":"Software under development (intangible asset)","es":""}},{"id":"TRAINING_EXPENSE","text":{"fr":"","en":"Training expense","es":""}},{"id":"BANK","text":{"fr":"","en":"Bank","es":""}},{"id":"RESEARCH_EXPENSE","text":{"fr":"","en":"Research expense","es":""}}],"lines":[{"id":"L1","account":"DEVELOPMENT_ASSET","side":"DEBIT","amount":110000},{"id":"L2","account":"TRAINING_EXPENSE","side":"DEBIT","amount":12000},{"id":"L3","account":"BANK","side":"CREDIT","amount":122000,"given":["account","side"]}],"id":"P4","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000025","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"IDENTIFIABILITY_ROUTES","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS38.000002","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"Classify each item according to the route that makes it identifiable. Teaching assumption: each item has been chosen so that only one route applies; if it follows neither, it is not identifiable.","es":""},"explanation":{"fr":"","en":"Approach: for each item, first ask whether it could be detached from the entity and sold, licensed or exchanged (the separability route), then whether it arises from a contractual or legal right. The radio frequency (I1) and the non-transferable licence (I3) arise from rights, even non-transferable ones; the prospect file (I2) and the licensable recipes (I4) are separable whether or not the entity wants to sell them. The working atmosphere and reputation (I5) meet neither route. Trap: concluding that an item is not identifiable for lack of intent to sell or of transferability. Rule to remember: an item is identifiable if it is separable or arises from contractual or legal rights (IAS 38, para. 12).","es":""},"common_error":{"fr":"","en":"Classifying the prospect file as \"not identifiable\" because the entity does not plan to sell it, or the non-transferable licence because it cannot be transferred.","es":""},"format":"CLASSIFICATION","categories":[{"id":"SEPARABLE","text":{"fr":"","en":"Identifiable through separability","es":""}},{"id":"CONTRACT_LEGAL","text":{"fr":"","en":"Identifiable through contractual or legal rights","es":""}},{"id":"NOT_IDENTIFIABLE","text":{"fr":"","en":"Not identifiable","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Authorisation to use a radio frequency, granted by the State and non-transferable","es":""},"category":"CONTRACT_LEGAL"},{"id":"I2","text":{"fr":"","en":"File of prospects of a kind that other companies commonly buy, which the entity does not intend to sell","es":""},"category":"SEPARABLE"},{"id":"I3","text":{"fr":"","en":"Software user licence granted to the entity alone, with no right to transfer it","es":""},"category":"CONTRACT_LEGAL"},{"id":"I4","text":{"fr":"","en":"Documented, unpatented manufacturing recipes that could be licensed to another manufacturer","es":""},"category":"SEPARABLE"},{"id":"I5","text":{"fr":"","en":"The good working atmosphere and the general reputation of the business","es":""},"category":"NOT_IDENTIFIABLE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000026","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL","IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"APPLICATION","format":"MATCHING","context":"MEDIA","tested_point":"CONTROL_INDICATORS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS38.000002","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §12","IAS 38 §13","IAS 38 §14","IAS 38 §15","IAS 38 §16"],"exercise":{"prompt":{"fr":"","en":"Case data: a media group is reviewing four resources. Match each resource with the analysis that fits it (one proposed analysis is not used).","es":""},"explanation":{"fr":"","en":"Approach: for each resource, look for what lets the entity obtain the benefits and restrict others' access to them (IAS 38, para. 13). A salaried newsroom with no particular clause can leave: control is generally insufficient (IAS 38, para. 15). Exclusive broadcasting rights are contractual rights, identifiable even if non-transferable (IAS 38, para. 12). Listeners with no contract and no exchange transaction are generally not controlled (IAS 38, para. 16). Know-how protected by a legal duty of confidentiality is controlled (IAS 38, para. 14). Trap: confusing the value of a resource with control over its benefits. Rule to remember: without a right or another means of control, a resource's value is not enough to make it an intangible asset (IAS 38, para. 13).","es":""},"common_error":{"fr":"","en":"Confusing the value of a resource (a well-known newsroom) with the ability of the entity to control its benefits.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"A newsroom of well-known journalists, employed with no specific clause","es":""}},{"id":"L2","text":{"fr":"","en":"Exclusive, non-transferable rights to broadcast a series for three years","es":""}},{"id":"L3","text":{"fr":"","en":"Loyal listeners, with no subscription or contract, whose relationship has never been the subject of an exchange","es":""}},{"id":"L4","text":{"fr":"","en":"A video compression technique, protected by the engineers' legal duty of confidentiality","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Usually insufficient control: employees can leave","es":""}},{"id":"R2","text":{"fr":"","en":"Identifiable through contractual rights, even non-transferable, and controlled through those rights","es":""}},{"id":"R3","text":{"fr":"","en":"Usually insufficient control: no rights and no exchange transactions","es":""}},{"id":"R4","text":{"fr":"","en":"Control established through the protection of the know-how","es":""}},{"id":"R5","text":{"fr":"","en":"Not identifiable, because the entity does not intend to dispose of the resource","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000027","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET","IAS38.DEFINITIONS.IDENTIFIABILITY","IAS38.DEFINITIONS.CONTROL","IAS38.DEFINITIONS.FUTURE_BENEFITS"],"dimension":"RULE_KNOWLEDGE","format":"ERROR_SPOT","context":"GENERIC","tested_point":"DEFINITION_MISCONCEPTIONS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000002","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"pitfalls"},"references":["IAS 38 §4","IAS 38 §12","IAS 38 §13","IAS 38 §17"],"exercise":{"prompt":{"fr":"","en":"A trainee has written five statements about the definition of an intangible asset. Spot the incorrect ones.","es":""},"explanation":{"fr":"","en":"Approach: test each statement against the matching paragraph. S1 is wrong: separability is assessed whether or not the entity intends to sell (IAS 38, para. 12). S3 is wrong too: control usually arises from enforceable rights, but it can be demonstrated by other means (IAS 38, para. 13). S5 is wrong as well: a physical medium does not turn software that is not integral to hardware into property, plant and equipment (IAS 38, para. 4). S2 and S4 are correct (IAS 38, paras. 12 and 17). Trap: tightening the definition with conditions the standard does not set. Rule to remember: identifiability does not depend on an intention to sell, and control does not necessarily require an enforceable right (IAS 38, paras. 12 and 13).","es":""},"common_error":{"fr":"","en":"Believing that intent to sell is a condition of separability, or that only a legally enforceable right can demonstrate control.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"An item is identifiable through separability only if the entity intends to sell it.","es":""},"erroneous":true,"correction":{"fr":"","en":"Separability is assessed whether or not the entity intends to dispose of the item (IAS 38, para. 12).","es":""}},{"id":"S2","text":{"fr":"","en":"Contractual rights make an item identifiable even if they are not transferable.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Without a legally enforceable right, the entity can never show that it controls a resource.","es":""},"erroneous":true,"correction":{"fr":"","en":"Enforceable rights are the usual case, but control can be shown by other means (IAS 38, para. 13).","es":""}},{"id":"S4","text":{"fr":"","en":"Future economic benefits can take the form of cost savings, not only sales.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"Management software delivered on a disk becomes property, plant and equipment because of that medium.","es":""},"erroneous":true,"correction":{"fr":"","en":"The physical medium does not change the nature of the item: software that is not an integral part of hardware remains an intangible asset (IAS 38, para. 4).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000028","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET","IAS38.DEFINITIONS.CONTROL","IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"SOFTWARE","tested_point":"DEFINITION_ASSESSMENT_STARTUP","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS38.000002","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"example-sme"},"references":["IAS 38 §12","IAS 38 §13","IAS 38 §14","IAS 38 §15","IAS 38 §16","IAS 38 §18"],"exercise":{"prompt":{"fr":"","en":"Analyse the start-up's resources against the definition of an intangible asset.","es":""},"explanation":{"fr":"","en":"Approach: 1) classify each resource using the identifiability routes and control (IAS 38, paras. 12 to 16); 2) conclude for the unprotected know-how: control not demonstrated (IAS 38, para. 14); 3) remember that the definition is not recognition (IAS 38, para. 18). Effect on the financial statements: resources that meet the definition can be assessed against the recognition criteria; the rest does not appear on the balance sheet. Trap: treating everything that creates value as an asset. Rule to remember: a resource is an intangible asset if it is identifiable and controlled, and recognising it also requires the criteria (IAS 38, paras. 12, 13 and 18).","es":""},"common_error":{"fr":"","en":"Concluding that everything that creates value for a start-up (team, user community, the founder's ideas) is an intangible asset.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: CodeNova, a three-year-old start-up, publishes a scheduling app for medical practices. Its manager is preparing an investor presentation and wants to know which resources meet the definition of an intangible asset under IAS 38. No amounts are required at this stage.","es":""},"exhibits":[{"title":{"fr":"","en":"Manager's note","es":""},"body":{"fr":"","en":"1. Source code of the app: owned by CodeNova, protected by copyright.\n2. Team of six developers: standard employment contracts, no restraint-of-trade clause.\n3. 400 client practices under annual subscription contracts.\n4. 3,000 users of the free version: no contract, relationship never sold or bought.\n5. Diary-optimisation method developed by the chief technology officer: undocumented, no confidentiality clause or legal protection.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Classify resources 1 to 4 according to whether or not they meet the definition.","es":""},"explanation":{"fr":"","en":"Approach: 1) the source code arises from a legal right (identifiable, IAS 38, para. 12) that allows third parties to be excluded (control, IAS 38, para. 13); 2) the subscriptions rest on contractual rights (IAS 38, paras. 12 and 13); 3) the team does not generally provide sufficient control (IAS 38, para. 15); 4) the free users, with no rights and no exchange transactions, do not either (IAS 38, para. 16). Rule to remember: control rests on rights or on another means of limiting third parties' access (IAS 38, para. 13).","es":""},"common_error":{"fr":"","en":"Treating the team or free users as controlled: without rights or exchange transactions, control is lacking.","es":""},"format":"CLASSIFICATION","categories":[{"id":"MEETS","text":{"fr":"","en":"Meets the definition","es":""}},{"id":"FAILS","text":{"fr":"","en":"Does not meet the definition","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Source code protected by copyright","es":""},"category":"MEETS"},{"id":"I2","text":{"fr":"","en":"Team of six developers","es":""},"category":"FAILS"},{"id":"I3","text":{"fr":"","en":"Relationships with practices under subscription contracts","es":""},"category":"MEETS"},{"id":"I4","text":{"fr":"","en":"Free users without a contract","es":""},"category":"FAILS"}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"What conclusion should be drawn for the diary-optimisation method (resource 5)?","es":""},"explanation":{"fr":"","en":"The entity controls the benefits of know-how when it is protected, for example by copyright, a lawful non-compete clause or a legal duty of confidentiality (IAS 38, para. 14). None of this exists here for the optimisation method. Professional judgement: documenting and protecting the method could change the analysis in the future, with no effect on the situation described. Rule to remember: expected future benefits are not enough; control must also be established (IAS 38, paras. 13 and 14).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It meets the definition, because it provides future economic benefits.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer stops at the future economic benefits. But the definition also requires the entity to control the resource, i.e. to be able to obtain the benefits and restrict others' access to them (IAS 38, para. 13). An undocumented method, with no confidentiality clause or legal protection, does not meet that control (IAS 38, para. 14). Rule to remember: expected benefits are not enough without control.","es":""}},{"id":"B","text":{"fr":"","en":"Control is not demonstrated as things stand: the know-how is protected neither by a right, nor by a clause, nor by a duty of confidentiality.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It meets the definition, because the chief technology officer is employed by CodeNova.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer infers control from the technical director's employment contract. But management or technical talent meets the definition only if protected by legal rights (IAS 38, para. 15): an employee can leave with her know-how. Simply being a CodeNova employee therefore does not protect the method. Rule to remember: an employment contract is not protection of know-how.","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Since the source code meets the definition of an intangible asset, CodeNova must necessarily recognise it in its statement of financial position.","es":""},"explanation":{"fr":"","en":"Recognition requires the entity to demonstrate that the item meets the definition and the recognition criteria (IAS 38, para. 18). The source code meets the definition, but CodeNova must still examine the criteria (probable benefits, cost reliably measured; IAS 38, para. 21). Rule to remember: meeting the definition is the first step, not recognition (IAS 38, para. 18).","es":""},"common_error":{"fr":"","en":"Recognising as soon as the definition is met: the recognition criteria must still be demonstrated.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000029","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MULTIPLE_CHOICE","context":"RETAIL","tested_point":"CONTROL_INDICATORS","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS38.000002","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"judgment"},"references":["IAS 38 §13","IAS 38 §14","IAS 38 §15","IAS 38 §16"],"exercise":{"prompt":{"fr":"","en":"Case data: a chain of DIY stores is analysing four resources. In which situations can the control pillar be regarded as met? (several answers possible)","es":""},"explanation":{"fr":"","en":"Control means being able to obtain the benefits and restrict the access of others to them (IAS 38, para. 13). Exchange transactions for similar non-contractual customer relationships provide evidence that the entity can control those relationships (IAS 38, para. 16); the judgement concerns whether the portfolios really are similar. Know-how protected by a legal duty of confidentiality is controlled (IAS 38, para. 14).","es":""},"common_error":{"fr":"","en":"Rejecting the customer portfolio solely because there is no contract, without considering the exchange transactions.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Sales staff trained at great expense in advisory techniques, free to leave the business.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes the sales staff training as control. But the entity has no power to obtain the benefits or restrict access to them: the salespeople are free to leave with their skills. A trained team does not generally provide sufficient control, however much was spent (IAS 38, para. 15). Rule to remember: the cost of training does not create control over the skills acquired.","es":""}},{"id":"B","text":{"fr":"","en":"A portfolio of loyal trade customers, without contracts; the chain recently bought a similar customer portfolio, also without contracts, from a competitor.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Procurement methods protected by a legal duty of confidentiality on employees.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The recognised talent of the purchasing director, without any legal protection.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks the purchasing director's talent. Management or technical talent meets the definition only if protected by legal rights (IAS 38, para. 15); here there is no protection and the person can leave. Their value to the chain is not enough to demonstrate control. Rule to remember: without legal protection, an individual's talent is not controlled by the entity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000030","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA","IAS38.RECOGNITION.INITIAL_MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","format":"ORDERING","context":"GENERIC","tested_point":"RECOGNITION_SEQUENCE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS38.000003","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"how-to-apply"},"references":["IAS 38 §18","IAS 38 §21","IAS 38 §24"],"exercise":{"prompt":{"fr":"","en":"Put in order the reasoning that leads to recording expenditure as an intangible asset.","es":""},"explanation":{"fr":"","en":"Approach: this order is a teaching approach, not a mandatory sequence. 1) Check the definition: identifiable, controlled, future benefits (IAS 38, para. 18); 2) assess whether the benefits are probable; 3) check that cost can be measured reliably (IAS 38, para. 21); 4) recognise and measure initially at cost (IAS 38, para. 24). The two criteria, probability and reliable cost, are cumulative: their order relative to each other is a teaching choice. Trap: moving to measurement as soon as the definition is met. Rule to remember: definition, then the two recognition criteria, then initial measurement at cost (IAS 38, paras. 18, 21 and 24).","es":""},"common_error":{"fr":"","en":"Moving straight to measurement once the definition is met, forgetting the recognition criteria.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Check that the item meets the definition of an intangible asset.","es":""}},{"id":"S2","text":{"fr":"","en":"Assess whether the future economic benefits attributable to the asset are probable.","es":""}},{"id":"S3","text":{"fr":"","en":"Check that the cost of the asset can be measured reliably.","es":""}},{"id":"S4","text":{"fr":"","en":"Recognise the asset and measure it initially at cost.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000031","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA","IAS38.RECOGNITION.INITIAL_MEASUREMENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"PHARMA","tested_point":"SEPARATE_ACQUISITION_RECOGNITION_MEMO","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000003","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"initial-measurement"},"references":["IAS 38 §21","IAS 38 §24","IAS 38 §25","IAS 38 §26"],"exercise":{"prompt":{"fr":"","en":"A pharmaceutical laboratory buys a patent on a molecule from a biotech company for EUR 450,000 paid in cash. When the future medicine will reach the market is uncertain. An internal expert estimates the patent at EUR 600,000. Spot the errors in the assistant accountant's memo.","es":""},"explanation":{"fr":"","en":"Approach: 1) probability of benefits is deemed met for a separately acquired asset, even if amount and timing are uncertain (IAS 38, para. 25): S1 is wrong; 2) a cost settled in cash is generally reliable (IAS 38, para. 26): S2 is right; 3) initial measurement is at cost, i.e. EUR 450,000, not at the expert's estimate (IAS 38, para. 24): S3 is wrong; 4) the two criteria are cumulative (IAS 38, para. 21): S4 is right. Trap: applying the logic of an internal project to a purchase. Rule to remember: for a separately acquired asset, probability is deemed met and initial measurement is at cost (IAS 38, paras. 24 and 25).","es":""},"common_error":{"fr":"","en":"Requiring certainty about future sales for a purchased asset, or using an estimated value rather than the price paid.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The patent cannot be recognised while the market launch date remains uncertain, because future benefits are not probable.","es":""},"erroneous":true,"correction":{"fr":"","en":"For a separately acquired asset, the probability condition is deemed met, even if the amount or timing of benefits is uncertain (IAS 38, para. 25).","es":""}},{"id":"S2","text":{"fr":"","en":"Since the price is paid in cash, the cost of the patent can be measured reliably.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The patent is recorded as an asset at EUR 600,000, an amount that better reflects its economic value.","es":""},"erroneous":true,"correction":{"fr":"","en":"Initial measurement is at cost, here the price paid of EUR 450,000, not at an estimated value (IAS 38, para. 24).","es":""}},{"id":"S4","text":{"fr":"","en":"Both recognition criteria, probable benefits and reliable cost, must be met together.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000032","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.SUBSEQUENT_EXPENDITURE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MEDIA","tested_point":"SUBSEQUENT_EXPENDITURE_TREATMENT","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS38.000003","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"subsequent-expenditure"},"references":["IAS 38 §18","IAS 38 §20"],"exercise":{"prompt":{"fr":"","en":"A media group incurs several items of subsequent expenditure on intangible assets already recognised. Classify each one according to IAS 38.","es":""},"explanation":{"fr":"","en":"Approach: 1) spot the brand, newspaper title and customer list items (I1, I2, I3), acquired or internally generated: their subsequent expenditure is always recognised in profit or loss (IAS 38, para. 20); 2) other subsequent expenditure (I4, I5) mostly maintains the expected benefits: in principle expensed, capitalised only exceptionally if the definition and criteria are demonstrated (IAS 38, paras. 18 and 20). Professional judgement: calling an expenditure an improvement requires demonstrating it; management's presentation is not enough. Effect on the financial statements: I1 to I3 are expenses, with no effect on the asset's carrying amount. Rule to remember: subsequent expenditure on brands and similar items is always recognised in profit or loss, whether acquired or internally generated (IAS 38, para. 20).","es":""},"common_error":{"fr":"","en":"Thinking that the origin of the asset (acquired rather than internally generated) allows subsequent expenditure on a brand or title to be capitalised.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ALWAYS_EXPENSE","text":{"fr":"","en":"Always expensed, with no possibility of demonstrating otherwise","es":""}},{"id":"GENERALLY_EXPENSE","text":{"fr":"","en":"Expensed as a rule; capitalised only exceptionally if definition and criteria are demonstrated","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Advertising campaign to relaunch a magazine title acquired three years ago.","es":""},"category":"ALWAYS_EXPENSE"},{"id":"I2","text":{"fr":"","en":"Updating and enriching a subscriber list acquired from a competitor.","es":""},"category":"ALWAYS_EXPENSE"},{"id":"I3","text":{"fr":"","en":"Visual redesign of the brand of a television channel bought from a competitor.","es":""},"category":"ALWAYS_EXPENSE"},{"id":"I4","text":{"fr":"","en":"Annual corrective maintenance contract for licensed editorial management software.","es":""},"category":"GENERALLY_EXPENSE"},{"id":"I5","text":{"fr":"","en":"Upgrade expenditure on licensed broadcasting software, presented by management as an enhancement.","es":""},"category":"GENERALLY_EXPENSE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000033","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"AUTOMOTIVE","tested_point":"SEPARATE_ACQUISITION_PROBABILITY_DEEMED","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS38.000003","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"how-to-apply"},"references":["IAS 38 §21","IAS 38 §25"],"exercise":{"prompt":{"fr":"","en":"An automotive supplier separately buys a patent on a parking assistance system from a start-up. The CFO hesitates: \"We don't know when or how much this patent will earn; should we wait before recognising it?\" Which answer complies with IAS 38?","es":""},"explanation":{"fr":"","en":"For a separately acquired intangible asset, the price paid reflects the entity's expectations about the probability of future benefits: the probability criterion is deemed met, even if the amount or timing is uncertain (IAS 38, para. 25). The CFO must still check the definition and the reliability of cost (IAS 38, paras. 21 and 26). Rule to remember: uncertainty about the return on a purchased asset does not prevent its recognition (IAS 38, para. 25).","es":""},"common_error":{"fr":"","en":"Applying to a purchased asset the demonstration requirement that belongs to internally generated projects.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: as long as the amount of benefits is unknown, the probability criterion is not met.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer makes recognition depend on knowing the amount of the benefits. For a separately acquired asset, the price paid already reflects the entity's expectations: probability is deemed met even if the amount or timing is uncertain (IAS 38, para. 25). Waiting is therefore unnecessary. Rule to remember: uncertainty about the amount or timing of benefits does not defeat the probability criterion for a purchased asset.","es":""}},{"id":"B","text":{"fr":"","en":"No: the price paid already reflects the entity's expectations about future benefits; the probability condition is deemed met for a separate acquisition.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It depends: sales forecasts demonstrating probability must be prepared, as for an internal project.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer imposes sales forecasts, as for an internally generated project. That demonstration is not requested here: for a separately acquired asset, probability of benefits is deemed met (IAS 38, para. 25), because the price paid already reflects the entity's expectations. Forecasts may help management, but they do not condition recognition. Rule to remember: demonstrating probability is not required for a separately acquired asset.","es":""}},{"id":"D","text":{"fr":"","en":"No, but the patent must be expensed, because its return is uncertain.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer expenses the patent because its return is uncertain. But uncertainty does not turn a purchase into an expense: probability is deemed met for a separately acquired asset (IAS 38, para. 25), and the patent is recognised as an asset if the other conditions are met (IAS 38, para. 21). Rule to remember: a purchased asset that meets the definition and whose cost is reliable is recognised, even if its return is uncertain.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000034","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR","IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"INTERNAL_VS_ACQUIRED_ORIGIN","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS38.000004","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"brands-rule"},"references":["IAS 38 §48","IAS 38 §63"],"exercise":{"prompt":{"fr":"","en":"Classify each item according to whether or not the prohibition in IAS 38, paras. 48 or 63, applies to it.","es":""},"explanation":{"fr":"","en":"Approach: for each item, determine its origin. The customer file built in-house (I1), reputation (I3), the name and logo of the new range (I5), the magazine title launched by the publisher's own newsroom (I6): internally generated, hence not recognised (IAS 38, paras. 48 and 63). The customer list bought with assignment of rights (I2) and the brand bought back (I4): separately acquired, outside these provisions. Trap: applying the prohibition to every brand or customer list, including one that was purchased. Rule to remember: the prohibition targets the internal origin of the item, not its nature (IAS 38, para. 63).","es":""},"common_error":{"fr":"","en":"Applying the prohibition to every \"brand\" or \"customer list\" type item, including when it was bought from a third party.","es":""},"format":"CLASSIFICATION","categories":[{"id":"NEVER","text":{"fr":"","en":"Internally generated: never recognised as an asset","es":""}},{"id":"OTHER_PARAGRAPHS","text":{"fr":"","en":"Acquired separately: outside the prohibition, may be recognised under the other paragraphs","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"The customer file built up by the sales force over the years","es":""},"category":"NEVER"},{"id":"I2","text":{"fr":"","en":"A customer list bought from a company in liquidation, with transfer of the rights","es":""},"category":"OTHER_PARAGRAPHS"},{"id":"I3","text":{"fr":"","en":"The reputation for quality built up since the business was founded","es":""},"category":"NEVER"},{"id":"I4","text":{"fr":"","en":"A brand bought from a competitor","es":""},"category":"OTHER_PARAGRAPHS"},{"id":"I5","text":{"fr":"","en":"The name and logo of a new range conceived by the marketing department","es":""},"category":"NEVER"},{"id":"I6","text":{"fr":"","en":"A magazine title launched by the publisher's own editorial team","es":""},"category":"NEVER"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000035","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"SOFTWARE","tested_point":"INTERNAL_GOODWILL_NOT_RECOGNISED","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS38.000004","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §48","IAS 38 §49","IAS 38 §50"],"exercise":{"prompt":{"fr":"","en":"Case data: a young software company raises funds on the basis of a valuation of EUR 40,000,000, whereas its identifiable net assets amount to EUR 4,000,000. Statement: the company may recognise goodwill of EUR 36,000,000 in its own accounts, since this amount has been confirmed by independent investors.","es":""},"explanation":{"fr":"","en":"Approach: 1) identify where the amount comes from: EUR 36,000,000 is a valuation gap, not the cost of an identified resource; 2) this gap reflects many factors and does not represent the cost of controlled intangible assets (IAS 38, para. 50); 3) internally generated goodwill is not an identifiable resource reliably measurable at cost (IAS 38, para. 49) and is not recognised (IAS 38, para. 48). Trap: believing that a value observed by investors makes it recognisable. Rule to remember: internally generated goodwill is not recognised as an asset, whatever the entity's valuation (IAS 38, para. 48).","es":""},"common_error":{"fr":"","en":"Believing that a value observed in a funding round makes internal goodwill \"reliable\" and therefore recognisable.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000036","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"RETAIL","tested_point":"INTERNAL_BRAND_NOT_CAPITALISED","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000004","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"brands-rule"},"references":["IAS 38 §63","IAS 38 §64","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"Case data: the CFO of a clothing retailer created the \"Linéa\" brand internally in N. He spent EUR 260,000 (design agency, advertising campaign, marketing team salaries). He presents the reasoning below to capitalise the brand. Spot the erroneous steps.","es":""},"explanation":{"fr":"","en":"Approach: test each step against the rule. S2 is wrong: an internally generated brand is not recognised, without going through the development criteria (IAS 38, para. 63). S3 is wrong too: its cost cannot be distinguished from the cost of developing the business as a whole, so no allocation key isolates it (IAS 38, para. 64). S5 is wrong as well: success does not change the brand's internal origin (IAS 38, para. 63). S1 and S4 are correct; advertising is an expense in any case (IAS 38, para. 69). Trap: treating the brand as a development project whose benefits could be demonstrated. Effect on the financial statements: the EUR 260,000 weighs on profit for N, with no asset on the balance sheet. Rule to remember: an internally generated brand is not recognised as an asset (IAS 38, paras. 63 and 64).","es":""},"common_error":{"fr":"","en":"Thinking that an internal brand can be capitalised once its future benefits are demonstrated, like a development project.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"\"The Linéa brand was created by our own teams, without any purchase from a third party.\"","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"\"Since we can show that the brand will generate future sales, it meets the criteria for an intangible asset in the development phase.\"","es":""},"erroneous":true,"correction":{"fr":"","en":"An internally generated brand is never recognised, whatever future benefits are demonstrated: the development criteria are not used (IAS 38, para. 63).","es":""}},{"id":"S3","text":{"fr":"","en":"\"We isolate the \"brand\" share of the campaign, i.e. 60% of the EUR 260,000, which we capitalise.\"","es":""},"erroneous":true,"correction":{"fr":"","en":"The cost of an internally generated brand cannot be distinguished from the cost of developing the business: no allocation key can isolate it (IAS 38, para. 64).","es":""}},{"id":"S4","text":{"fr":"","en":"\"The EUR 260,000 is therefore recognised as an expense in N, including the advertising campaign.\"","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"\"If the brand becomes famous, we will be able to recognise it later as an asset at its market value.\"","es":""},"erroneous":true,"correction":{"fr":"","en":"Success does not change the internal origin of the brand: it is never recognised (IAS 38, para. 63).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000037","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR","IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"APPLICATION","format":"MINI_CASE","context":"MEDIA","tested_point":"MASTHEAD_INTERNAL_VS_ACQUIRED","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IAS38.000004","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"example-bought-vs-created"},"references":["IAS 38 §48","IAS 38 §50","IAS 38 §63","IAS 38 §64"],"exercise":{"prompt":{"fr":"","en":"Analyse the situation of the Presse Horizon group, then answer the questions.","es":""},"explanation":{"fr":"","en":"Approach: 1) distinguish the origin of each title: 'Le Quotidien du Port' is internally generated, 'Montagne Magazine' was bought; 2) the prohibition targets internal origin (IAS 38, para. 63); 3) the group's valuation gap is internally generated goodwill, not recognised (IAS 38, paras. 48 and 50). Trap: treating the two titles the same way. Effect on the financial statements: the EUR 380,000 of relaunch costs weighs on profit for N, and the balance sheet carries no asset for the internal title or for the EUR 10,000,000 gap. Rule to remember: an internally generated newspaper title is not recognised, whereas an acquired title is analysed under other paragraphs (IAS 38, para. 63).","es":""},"common_error":{"fr":"","en":"Treating both titles the same way, whereas only their origin (internal or purchased) determines whether para. 63 applies.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: the Presse Horizon media group publishes two titles. \"Le Quotidien du Port\" was created fifteen years ago by its own editorial team. \"Montagne Magazine\" was bought in N from another publisher, together with the title and the publishing rights. In N, the group also spends EUR 150,000 on an advertising campaign and EUR 230,000 on the salaries of a marketing team to relaunch \"Le Quotidien du Port\". Finally, an investment fund values the group at EUR 25,000,000, for identifiable net assets of EUR 15,000,000.","es":""},"parts":[{"prompt":{"fr":"","en":"What is the treatment of the \"Le Quotidien du Port\" title?","es":""},"explanation":{"fr":"","en":"Internally generated newspaper titles are not recognised as assets (IAS 38, para. 63): neither a value estimate nor a demonstration of future benefits changes that. Rule to remember: the internal origin of a title is enough to rule out its recognition (IAS 38, para. 63).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is recognised as an asset at the value estimated by the fund","es":""},"correct":false,"feedback":{"fr":"","en":"This answer uses the value estimated by the fund. A third-party value estimate is not an acquisition cost and does not change the title's origin: generated internally, it is not recognised (IAS 38, para. 63). The origin, internal or purchased, determines whether this prohibition applies. Rule to remember: an external valuation does not make an internally generated title recognisable.","es":""}},{"id":"B","text":{"fr":"","en":"It is never recognised, because it was internally generated","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is recognised if the development-phase criteria are demonstrated","es":""},"correct":false,"feedback":{"fr":"","en":"This answer applies the development-phase criteria to a newspaper title. But for an internally generated title, the prohibition applies without going through those criteria (IAS 38, para. 63), because its cost cannot be distinguished from the cost of developing the business (IAS 38, para. 64). Demonstrating the six elements changes nothing. Rule to remember: the development criteria do not apply to an internally generated newspaper title.","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Statement: the prohibition in para. 63 also applies to \"Montagne Magazine\", since it is a masthead.","es":""},"explanation":{"fr":"","en":"Approach: 1) read the scope of para. 63: publication titles generated internally; 2) 'Montagne Magazine' was bought, so it is not covered. Trap: applying the prohibition to every newspaper title. Rule to remember: the prohibition targets internal origin, not the nature of the item; the purchased title is analysed under other paragraphs (IAS 38, para. 63).","es":""},"common_error":{"fr":"","en":"Applying the prohibition to every press title: it targets internally generated titles, not a purchased one.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"What amount of the relaunch expenditure on \"Le Quotidien du Port\" is recognised as an expense in N?","es":""},"explanation":{"fr":"","en":"Approach: since the title is internally generated, nothing is recognised as an asset (IAS 38, para. 63), because these costs cannot be distinguished from those of developing the business (IAS 38, para. 64). Expenses for N: 150,000 + 230,000 = EUR 380,000. Rule to remember: relaunch spending on an internal title is expensed, with no capitalisable share (IAS 38, paras. 63 and 64).","es":""},"common_error":{"fr":"","en":"Capitalising part of the relaunch costs: for an internally generated title, they are all expenses.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Advertising campaign","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Marketing team salaries","es":""},"value":"230000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Expenses of N","es":""},"answer":380000,"tolerance":0,"unit":"EUR"}],"id":"P3","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Expenses of N","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Advertising campaign","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Marketing team salaries","es":""},"value":230000,"unit":"EUR"}],"result":380000,"unit":"EUR"}],"rationale":{"fr":"","en":"relaunch spending on an internal title is expensed, with no capitalisable share (IAS 38, paras. 63 and 64).","es":""},"references":["REF.IAS38.63","REF.IAS38.64"]}},{"prompt":{"fr":"","en":"What does the group do with the EUR 10,000,000 gap between the value estimated by the fund and its identifiable net assets?","es":""},"explanation":{"fr":"","en":"Approach: the EUR 10,000,000 gap between the entity's value and its identifiable net assets reflects many factors and does not represent the cost of controlled intangibles (IAS 38, para. 50); it is internally generated goodwill, not recognised (IAS 38, para. 48). Rule to remember: this goodwill is not recognised as an asset (IAS 38, para. 48).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: this gap is not recognised","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It recognises goodwill of EUR 10,000,000","es":""},"correct":false,"feedback":{"fr":"","en":"This answer puts the gap on the balance sheet as goodwill. But internally generated goodwill is not recognised as an asset (IAS 38, para. 48): it is not an identifiable resource reliably measurable at cost (IAS 38, para. 49). The fund's estimate does not change that internal origin. Rule to remember: internally generated goodwill is not recognised, whatever the value estimate.","es":""}},{"id":"C","text":{"fr":"","en":"It increases the carrying amount of the two titles by this gap","es":""},"correct":false,"feedback":{"fr":"","en":"This answer revalues the two titles to absorb the gap. The gap reflects many factors, many of which are not identified intangibles, and does not represent the cost of controlled intangible assets (IAS 38, para. 50). Moreover, the internally created title is not recognised (IAS 38, para. 63). Rule to remember: the gap in the entity's value is not pushed onto identified assets.","es":""}}],"id":"P4","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000038","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL","IAS38.SCOPE.EXCLUSIONS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MEDIA","tested_point":"SCOPE_IN_OR_OUT","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS38.000005","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"example-inventory"},"references":["IAS 38 §2","IAS 38 §3","IFRS 16 §3"],"exercise":{"prompt":{"fr":"","en":"A media group lists the items below. Classify each one according to whether it falls under IAS 38, or falls under another standard or is excluded from its scope.","es":""},"explanation":{"fr":"","en":"Approach: for each item, first look for a specialised standard or a general exclusion; otherwise IAS 38 applies. The internal software (I2) and the film licence held by a lessee (I1) fall under IAS 38 (IAS 38, para. 2) and (IFRS 16, para. 3). The boxed sets for resale are inventories (IAS 2), the deferred tax asset falls under IAS 12 and acquired goodwill under IFRS 3 (IAS 38, para. 3); the shares are financial assets, excluded (IAS 38, para. 2). Trap: classifying everything intangible under IAS 38, or the film licence under IFRS 16. Rule to remember: IAS 38 applies to intangibles that no other standard deals with (IAS 38, paras. 2 and 3).","es":""},"common_error":{"fr":"","en":"Putting everything non-physical under IAS 38, or putting the film licence under IFRS 16 because it is a right of use.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IAS38","text":{"fr":"","en":"Falls under IAS 38","es":""}},{"id":"OTHER","text":{"fr":"","en":"Falls under another standard or is excluded","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"3-year licence on a film, held by the group as lessee","es":""},"category":"IAS38"},{"id":"I2","text":{"fr":"","en":"Video editing software bought for internal teams","es":""},"category":"IAS38"},{"id":"I3","text":{"fr":"","en":"Digital film box sets bought to be resold in stores","es":""},"category":"OTHER"},{"id":"I4","text":{"fr":"","en":"Deferred tax asset on tax losses carried forward","es":""},"category":"OTHER"},{"id":"I5","text":{"fr":"","en":"Goodwill recognised on the acquisition of a radio station","es":""},"category":"OTHER"},{"id":"I6","text":{"fr":"","en":"Shares in a production company held as an investment","es":""},"category":"OTHER"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000039","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"EXCLUSION_STANDARD_MAPPING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS38.000005","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"other-standards"},"references":["IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"Match each item excluded from the scope of IAS 38 with the standard that deals with it.","es":""},"explanation":{"fr":"","en":"Approach: for each category, find the specialised standard that deals with it instead of IAS 38: inventories (IAS 2), deferred tax (IAS 12), employee benefits (IAS 19), acquired goodwill (IFRS 3), assets held for sale (IFRS 5), contracts with customers (IFRS 15) (IAS 38, para. 3). IAS 16 and IAS 36 are not among these standards. Trap: matching goodwill to IAS 36, which deals with the impairment of goodwill. Rule to remember: when another standard governs a category of intangibles, that standard applies (IAS 38, para. 3).","es":""},"common_error":{"fr":"","en":"Matching goodwill with IAS 36: IAS 36 deals with its impairment, but its accounting falls under IFRS 3, not IAS 38.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Intangibles held for sale in the ordinary course of business","es":""}},{"id":"L2","text":{"fr":"","en":"Deferred tax assets","es":""}},{"id":"L3","text":{"fr":"","en":"Assets arising from employee benefits","es":""}},{"id":"L4","text":{"fr":"","en":"Goodwill acquired in a business combination","es":""}},{"id":"L5","text":{"fr":"","en":"Non-current intangibles classified as held for sale","es":""}},{"id":"L6","text":{"fr":"","en":"Assets arising from contracts with customers recognised under that standard","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"IAS 2","es":""}},{"id":"R2","text":{"fr":"","en":"IAS 12","es":""}},{"id":"R3","text":{"fr":"","en":"IAS 19","es":""}},{"id":"R4","text":{"fr":"","en":"IFRS 3","es":""}},{"id":"R5","text":{"fr":"","en":"IFRS 5","es":""}},{"id":"R6","text":{"fr":"","en":"IFRS 15","es":""}},{"id":"R7","text":{"fr":"","en":"IAS 16","es":""}},{"id":"R8","text":{"fr":"","en":"IAS 36","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"},{"left":"L5","right":"R5"},{"left":"L6","right":"R6"}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000040","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"AUTOMOTIVE","tested_point":"TANGIBLE_INTANGIBLE_COMBINATION","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS38.000005","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"physical-medium"},"references":["IAS 38 §4"],"exercise":{"prompt":{"fr":"","en":"Analyse the three acquisitions made by the parts maker Motrix and answer the questions.","es":""},"explanation":{"fr":"","en":"Approach: for each software item, ask whether the hardware can work without it and use judgement on the most significant element (IAS 38, para. 4). The control software of the machining centre and the operating systems are integral to the hardware: IAS 16. The design licence, separately priced and transferable from one workstation to another, is not integral to hardware: IAS 38. Effect on the financial statements: the former are presented with property, plant and equipment, the licence with intangible assets. Rule to remember: software without which the hardware cannot operate follows the hardware; software that is not integral is an intangible asset (IAS 38, para. 4).","es":""},"common_error":{"fr":"","en":"Treating all software the same way, without asking whether the hardware works without it.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"The car parts maker Motrix is modernising its plant. It acquires (1) a computer numerically controlled machining centre delivered with its control software: without this software, the machine cannot carry out any operation; (2) a 4-year licence for computer-aided design software, installable on any workstation and renewable separately; (3) twenty computers delivered with their operating system.","es":""},"exhibits":[{"title":{"fr":"","en":"Extract from the design licence contract","es":""},"body":{"fr":"","en":"4-year user licence, priced separately from any hardware, transferable from one workstation to another, updates delivered independently of the equipment.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Which standard applies to the control software of the machining centre?","es":""},"explanation":{"fr":"","en":"Without this software the machine cannot perform any operation (case fact): it is integral to the hardware and follows IAS 16 (IAS 38, para. 4). Rule to remember: software essential to the operation of a computer-controlled machine follows the machine (IAS 38, para. 4).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 16, with the machine","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IAS 38, as separate software","es":""},"correct":false,"feedback":{"fr":"","en":"This answer treats the control software as a separate intangible. But the machine cannot perform any operation without it: it is integral to the hardware, and the whole follows IAS 16 (IAS 38, para. 4). Separating it would isolate an item that does not work on its own. Rule to remember: software without which the machine cannot operate is not accounted for separately under IAS 38.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Which standard applies to the design licence?","es":""},"explanation":{"fr":"","en":"Software that is not integral to hardware is an intangible asset (IAS 38, para. 4). A separate price, transfer from one workstation to another and updates independent of the equipment support this judgement. Rule to remember: if the hardware works without the software, the software is analysed as an intangible asset (IAS 38, para. 4).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 16, with the computers","es":""},"correct":false,"feedback":{"fr":"","en":"This answer attaches the licence to the computers. But the licence can be moved from one workstation to another, has a separate price and receives updates independently of the equipment: it is not integral to hardware and is an intangible asset (IAS 38, para. 4). The hardware would work without it. Rule to remember: buying software and hardware together does not make the software part of the hardware.","es":""}},{"id":"B","text":{"fr":"","en":"IAS 38","es":""},"correct":true}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"True or false? The operating systems of the twenty computers must be recognised separately as intangible assets.","es":""},"explanation":{"fr":"","en":"Approach: ask whether the hardware works without the software. A computer does not work without its operating system, which is integral to the hardware and follows IAS 16 (IAS 38, para. 4). Trap: treating all software the same way. Rule to remember: a computer's operating system follows the hardware (IAS 38, para. 4).","es":""},"common_error":{"fr":"","en":"Treating the operating system as a separate intangible: without it the computer does not work; it follows the hardware under IAS 16.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000041","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL","IAS38.SCOPE.EXCLUSIONS","IAS38.SCOPE.OBJECTIVE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"ENERGY","tested_point":"EXTRACTIVE_SCOPE_MEMO","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS38.000005","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §1","IAS 38 §2","IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"A junior analyst at the oil company Petralis drafts a memo on the scope of IAS 38. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Approach: read the scope in paragraph 2. S3 is wrong: the exclusion targets specific assets (exploration and evaluation, development and extraction), not the entity; HR software falls under IAS 38. S4 is wrong too: government bonds are financial assets, excluded from scope. S6 is wrong as well: IAS 38 also sets recognition and measurement (IAS 38, para. 1). S1, S2 and S5 are correct. Trap: reading the extractive exclusions as excluding the whole entity. Rule to remember: scope exclusions concern categories of assets, not the entity's sector (IAS 38, para. 2).","es":""},"common_error":{"fr":"","en":"Reading the extractive exclusions as excluding the whole company.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Our exploration and evaluation assets are excluded from the scope of IAS 38.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The development and extraction expenditure on the North Sea gas field is excluded from the scope of IAS 38.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"As Petralis is an extractive company, its licence for human resources management software is also outside the scope of IAS 38.","es":""},"erroneous":true,"correction":{"fr":"","en":"The exclusion targets exploration and evaluation assets and development and extraction expenditure, not the company: the HR software falls under IAS 38 (IAS 38, para. 2).","es":""}},{"id":"S4","text":{"fr":"","en":"Our government bonds, which have no physical substance, are intangible assets within IAS 38.","es":""},"erroneous":true,"correction":{"fr":"","en":"They are financial assets, excluded from the scope of IAS 38 (IAS 38, para. 2).","es":""}},{"id":"S5","text":{"fr":"","en":"IAS 38 applies to intangible assets that are not dealt with specifically in another standard.","es":""},"erroneous":false},{"id":"S6","text":{"fr":"","en":"IAS 38 merely requires disclosures in the notes; the recognition of our intangibles is a matter for our internal policy.","es":""},"erroneous":true,"correction":{"fr":"","en":"IAS 38 also sets the recognition requirements and the measurement of the carrying amount (IAS 38, para. 1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000042","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL","IAS38.SCOPE.EXCLUSIONS"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"SCOPE_DECISION_PATH","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS38.000005","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"how-to-decide"},"references":["IAS 38 §2","IAS 38 §3","IAS 38 §4"],"exercise":{"prompt":{"fr":"","en":"Put in order the approach proposed in the course to decide whether IAS 38 applies to a non-physical item.","es":""},"explanation":{"fr":"","en":"Approach: this order is a teaching choice of the course, not a mandatory sequence. 1) Describe the item and its purpose; 2) if it combines tangible and intangible parts, determine the most significant element (IAS 38, para. 4); 3) review the general exclusions (IAS 38, para. 2); 4) look for a specialised standard (IAS 38, para. 3); 5) if there is no exclusion, apply IAS 38 and check the definition. Trap: concluding that an item is an intangible asset before checking scope. Rule to remember: IAS 38 applies once it is checked that no exclusion or specialised standard takes precedence (IAS 38, paras. 2 and 3).","es":""},"common_error":{"fr":"","en":"Concluding that an item is an intangible asset before checking the scope.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Describe the item and its purpose (use, sell, lease, dispose of).","es":""}},{"id":"S2","text":{"fr":"","en":"If it combines tangible and intangible elements, determine the more significant one.","es":""}},{"id":"S3","text":{"fr":"","en":"Rule out the general exclusions: financial asset, exploration and evaluation, extraction.","es":""}},{"id":"S4","text":{"fr":"","en":"Look for a specialised standard (IAS 2, IAS 12, IFRS 16, IAS 19, IFRS 3, IFRS 17, IFRS 5, IFRS 15).","es":""}},{"id":"S5","text":{"fr":"","en":"No exclusion: apply IAS 38 and then check the definition of an intangible asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000043","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"SOFTWARE","tested_point":"KEY_TERMS_MEANING","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS38.000006","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000006","section_id":"consumption-terms"},"references":["IAS 38 §8","IAS 38 §97","IAS 38 §101","IAS 38 §102","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"Match each IAS 38 term with the explanation that fits it (teaching paraphrases).","es":""},"explanation":{"fr":"","en":"Approach: link each term to its explanation. The depreciable amount is cost less residual value (IAS 38, para. 101); amortisation spreads that amount systematically over the useful life (IAS 38, para. 97); the residual value is the amount obtainable from disposing of a similar asset at the end of its useful life (IAS 38, para. 102); the carrying amount is the amount on the balance sheet after accumulated amortisation and impairment losses; the impairment loss is the reduction of the carrying amount to the recoverable amount (IAS 36, para. 59). The price originally paid is cost, not requested here. Trap: confusing amortisation and impairment loss. Rule to remember: amortisation and impairment loss are two distinct notions (IAS 38, para. 97) and (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Confusing depreciable amount with cost, or amortisation with impairment loss.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Depreciable amount","es":""}},{"id":"L2","text":{"fr":"","en":"Amortisation","es":""}},{"id":"L3","text":{"fr":"","en":"Residual value","es":""}},{"id":"L4","text":{"fr":"","en":"Carrying amount","es":""}},{"id":"L5","text":{"fr":"","en":"Impairment loss","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Cost less residual value","es":""}},{"id":"R2","text":{"fr":"","en":"Systematic allocation of the depreciable amount over the useful life","es":""}},{"id":"R3","text":{"fr":"","en":"Net amount the entity would obtain today from the asset if it were already at the end of its useful life","es":""}},{"id":"R4","text":{"fr":"","en":"Amount in the statement of financial position after deducting accumulated amortisation and impairment losses","es":""}},{"id":"R5","text":{"fr":"","en":"Excess of the carrying amount over the recoverable amount","es":""}},{"id":"R6","text":{"fr":"","en":"Price originally paid to acquire the asset","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"},{"left":"L5","right":"R5"}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000044","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"KEY_TERMS_CHAIN_CALCULATION","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IAS38.000006","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000006","section_id":"numeric-example"},"references":["IAS 38 §97","IAS 38 §100","IAS 38 §101","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"On 1 January N the channel Ondéa acquires exclusive broadcasting rights to a series. A platform has contractually committed to buy these rights from it at the end of year 6. Teaching assumption: straight-line amortisation. Calculate the amounts requested.","es":""},"explanation":{"fr":"","en":"Approach: 1) the buy-back commitment from a third party supports a residual value of 60,000 (IAS 38, para. 100); 2) depreciable amount: 300,000 − 60,000 = 240,000 (IAS 38, para. 101); 3) annual amortisation: 240,000 ÷ 6 = 40,000 (IAS 38, para. 97); 4) carrying amount at the end of N+2: 300,000 − 3 × 40,000 = 180,000; 5) impairment loss: 180,000 − 165,000 = 15,000 (IAS 36, para. 59). Trap: amortising the full cost, i.e. 50,000 per year. Rule to remember: amortisation applies to the depreciable amount, after deducting the residual value (IAS 38, para. 101).","es":""},"common_error":{"fr":"","en":"Amortising the full cost (50,000 per year) and forgetting the residual value, which distorts the whole chain.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the rights","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Buy-back price agreed with the platform","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"6","unit":"YEARS"},{"label":{"fr":"","en":"Recoverable amount at 31 December N+2 (end of year 3)","es":""},"value":"165000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Depreciable amount","es":""},"answer":240000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Annual amortisation","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Carrying amount at 31 December N+2, before the impairment test","es":""},"answer":180000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Impairment loss to recognise","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Depreciable amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the rights","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Buy-back price agreed with the platform","es":""},"value":60000,"unit":"EUR"}],"result":240000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Annual amortisation","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Depreciable amount","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":6,"unit":"YEARS"}],"result":40000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Carrying amount at 31 December N+2, before the impairment test","es":""},"expression":"a - 3 * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the rights","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual amortisation","es":""},"value":40000,"unit":"EUR"}],"result":180000,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Impairment loss to recognise","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at 31 December N+2, before the impairment test","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount at 31 December N+2 (end of year 3)","es":""},"value":165000,"unit":"EUR"}],"result":15000,"unit":"EUR"}],"rationale":{"fr":"","en":"amortisation applies to the depreciable amount, after deducting the residual value (IAS 38, para. 101).","es":""},"references":["REF.IAS38.97","REF.IAS38.100","REF.IAS38.101","REF.IAS36.59"]}},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000045","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.KEY_TERMS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"PHARMA","tested_point":"RESEARCH_VS_DEVELOPMENT_ACTIVITIES","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000006","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000006","section_id":"research-development"},"references":["IAS 38 §8","IAS 38 §56","IAS 38 §59"],"exercise":{"prompt":{"fr":"","en":"The Medora laboratory carries out the activities below. Classify each one as research or development.","es":""},"explanation":{"fr":"","en":"Approach: for each activity, check whether it aims to acquire knowledge or compare alternatives (research, IAS 38, para. 56) or builds, designs or tests a solution already selected (development, IAS 38, para. 59). I1 and I2 are research; a pilot plant of non-viable size (I3), moulds using new technology (I4) and the prototype of the selected device (I5) are development. Trap: classifying every advanced laboratory activity as development without checking whether an alternative has been selected. Rule to remember: comparing alternatives is research and testing a selected solution is development (IAS 38, paras. 56 and 59).","es":""},"common_error":{"fr":"","en":"Classifying any \"advanced\" laboratory activity as development without checking whether an alternative has already been chosen.","es":""},"format":"CLASSIFICATION","categories":[{"id":"RESEARCH","text":{"fr":"","en":"Research","es":""}},{"id":"DEVELOPMENT","text":{"fr":"","en":"Development","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Exploring new families of molecules to better understand a disease","es":""},"category":"RESEARCH"},{"id":"I2","text":{"fr":"","en":"Comparing three possible processes for making an active ingredient before choosing one","es":""},"category":"RESEARCH"},{"id":"I3","text":{"fr":"","en":"Building and operating a pilot plant on a scale that is not commercially viable","es":""},"category":"DEVELOPMENT"},{"id":"I4","text":{"fr":"","en":"Designing moulds involving new technology for an injector","es":""},"category":"DEVELOPMENT"},{"id":"I5","text":{"fr":"","en":"Building and testing the prototype of the chosen inhaler device","es":""},"category":"DEVELOPMENT"}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000046","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.KEY_TERMS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"KEY_TERMS_CONFUSIONS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS38.000006","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000006","section_id":"pitfalls"},"references":["IAS 38 §8","IAS 38 §100","IAS 38 §101","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"The operator Telvo is training a new analyst. Here are his notes on IAS 38 vocabulary. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Approach: check each note against the paragraph that defines the term. S2 is wrong: residual value is presumed to be zero, unless a third party has committed to buy or an active market is likely to exist (IAS 38, para. 100). S3 is wrong too: an impairment loss is measured against recoverable amount; it is not the amortisation charge (IAS 36, para. 59). S4 is wrong as well: fair value is defined by reference to IFRS 13 (IAS 38, para. 8). S1 and S5 are correct. Trap: using a common-sense residual value with no commitment or active market. Effect on the financial statements: an unjustified residual value lowers the charge and overstates the carrying amount. Rule to remember: without a third-party commitment or a likely active market, residual value is presumed to be zero (IAS 38, para. 100).","es":""},"common_error":{"fr":"","en":"Using a \"common sense\" residual value with no third-party commitment and no active market.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The depreciable amount of our billing licence is its cost less its residual value.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"As the licence will still have value in 5 years, we use a default residual value of 20% of cost.","es":""},"erroneous":true,"correction":{"fr":"","en":"Residual value is presumed to be zero, unless a third party has committed to buy or there is an active market likely to still exist at the end of the useful life (IAS 38, para. 100).","es":""}},{"id":"S3","text":{"fr":"","en":"The impairment loss for the year is simply the amortisation charge for the year.","es":""},"erroneous":true,"correction":{"fr":"","en":"An impairment loss is the excess of the carrying amount over the recoverable amount; it may come on top of amortisation (IAS 36, para. 59).","es":""}},{"id":"S4","text":{"fr":"","en":"The fair value of our licences is defined by IAS 38 itself, independently of any other standard.","es":""},"erroneous":true,"correction":{"fr":"","en":"IAS 38 defines fair value by reference to IFRS 13 (IAS 38, para. 8).","es":""}},{"id":"S5","text":{"fr":"","en":"The notion of active market used by IAS 38 comes from Appendix A of IFRS 13.","es":""},"erroneous":false}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000047","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"KEY_TERMS_CHAIN_ORDER","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS38.000006","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000006","section_id":"chain"},"references":["IAS 38 §97","IAS 38 §101"],"exercise":{"prompt":{"fr":"","en":"Complete the chain of IAS 38 terms.","es":""},"explanation":{"fr":"","en":"Approach: follow the chain. Start from cost; after deducting the residual value, you get the depreciable amount (IAS 38, para. 101); amortisation spreads it systematically over the useful life (IAS 38, para. 97). Trap: confusing amortisation, which follows a plan, with impairment, which results from a test. Rule to remember: cost less residual value gives the depreciable amount, which amortisation spreads over the useful life (IAS 38, paras. 97 and 101).","es":""},"common_error":{"fr":"","en":"Confusing amortisation, which follows a plan, with impairment, which results from a test.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Start from {{start}}; after deducting the residual value, you obtain {{base}}, which {{allocation}} allocates systematically over the useful life.","es":""},"blanks":[{"id":"start","mode":"CHOICE","choices":[{"id":"COST","text":{"fr":"","en":"the cost","es":""}},{"id":"FAIR_VALUE","text":{"fr":"","en":"the fair value","es":""}},{"id":"CARRYING","text":{"fr":"","en":"the recoverable amount","es":""}}],"answer":"COST"},{"id":"base","mode":"CHOICE","choices":[{"id":"DEPRECIABLE","text":{"fr":"","en":"the depreciable amount","es":""}},{"id":"CARRYING","text":{"fr":"","en":"the carrying amount","es":""}},{"id":"IMPAIRMENT","text":{"fr":"","en":"the impairment loss","es":""}}],"answer":"DEPRECIABLE"},{"id":"allocation","mode":"CHOICE","choices":[{"id":"AMORTISATION","text":{"fr":"","en":"amortisation","es":""}},{"id":"IMPAIRMENT","text":{"fr":"","en":"impairment","es":""}},{"id":"REVALUATION","text":{"fr":"","en":"revaluation","es":""}}],"answer":"AMORTISATION"}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000048","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"EXPENSE_VS_ASSET_VS_GOODWILL","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IAS38.000010","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"principle"},"references":["IAS 38 §27","IAS 38 §68","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"The retail chain Vivéo incurs the following expenditure. Classify each item according to its treatment.","es":""},"explanation":{"fr":"","en":"Approach: for each expenditure, ask whether it is part of the cost of an asset that meets the criteria, or incurred for future benefits with no recognisable asset. Opening poster campaign, setting up a subsidiary, cashier training and network reorganisation are expenses (IAS 38, para. 69). The purchase price and directly attributable fees of a recognised asset form its cost (IAS 38, paras. 27 and 68). An item acquired in a business combination that cannot be recognised separately forms part of goodwill (IAS 38, para. 68). Trap: capitalising training because it accompanies a capitalised software. Rule to remember: an expenditure is an expense unless it is part of the cost of a recognisable asset or of goodwill in a business combination (IAS 38, para. 68).","es":""},"common_error":{"fr":"","en":"Capitalising training because it accompanies capitalised software, or expensing the item acquired in a business combination.","es":""},"format":"CLASSIFICATION","categories":[{"id":"EXPENSE","text":{"fr":"","en":"Expense","es":""}},{"id":"ASSET","text":{"fr":"","en":"Cost of an intangible asset","es":""}},{"id":"GOODWILL","text":{"fr":"","en":"Part of goodwill","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Billboard campaign for a store opening","es":""},"category":"EXPENSE"},{"id":"I2","text":{"fr":"","en":"Legal costs of setting up a subsidiary","es":""},"category":"EXPENSE"},{"id":"I3","text":{"fr":"","en":"Training cashiers on the new till software","es":""},"category":"EXPENSE"},{"id":"I4","text":{"fr":"","en":"Purchase price of a separately acquired brand that meets the recognition criteria","es":""},"category":"ASSET"},{"id":"I5","text":{"fr":"","en":"Fees directly attributable to preparing a capitalised software licence","es":""},"category":"ASSET"},{"id":"I6","text":{"fr":"","en":"On the purchase of a competing chain, an acquired intangible item that cannot be recognised separately","es":""},"category":"GOODWILL"},{"id":"I7","text":{"fr":"","en":"Reorganisation of the store network in the southern region","es":""},"category":"EXPENSE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000049","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AUTOMOTIVE","tested_point":"ADVERTISING_ENTRY","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS38.000010","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"entries"},"references":["IAS 38 §69","IAS 38 §69A"],"exercise":{"prompt":{"fr":"","en":"In November N, the agency of the car dealership Autelia runs a radio campaign for the launch of a new model. The invoice of 25,000, received on 30 November, will be paid in January N+1. Record the November N entry.","es":""},"explanation":{"fr":"","en":"Approach: 1) advertising is an expense (IAS 38, para. 69); 2) the service is received when the agency performs it, here in November (IAS 38, para. 69A), even though payment is only made in January; 3) entry: debit Advertising and promotion 25,000, credit Suppliers 25,000. Trap: waiting for payment to recognise the expense, or capitalising because the model will sell for several years. Rule to remember: advertising is an expense as soon as the service is received, whatever the settlement date (IAS 38, paras. 69 and 69A).","es":""},"common_error":{"fr":"","en":"Waiting for payment to recognise the expense, or capitalising it because the model will sell for several years.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ADVERTISING_EXPENSE","text":{"fr":"","en":"Advertising and promotion (expense)","es":""}},{"id":"INTANGIBLE_ASSET","text":{"fr":"","en":"Intangible assets","es":""}},{"id":"PREPAYMENTS","text":{"fr":"","en":"Prepayments","es":""}},{"id":"TRADE_PAYABLES","text":{"fr":"","en":"Trade payables","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"L1","account":"ADVERTISING_EXPENSE","side":"DEBIT","amount":25000},{"id":"L2","account":"TRADE_PAYABLES","side":"CREDIT","amount":25000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000050","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TELECOM","tested_point":"PREPAYMENT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000010","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"prepayments"},"references":["IAS 38 §69A","IAS 38 §70"],"exercise":{"prompt":{"fr":"","en":"On 15 December N, the operator Nexitel pays 18,000 to a provider to train its technicians in fibre; the sessions will take place in February N+1. Year-end is 31 December. Record the entry that appears in the accounts at 31 December N.","es":""},"explanation":{"fr":"","en":"Approach: 1) on 15 December the training has not yet been delivered: the service will be received when the provider runs the sessions, in February N+1 (IAS 38, para. 69A); 2) payment that precedes receipt is recognised as an asset (IAS 38, para. 70): debit Prepayments 18,000, credit Cash 18,000. Trap: expensing the training as soon as it is paid, or capitalising it because it will serve later years. Rule to remember: a prepayment remains an asset until the service is received, then becomes an expense (IAS 38, para. 70).","es":""},"common_error":{"fr":"","en":"Expensing the training on payment, or capitalising it because it will benefit the following years.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"PREPAYMENTS","text":{"fr":"","en":"Prepayments","es":""}},{"id":"TRAINING_EXPENSE","text":{"fr":"","en":"Training (expense)","es":""}},{"id":"INTANGIBLE_ASSET","text":{"fr":"","en":"Intangible assets","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"L1","account":"PREPAYMENTS","side":"DEBIT","amount":18000},{"id":"L2","account":"CASH","side":"CREDIT","amount":18000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000051","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"LAUNCH_BUDGET_SPLIT","difficulty":"INTERMEDIATE","estimated_time_s":300,"lesson_id":"LS.IAS38.000010","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"launch-budget"},"references":["IAS 38 §69","IAS 38 §69A","IAS 38 §70"],"exercise":{"prompt":{"fr":"","en":"The clothing chain Lunéa is opening a store and launching a collection. Year-end is 31 December N. Using the expenditure below, calculate the amounts requested.","es":""},"explanation":{"fr":"","en":"Approach: 1) classify each expenditure as an expense (start-up, pre-opening, catalogues, advertising; IAS 38, para. 69); 2) date it: catalogues accessible and design performed in N, hence expenses of N; the March page and the unmanufactured samples are prepaid (IAS 38, paras. 69A and 70). Expenses: 9,000 + 14,000 + 22,000 + 16,000 = 61,000; prepayments: 7,000 + 5,000 = 12,000; intangible asset: 0. Trap: deferring the catalogues to N+1 (expenses understated at 39,000). Rule to remember: the expense follows access to the goods or receipt of the services, not their use (IAS 38, para. 69A).","es":""},"common_error":{"fr":"","en":"Deferring the catalogues to N+1 because they are mailed in January (expenses of N then understated at 39,000).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Legal costs of setting up the subsidiary (October N)","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"Pre-opening costs of the store (November N)","es":""},"value":"14000","unit":"EUR"},{"label":{"fr":"","en":"Catalogues printed by 15 December N, deliverable on demand against payment, mailed in January N+1","es":""},"value":"22000","unit":"EUR"},{"label":{"fr":"","en":"Campaign design by the agency, completed in December N","es":""},"value":"16000","unit":"EUR"},{"label":{"fr":"","en":"Advertising page paid in December N for the March N+1 issue of a magazine","es":""},"value":"7000","unit":"EUR"},{"label":{"fr":"","en":"Samples paid in December N, to be made by the supplier in January N+1","es":""},"value":"5000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Expenses of N","es":""},"answer":61000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Prepayments recognised as assets at 31 December N","es":""},"answer":12000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Amount recognised as intangible assets","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Expenses of N","es":""},"expression":"a + b + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Legal costs of setting up the subsidiary (October N)","es":""},"value":9000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Pre-opening costs of the store (November N)","es":""},"value":14000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Catalogues printed by 15 December N, deliverable on demand against payment, mailed in January N+1","es":""},"value":22000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Campaign design by the agency, completed in December N","es":""},"value":16000,"unit":"EUR"}],"result":61000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Prepayments recognised as assets at 31 December N","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Advertising page paid in December N for the March N+1 issue of a magazine","es":""},"value":7000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Samples paid in December N, to be made by the supplier in January N+1","es":""},"value":5000,"unit":"EUR"}],"result":12000,"unit":"EUR"}],"rationale":{"fr":"","en":"the expense follows access to the goods or receipt of the services, not their use (IAS 38, para. 69A).","es":""},"references":["REF.IAS38.69","REF.IAS38.69A","REF.IAS38.70"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000052","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"SOFTWARE","tested_point":"EXPENSE_ITEMS_PRESSURE_TO_CAPITALISE","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IAS38.000010","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"pitfalls"},"references":["IAS 38 §29","IAS 38 §67","IAS 38 §68","IAS 38 §69","IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"The CFO of Cloudrix wants to improve the profit for N. Analyse his proposals.","es":""},"explanation":{"fr":"","en":"Approach: 1) for each proposal, ask whether the expenditure is part of the cost of an asset meeting the criteria; training and relocation are not (IAS 38, paras. 67 and 69); 2) the item acquired in a business combination and not separately recognisable goes to goodwill (IAS 38, para. 68); 3) a past expense is not reinstated (IAS 38, para. 71). Trap: confusing the hope of future benefits with the existence of an asset. Effect on the financial statements: 95,000 of expenses reduce profit for N and are not on the balance sheet. Rule to remember: preparing for the future is not enough to capitalise an expenditure (IAS 38, paras. 68 and 69).","es":""},"common_error":{"fr":"","en":"Confusing the expectation of future benefits with the existence of a recognisable asset.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"The online software publisher Cloudrix has had a busy year. It brought into service a customer relationship management tool, recognised as an intangible asset, and trained its teams on that tool (35,000). It moved its development team to a new campus (60,000). It bought the start-up Datavo, one of whose acquired intangible items cannot be recognised separately. The CFO proposes to \"capitalise everything that prepares the future\".","es":""},"parts":[{"prompt":{"fr":"","en":"How should the 35,000 of training on the tool be treated?","es":""},"explanation":{"fr":"","en":"Staff training is an expense (IAS 38, para. 69) and does not enter the cost of an intangible asset, even when it accompanies going into service (IAS 38, para. 67). Rule to remember: training on a capitalised tool remains an expense of the period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Add them to the cost of the capitalised tool","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adds training to the cost of the tool because it accompanies going into service. But staff training is excluded from the cost of an intangible asset (IAS 38, para. 67): it serves to use the asset, not to bring it to working condition. It is an expense (IAS 38, para. 69). Rule to remember: what prepares users does not enter the cost of the asset.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise them as expenses of N","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Spread them over the useful life of the tool","es":""},"correct":false,"feedback":{"fr":"","en":"This answer spreads the training over the tool's useful life, which amounts to making it an asset. But training is expressly cited among expenditure incurred for future benefits that creates no recognisable asset: it is an expense (IAS 38, para. 69). Spreading it is therefore not allowed by this rule. Rule to remember: training expenditure is not spread over several periods.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"True or false? The 60,000 of relocation costs for the development team can be capitalised, because they improve future productivity.","es":""},"explanation":{"fr":"","en":"Approach: expenditure on relocating or reorganising all or part of an entity is an expense (IAS 38, para. 69). The argument of future productivity does not change this treatment. Rule to remember: relocating or reorganising a team is an expense, even if future gains are expected (IAS 38, para. 69).","es":""},"common_error":{"fr":"","en":"Capitalising a relocation in the name of future gains: relocating a team is an expense.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"How should the Datavo intangible item that cannot be recognised separately be treated?","es":""},"explanation":{"fr":"","en":"An item acquired in a business combination that cannot be recognised as an intangible asset forms part of the goodwill recognised at the acquisition date (IAS 38, para. 68, exception b). Rule to remember: the expenditure is neither an expense nor a separate asset; it feeds goodwill (IAS 38, para. 68).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an expense at the acquisition date","es":""},"correct":false,"feedback":{"fr":"","en":"This answer expenses the item at the acquisition date. But paragraph 68 provides an exception for exactly this case: an item acquired in a business combination that cannot be recognised as an intangible asset forms part of the goodwill at the acquisition date (IAS 38, para. 68). There is no expense. Rule to remember: exception (b) of paragraph 68 directs this item to goodwill.","es":""}},{"id":"B","text":{"fr":"","en":"In the goodwill recognised at the acquisition date","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As a separate intangible asset","es":""},"correct":false,"feedback":{"fr":"","en":"This answer makes it a separate intangible asset, whereas by assumption the item cannot be recognised separately. In that case it forms part of goodwill recognised at the acquisition date (IAS 38, para. 68). The fact that the item was acquired is not enough to put it on the balance sheet under a separate heading. Rule to remember: an acquired item that cannot be recognised separately has no stand-alone existence on the balance sheet.","es":""}}],"id":"P3","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"True or false? If the training and relocation expensed in N prove very profitable, Cloudrix may reinstate them as an asset in N+1.","es":""},"explanation":{"fr":"","en":"Approach: even if the training and the relocation turn out to be profitable, they were expensed in N. An expenditure initially recognised as an expense is not later included in the cost of an intangible asset (IAS 38, para. 71). Trap: believing that profitability observed later justifies a catch-up. Rule to remember: a past expense is not reinstated as an asset (IAS 38, para. 71).","es":""},"common_error":{"fr":"","en":"Reinstating in N+1 year N costs that proved profitable: a past expense is not added to an intangible asset's cost.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P4","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000053","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"RETAIL","tested_point":"EXPENSE_TIMING_ERRORS","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IAS38.000010","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"timing"},"references":["IAS 38 §69","IAS 38 §69A","IAS 38 §70"],"exercise":{"prompt":{"fr":"","en":"The accounting department of the retailer Maïra is preparing the 31 December N closing. Spot the incorrect statements in its memo.","es":""},"explanation":{"fr":"","en":"Approach: date each expenditure by access to the goods or receipt of the service. S1 is wrong: the catalogues are accessible in December, the expense belongs to December (IAS 38, para. 69A). S4 is wrong too: the prepayment ceases to be an asset as soon as the service is received, at the trade fair (IAS 38, para. 70). S5 is wrong as well: advertising is an expense, however long its effects last (IAS 38, para. 69). S2 and S3 are correct. Trap: linking the expense to use (mailing, broadcast, orders) rather than to access or receipt. Rule to remember: the expense follows access to the goods or receipt of the service (IAS 38, paras. 69A and 70).","es":""},"common_error":{"fr":"","en":"Linking the expense to use (mailing, broadcasting, orders) rather than to access or receipt.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The catalogues printed in December, which we can demand in return for payment, will be expensed when mailed to customers in January.","es":""},"erroneous":true,"correction":{"fr":"","en":"The expense is recognised as soon as the entity has access to the goods, i.e. in December (IAS 38, para. 69A).","es":""}},{"id":"S2","text":{"fr":"","en":"The design of the spring campaign by the agency, completed in December, is a December expense, even though the campaign will run in March.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The 12,000 paid in December for our stand at the March N+1 trade fair is recognised as a prepayment asset at 31 December.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"After the March fair, this prepayment can remain an asset for as long as the fair generates orders.","es":""},"erroneous":true,"correction":{"fr":"","en":"The prepayment ceases to be an asset as soon as the service is received, i.e. at the fair (IAS 38, para. 70).","es":""}},{"id":"S5","text":{"fr":"","en":"Our awareness campaign, which will strengthen the brand for the long term, can be recognised as an intangible asset.","es":""},"erroneous":true,"correction":{"fr":"","en":"Advertising and promotional expenditure is an expense, however long its effects (IAS 38, para. 69).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000054","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"PARTIAL_PREPAYMENT_AIRTIME","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS38.000010","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"prepayments"},"references":["IAS 38 §69","IAS 38 §69A","IAS 38 §70"],"exercise":{"prompt":{"fr":"","en":"On 1 December N, the drinks brand Fizzo pays 24,000 to a television channel for 12 weekly commercials (same price for each commercial, case data). 4 commercials are broadcast in December N, the other 8 in January and February N+1. What is the treatment at 31 December N?","es":""},"explanation":{"fr":"","en":"The broadcasting service is received when the channel performs it (IAS 38, para. 69A): 4 spots × 2,000 = 8,000 of expenses in N. The 8 remaining spots, paid in advance, represent 16,000 in assets until they are broadcast (IAS 38, para. 70). The per-spot split rests on the case fact (identical price). Effect on the financial statements: profit for N bears 8,000 and the balance sheet carries 16,000 of prepayments. Rule to remember: follow performance of the service spot by spot, not the contract as a whole (IAS 38, paras. 69A and 70).","es":""},"common_error":{"fr":"","en":"Reasoning all-or-nothing on the contract instead of following performance of the service commercial by commercial.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Expense of 24,000 in N","es":""},"correct":false,"feedback":{"fr":"","en":"This answer recognises the whole expense on payment. But payment does not trigger the expense: 8 spots have not yet been broadcast at 31 December, the corresponding service is not received and the matching payment remains a prepayment (IAS 38, paras. 69A and 70). Only the 4 spots broadcast in December are received. Rule to remember: the expense follows receipt of the service, not settlement.","es":""}},{"id":"B","text":{"fr":"","en":"Expense of 8,000 in N and prepayment asset of 16,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Prepayment of 24,000 until the end of the campaign in February N+1","es":""},"correct":false,"feedback":{"fr":"","en":"This answer leaves the whole payment in assets until the end of the campaign. But the 4 spots broadcast in December are received in N: the corresponding share, 8,000, ceases to be an asset as soon as the service is received (IAS 38, para. 70). Broadcasting must therefore be tracked spot by spot rather than waiting for the contract to end. Rule to remember: a prepayment is consumed as the service is received.","es":""}},{"id":"D","text":{"fr":"","en":"Intangible asset of 24,000 amortised over the advertising effect","es":""},"correct":false,"feedback":{"fr":"","en":"This answer capitalises the advertising and amortises it over the length of its effect. But advertising is among expenditure incurred for future benefits that creates no recognisable intangible asset (IAS 38, para. 69); the share not yet received can stay in assets, as a prepayment (IAS 38, para. 70). Rule to remember: the duration of an advertising effect does not turn advertising into an intangible asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000055","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"EXPENSE_DECISION_PATH","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS38.000010","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"how-to-apply"},"references":["IAS 38 §68","IAS 38 §69","IAS 38 §69A","IAS 38 §70"],"exercise":{"prompt":{"fr":"","en":"Put in order the course method for treating expenditure related to an intangible item.","es":""},"explanation":{"fr":"","en":"Approach: this order is a teaching choice of the course. 1) See whether the expenditure is part of the cost of an asset that meets the criteria; 2) see whether it is an item acquired in a business combination that cannot be recognised separately (goodwill) (IAS 38, para. 68); 3) failing that, conclude that it is an expense (IAS 38, para. 69); 4) date the expense by access to the goods or performance of the services (IAS 38, para. 69A); 5) recognise a prepayment if settlement precedes that date (IAS 38, para. 70). Trap: starting from the payment date rather than the nature of the expenditure. Rule to remember: deal with the nature of the expenditure first, then its date (IAS 38, paras. 68 to 70).","es":""},"common_error":{"fr":"","en":"Starting from the payment date instead of the nature of the expenditure.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Check whether the expenditure forms part of the cost of an asset that meets the recognition criteria.","es":""}},{"id":"S2","text":{"fr":"","en":"Check whether it is an item acquired in a business combination that cannot be recognised separately (goodwill).","es":""}},{"id":"S3","text":{"fr":"","en":"Otherwise, conclude that it is an expense.","es":""}},{"id":"S4","text":{"fr":"","en":"Date the expense: access to the goods or performance of the services by the supplier.","es":""}},{"id":"S5","text":{"fr":"","en":"If payment precedes that date, recognise a prepayment as an asset until access or receipt.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000056","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"APPLICATION","format":"MATCHING","context":"AUTOMOTIVE","tested_point":"YEAR_END_TREATMENT_BY_SITUATION","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000010","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"prepayments"},"references":["IAS 38 §69","IAS 38 §69A","IAS 38 §70"],"exercise":{"prompt":{"fr":"","en":"The e-bike maker Volto closes its books at 31 December N. Match each situation with its treatment at that date.","es":""},"explanation":{"fr":"","en":"Approach: for each situation, check whether the service was received or access to the goods obtained at 31 December. Training delivered in December is received: expense of N, with a liability until payment (IAS 38, para. 69A). The brochures have not yet been made: payment is a prepayment (IAS 38, para. 70). The video spot made in November is a service received in N: expense of N already settled, whatever the February broadcast (IAS 38, para. 69A). None of them is an intangible asset (IAS 38, para. 69). Trap: confusing payment or broadcast date with the date of receipt. Rule to remember: the timing of the expense depends on receipt of the service, not on payment (IAS 38, para. 69A).","es":""},"common_error":{"fr":"","en":"Confusing the payment or broadcast date with the date the service is received.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Mechanics training delivered in December N, invoiced and paid in January N+1","es":""}},{"id":"L2","text":{"fr":"","en":"Brochures paid in December N, which the printer will produce in January N+1","es":""}},{"id":"L3","text":{"fr":"","en":"Video commercial produced and paid for in November N, posted on social media in February N+1","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Expense of N, with a liability to the supplier","es":""}},{"id":"R2","text":{"fr":"","en":"Prepayment recognised as an asset","es":""}},{"id":"R3","text":{"fr":"","en":"Expense of N, already settled","es":""}},{"id":"R4","text":{"fr":"","en":"Intangible asset","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000058","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS","IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"SOFTWARE","tested_point":"COST_OR_EXPENSE_SORTING","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS38.000007","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"excluded-costs"},"references":["IAS 38 §27","IAS 38 §28","IAS 38 §29","IAS 38 §30"],"exercise":{"prompt":{"fr":"","en":"A furniture manufacturer buys an enterprise resource planning (ERP) software licence. Classify each outlay in the purchase file.","es":""},"explanation":{"fr":"","en":"Approach: for each expenditure, ask whether it is a net purchase price or a cost directly attributable to bringing the asset into working condition. The price after discount, non-recoverable duties, fees, tests and assigned staff enter cost (IAS 38, paras. 27 and 28). Training and overheads are excluded (IAS 38, para. 29). Costs of an asset that is ready but not yet used, such as the two months' hosting while waiting (I8), are no longer included (IAS 38, para. 30). Trap: capitalising the whole project file. Rule to remember: cost comprises the net price and directly attributable costs up to the point the asset can operate (IAS 38, paras. 27 to 30).","es":""},"common_error":{"fr":"","en":"Capitalising everything in the project file, including training and costs after acceptance testing.","es":""},"format":"CLASSIFICATION","categories":[{"id":"COST","text":{"fr":"","en":"Cost of the intangible asset","es":""}},{"id":"EXPENSE","text":{"fr":"","en":"Expense of the period","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Licence price, after a 5% trade discount","es":""},"category":"COST"},{"id":"I2","text":{"fr":"","en":"Non-recoverable import duties","es":""},"category":"COST"},{"id":"I3","text":{"fr":"","en":"Fees of the integrator who configures the ERP","es":""},"category":"COST"},{"id":"I4","text":{"fr":"","en":"Acceptance tests before going live","es":""},"category":"COST"},{"id":"I5","text":{"fr":"","en":"Salaries of in-house IT staff assigned to installation","es":""},"category":"COST"},{"id":"I6","text":{"fr":"","en":"Training of accountants and buyers on the tool","es":""},"category":"EXPENSE"},{"id":"I7","text":{"fr":"","en":"Share of the IT department’s general overheads","es":""},"category":"EXPENSE"},{"id":"I8","text":{"fr":"","en":"Hosting fee for the two months between the end of acceptance testing and the start date set by management","es":""},"category":"EXPENSE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000059","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS","IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"SEPARATE_ACQUISITION_COST_CALCULATION","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IAS38.000007","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"numeric-example"},"references":["IAS 38 §27","IAS 38 §28","IAS 38 §29"],"exercise":{"prompt":{"fr":"","en":"An automotive supplier acquires a computer-aided design software licence. Calculate the cost of the licence and the amount recognised as an expense.","es":""},"explanation":{"fr":"","en":"Approach: 1) net price: 500,000 − 8% = 460,000; 2) cost = 460,000 + 12,000 of non-recoverable duties (IAS 38, para. 27) + 35,000 of fees + 9,000 of tests (IAS 38, para. 28) = 516,000; 3) expenses = 20,000 of training + 15,000 of advertising = 35,000 (IAS 38, para. 29). Recoverable VAT is neither a cost nor an expense. Trap: including recoverable VAT or training, or starting from the list price. Rule to remember: cost starts from the price net of discounts, adds non-refundable duties and directly attributable costs (IAS 38, paras. 27 and 28).","es":""},"common_error":{"fr":"","en":"Including recoverable VAT or training in cost, or starting from the list price.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"List price of the licence","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Trade discount","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Non-recoverable import duties","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable VAT invoiced","es":""},"value":"92000","unit":"EUR"},{"label":{"fr":"","en":"Fees of the consultant in charge of configuration","es":""},"value":"35000","unit":"EUR"},{"label":{"fr":"","en":"Tests that the software works properly","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"Training of engineers","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Advertising announcing the new design offer","es":""},"value":"15000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Purchase price net of the discount","es":""},"answer":460000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of the licence","es":""},"answer":516000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Amount recognised as an expense","es":""},"answer":35000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Amount recognised as an expense","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Training of engineers","es":""},"value":20000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Advertising announcing the new design offer","es":""},"value":15000,"unit":"EUR"}],"result":35000,"unit":"EUR"}],"rationale":{"fr":"","en":"cost starts from the price net of discounts, adds non-refundable duties and directly attributable costs (IAS 38, paras. 27 and 28).","es":""},"references":["REF.IAS38.27","REF.IAS38.28","REF.IAS38.29"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000060","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS","IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"SEPARATE_ACQUISITION_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS38.000007","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"acquisition-entry"},"references":["IAS 38 §24","IAS 38 §27","IAS 38 §28","IAS 38 §29"],"exercise":{"prompt":{"fr":"","en":"A retail chain acquires an e-commerce platform licence and pays in cash: net price EUR 150,000, integration by an external provider EUR 30,000, training of sales teams EUR 10,000. Record the entry.","es":""},"explanation":{"fr":"","en":"Approach: 1) the asset is measured at cost (IAS 38, para. 24): net price 150,000 + integration by an external provider 30,000, a directly attributable cost (IAS 38, paras. 27 and 28) = 180,000; 2) sales team training, 10,000, is an expense (IAS 38, para. 29); 3) credit Cash 190,000. Trap: debiting the asset with 190,000 by including training, or recording it as prepaid expenses. Rule to remember: training does not enter the cost of the acquired asset (IAS 38, para. 29).","es":""},"common_error":{"fr":"","en":"Debiting the asset with 190,000 including training, or recording training as a prepaid expense.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"INTANGIBLE_ASSET","text":{"fr":"","en":"Intangible assets — platform","es":""}},{"id":"TRAINING_EXPENSE","text":{"fr":"","en":"Training expense","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"PREPAID_EXPENSES","text":{"fr":"","en":"Prepaid expenses","es":""}},{"id":"GOODWILL","text":{"fr":"","en":"Goodwill","es":""}}],"lines":[{"id":"L1","account":"INTANGIBLE_ASSET","side":"DEBIT","amount":180000},{"id":"L2","account":"TRAINING_EXPENSE","side":"DEBIT","amount":10000},{"id":"L3","account":"CASH","side":"CREDIT","amount":190000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000061","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS","IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"PHARMA","tested_point":"COST_TABLE_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS38.000007","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"excluded-costs"},"references":["IAS 38 §27","IAS 38 §28","IAS 38 §29","IAS 38 §30"],"exercise":{"prompt":{"fr":"","en":"A laboratory acquires a licence to use a patented manufacturing process. The management controller proposes the cost table below. Spot the incorrect lines.","es":""},"explanation":{"fr":"","en":"Approach: check each line against the cost rules. S3 is wrong: promotion of a new product is excluded (IAS 38, para. 29). S4 is wrong too: administrative and general overheads are excluded (IAS 38, para. 29). S5 is wrong as well: initial losses are not included, capitalisation stopping when the asset can operate as intended (IAS 38, para. 30). S1 and S2 are correct: 760,000 + 18,000 = 778,000 (IAS 38, paras. 27 and 28). Trap: reasoning by project rather than by nature of expenditure. Effect on the financial statements: 778,000 in assets, 205,000 in expenses. Rule to remember: cost comprises the net price and the costs of bringing the asset into condition, not promotion or overheads (IAS 38, paras. 27 to 30).","es":""},"common_error":{"fr":"","en":"Reasoning by project (\"everything linked to the licence\") rather than by nature of the outlay.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Licence price recorded at EUR 760,000, i.e. the list price of EUR 800,000 less the 5% trade discount.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"Fees of the patent attorney to formalise the transfer of rights, needed to use the licence: EUR 18,000, included.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Campaign presenting the new medicine to doctors: EUR 120,000, included because it is linked to the licence.","es":""},"erroneous":true,"correction":{"fr":"","en":"Promotion of a new product is excluded from cost: expense (IAS 38, para. 29).","es":""}},{"id":"S4","text":{"fr":"","en":"Share of head-office management costs: EUR 25,000, included.","es":""},"erroneous":true,"correction":{"fr":"","en":"Administration and general overhead costs are not part of cost (IAS 38, para. 29).","es":""}},{"id":"S5","text":{"fr":"","en":"Losses of the first six months of sales, while sales build up: EUR 60,000, included.","es":""},"erroneous":true,"correction":{"fr":"","en":"Initial operating losses are expenses; capitalisation stops once the asset is capable of operating as intended (IAS 38, para. 30).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000063","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.DEFERRED_PAYMENT"],"dimension":"APPLICATION","format":"TRUE_FALSE","context":"SOFTWARE","tested_point":"DEFERRED_PAYMENT_CASH_PRICE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS38.000007","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"deferred-payment"},"references":["IAS 38 §32"],"exercise":{"prompt":{"fr":"","en":"Case data: a publisher offers an operating licence either for 500,000 in cash or for 540,000 payable in a single instalment in two years, a period that exceeds normal credit terms. The company chooses deferred payment; the licence is not a qualifying asset under IAS 23. True or false: the licence is recognised at 500,000 and the 40,000 difference is recognised as interest expense over the two years.","es":""},"explanation":{"fr":"","en":"Approach: 1) payment is deferred beyond normal credit terms; 2) cost is therefore the cash price equivalent, 500,000; 3) the 40,000 difference from total payments is interest expense over the credit period, the licence not being a qualifying asset under IAS 23 (IAS 38, para. 32). Trap: recording 540,000, confusing the deferred price, which includes financing, with the cost of the asset. Rule to remember: when payment is deferred beyond normal credit terms, cost is the cash price equivalent and the difference is interest (IAS 38, para. 32).","es":""},"common_error":{"fr":"","en":"Recording the licence at 540,000, confusing the deferred price, which includes financing, with the cost of the asset.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000064","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.DEFERRED_PAYMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"DEFERRED_PAYMENT_DISCOUNTING","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS38.000007","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"deferred-payment-example"},"references":["IAS 38 §32"],"exercise":{"prompt":{"fr":"","en":"On 1 January N, a telecom operator acquires a patent on a compression technology. It will pay a single amount of EUR 561,800 on 31 December N+1, whereas normal credit terms are 60 days. The discount rate used is 6% per year (case data). Calculate.","es":""},"explanation":{"fr":"","en":"Approach: 1) cost = 561,800 ÷ 1.06² = 500,000 (IAS 38, para. 32); 2) interest N = 500,000 × 6% = 30,000, liability 530,000; 3) interest N+1 = 530,000 × 6% = 31,800, liability 561,800 settled. Total: 61,800 = 561,800 − 500,000, expensed over the credit period. Effect on the financial statements: the asset is 500,000 and profit bears increasing interest, 30,000 then 31,800. Trap: recording 561,800 or spreading 30,900 per year. Rule to remember: cost is the cash price equivalent and the difference is interest over the credit period (IAS 38, para. 32).","es":""},"common_error":{"fr":"","en":"Recording the patent at EUR 561,800 or spreading interest in equal parts (EUR 30,900 per year).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Single payment on 31 December N+1","es":""},"value":"561800","unit":"EUR"},{"label":{"fr":"","en":"Annual discount rate","es":""},"value":"6","unit":"PERCENT"},{"label":{"fr":"","en":"Credit period","es":""},"value":"2","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of the patent (cash price equivalent)","es":""},"answer":500000,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Interest expense for N","es":""},"answer":30000,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Interest expense for N+1","es":""},"answer":31800,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Cost of the patent (cash price equivalent)","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Single payment on 31 December N+1","es":""},"value":561800,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual discount rate","es":""},"value":6,"unit":"PERCENT"}],"result":500000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Interest expense for N","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the patent (cash price equivalent)","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual discount rate","es":""},"value":6,"unit":"PERCENT"}],"result":30000,"unit":"EUR"}],"rationale":{"fr":"","en":"cost is the cash price equivalent and the difference is interest over the credit period (IAS 38, para. 32).","es":""},"references":["REF.IAS38.32"]}},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000065","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.DEFERRED_PAYMENT"],"dimension":"JOURNAL_ENTRY","format":"MINI_CASE","context":"MEDIA","tested_point":"DEFERRED_PAYMENT_INSTALMENTS_CASE","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS38.000007","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"deferred-payment-entries"},"references":["IAS 38 §32"],"exercise":{"prompt":{"fr":"","en":"Analyse the acquisition paid in instalments and record the entries.","es":""},"explanation":{"fr":"","en":"Approach: 1) payment deferred beyond normal credit terms: cost is the cash price equivalent, 410,000 (IAS 38, para. 32); 2) interest of 20,500 in N and 10,500 in N+1, i.e. 31,000; 3) entry at 31 December N: interest as an expense, then the instalment reducing the liability. Effect on the financial statements: the asset is 410,000 and the 31,000 of interest is spread through profit or loss over the two years. Professional judgement: the 5% rate, a case fact, is the entity's estimate. Rule to remember: the difference between the instalments and the cash price is interest, not part of the cost of the asset (IAS 38, para. 32).","es":""},"common_error":{"fr":"","en":"Adding the interest to the cost of the rights, or taking the total of the instalments, EUR 441,000, as the cost of the asset.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"On 1 January N, the publisher Aurora Media acquires the adaptation rights to a series of novels. The contract provides for two payments of EUR 220,500, on 31 December N and 31 December N+1. Normal industry terms are payment within 45 days. The discount rate used, documented by management, is 5% per year (case data).","es":""},"parts":[{"prompt":{"fr":"","en":"On what basis is the cost of the rights determined?","es":""},"explanation":{"fr":"","en":"Payment is deferred beyond normal terms (45 days): cost is the cash price equivalent, obtained by discounting the instalments (IAS 38, para. 32). Rule to remember: the total of the instalments includes financing and is not the cost of the asset (IAS 38, para. 32).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Total payments, EUR 441,000.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes the total of the instalments, EUR 441,000, as cost. But payment is spread over two years, far beyond the usual 45 days: the total therefore includes a financing cost, EUR 31,000, which is not the cost of the rights (IAS 38, para. 32). Cost is the cash price equivalent, obtained by discounting the instalments. Rule to remember: with deferred payment, cost is the cash price equivalent.","es":""}},{"id":"B","text":{"fr":"","en":"The cash price equivalent, obtained by discounting the payments.","es":""},"correct":true}],"id":"P1","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Calculate the cost of the rights and the interest.","es":""},"explanation":{"fr":"","en":"Approach: 1) cost = 220,500 ÷ 1.05 + 220,500 ÷ 1.05² = 210,000 + 200,000 = 410,000 (IAS 38, para. 32); 2) interest N = 410,000 × 5% = 20,500; liability after the instalment = 410,000 + 20,500 − 220,500 = 210,000; 3) interest N+1 = 210,000 × 5% = 10,500, which clears the second instalment. Check: 20,500 + 10,500 = 31,000 = 441,000 − 410,000. Rule to remember: interest is computed on the outstanding liability for each year (IAS 38, para. 32).","es":""},"common_error":{"fr":"","en":"Recording total payments (441,000) as cost or computing interest on initial cost both years: cost is the cash equivalent and interest follows the outstanding debt.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Payment on 31 December N","es":""},"value":"220500","unit":"EUR"},{"label":{"fr":"","en":"Payment on 31 December N+1","es":""},"value":"220500","unit":"EUR"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"C1","label":{"fr":"","en":"Cost of the rights","es":""},"answer":410000,"tolerance":1,"unit":"EUR"},{"id":"C2","label":{"fr":"","en":"Interest for N","es":""},"answer":20500,"tolerance":1,"unit":"EUR"},{"id":"C3","label":{"fr":"","en":"Remaining liability at 31 December N, after the payment","es":""},"answer":210000,"tolerance":1,"unit":"EUR"},{"id":"C4","label":{"fr":"","en":"Interest for N+1","es":""},"answer":10500,"tolerance":1,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"C2","meaning":{"fr":"","en":"Interest for N","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the rights","es":""},"value":410000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":5,"unit":"PERCENT"}],"result":20500,"unit":"EUR"},{"step":"C4","meaning":{"fr":"","en":"Interest for N+1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Remaining liability at 31 December N, after the payment","es":""},"value":210000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":5,"unit":"PERCENT"}],"result":10500,"unit":"EUR"}],"rationale":{"fr":"","en":"interest is computed on the outstanding liability for each year (IAS 38, para. 32).","es":""},"references":["REF.IAS38.32"]}},{"prompt":{"fr":"","en":"Record the entries at 31 December N: interest for the year, then the first payment.","es":""},"explanation":{"fr":"","en":"Approach: 1) the interest of 20,500 is an expense of the year and increases the liability (IAS 38, para. 32); 2) the instalment of 220,500 reduces the liability and cash. Trap: adding the interest to the cost of the rights. Rule to remember: interest on deferred payment is an expense over the credit period, not an addition to cost (IAS 38, para. 32).","es":""},"common_error":{"fr":"","en":"Adding the interest to the cost of the rights: it is an expense of the year that increases the liability.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"INTEREST_EXPENSE","text":{"fr":"","en":"Interest expense","es":""}},{"id":"PAYABLE","text":{"fr":"","en":"Payables for intangible assets","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"INTANGIBLE_ASSET","text":{"fr":"","en":"Intangible assets — adaptation rights","es":""}}],"lines":[{"id":"L1","account":"INTEREST_EXPENSE","side":"DEBIT","amount":20500},{"id":"L2","account":"PAYABLE","side":"CREDIT","amount":20500},{"id":"L3","account":"PAYABLE","side":"DEBIT","amount":220500},{"id":"L4","account":"CASH","side":"CREDIT","amount":220500,"given":["account","side"]}],"id":"P3","dimension":"JOURNAL_ENTRY"}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000066","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.DEFERRED_PAYMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"ZERO_PERCENT_FINANCING","difficulty":"EXPERT","estimated_time_s":120,"lesson_id":"LS.IAS38.000007","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"judgment"},"references":["IAS 38 §32"],"exercise":{"prompt":{"fr":"","en":"A publisher offers a perpetual licence either for EUR 324,000 in cash or \"at 0%\" in 36 monthly instalments of EUR 10,000 (EUR 360,000 in total). Normal credit terms are 30 days. The company chooses the instalments. What is the treatment?","es":""},"explanation":{"fr":"","en":"The observable cash price, EUR 324,000, is the best measure of the cash price equivalent: it is the cost of the licence (IAS 38, para. 32). The extra EUR 36,000 pays for the payment delay: it is interest expense over the credit period. Professional judgement: financing presented as free may contain an implicit cost. Effect on the financial statements: the asset is EUR 324,000 and profit bears EUR 36,000 of interest over three years. Rule to remember: a commercial '0%' does not prevent separating the cash price from the financing (IAS 38, para. 32).","es":""},"common_error":{"fr":"","en":"Relying on the \"0%\" marketing label instead of comparing with the cash price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Cost of EUR 360,000: the contract mentions no interest.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes EUR 360,000 because the contract mentions no interest. But payment is spread over thirty-six months, far beyond the usual 30 days: the EUR 36,000 difference from the cash price is a financing cost, not part of the cost of the licence (IAS 38, para. 32). The advertised rate is not the test. Rule to remember: compare the deferred price with the cash price, whatever the advertised rate.","es":""}},{"id":"B","text":{"fr":"","en":"Cost of EUR 324,000; the EUR 36,000 difference is interest expense spread over the three years of credit.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Cost of EUR 324,000; the EUR 36,000 difference is an immediate expense in the year of acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer has the right cost, EUR 324,000, but expenses the EUR 36,000 immediately. But the difference from the cash price is recognised as interest expense over the credit period (IAS 38, para. 32), here three years, not all at once at acquisition. Recognising everything in N would overload that year. Rule to remember: interest on deferred payment is spread over the credit period.","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000067","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.BUSINESS_COMBINATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"PHARMA","tested_point":"IPRD_RECOGNISED_EVEN_IF_NOT_BY_ACQUIREE","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IAS38.000008","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000008","section_id":"business-combination-rule"},"references":["IAS 38 §34"],"exercise":{"prompt":{"fr":"","en":"In a business combination, the acquirer can recognise an in-process R&D project of the acquiree only if the acquiree had already recognised it in its own balance sheet.","es":""},"explanation":{"fr":"","en":"Approach: take the acquirer's point of view. It recognises separately from goodwill an in-process R&D project of the acquiree if it meets the definition of an intangible asset (IAS 38, para. 34); what the acquiree had recorded on its own balance sheet is not the test. Trap: carrying over the acquiree's balance sheet. Rule to remember: the acquirer assesses the in-process project against the definition, not against the acquiree's accounting (IAS 38, para. 34).","es":""},"common_error":{"fr":"","en":"Taking over the acquiree's balance sheet instead of reasoning from the acquirer's point of view.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000068","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.BUSINESS_COMBINATION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"BUSINESS_COMBINATION_CRITERIA_MET","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS38.000008","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000008","section_id":"business-combination-rule"},"references":["IAS 38 §21","IAS 38 §33"],"exercise":{"prompt":{"fr":"","en":"A group buys a software publisher that holds licence contracts with its customers and protected source code. Which statement about the recognition criteria for these assets is correct?","es":""},"explanation":{"fr":"","en":"The two para. 21 criteria apply, but in a business combination probability is always considered met and so is reliability for an asset that is separable or arises from contractual or legal rights (IAS 38, paras. 21 and 33).","es":""},"common_error":{"fr":"","en":"Applying to an asset acquired in a business combination the probability demonstration of an internal project, or making its recognition depend on how the acquiree accounted for it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Probability of benefits is always considered met, and so is reliability for assets arising from contractual or legal rights.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The acquirer must demonstrate, for each asset, that future benefits are probable, as for an internal project.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer requires a probability demonstration asset by asset, as for an internal project. In a business combination, fair value already reflects market participants' expectations about the probability of benefits: that criterion is deemed met (IAS 38, para. 33). The acquirer need not demonstrate it separately. Rule to remember: the fair value of an asset acquired in a business combination already includes the probability of benefits.","es":""}},{"id":"C","text":{"fr":"","en":"The assets are recognised only if the publisher had already recognised them at a reliable cost.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer makes recognition depend on prior recording by the acquired publisher. But for the acquirer, cost is fair value at the acquisition date (IAS 38, para. 33); whether or not the acquiree recognised the item is not a condition. The licence contracts and the protected source code are measured at fair value by the acquirer. Rule to remember: the acquirer measures acquired assets at fair value, regardless of the acquiree's balance sheet.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000069","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.IN_PROCESS_RD"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"PHARMA","tested_point":"IPRD_SUBSEQUENT_EXPENDITURE_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS38.000008","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000008","section_id":"in-process-rd-rule"},"references":["IAS 38 §42","IAS 38 §43","IAS 38 §54","IAS 38 §57","IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"A laboratory acquired, in a business combination, a vaccine project in development. Classify the expenditure later incurred on that project.","es":""},"explanation":{"fr":"","en":"Approach: 1) subsequent expenditure on an acquired project follows the R&D rules (IAS 38, para. 42); 2) research (I1) and development not yet meeting the criteria (I2) are expenses (IAS 38, paras. 43 and 54); 3) development meeting the para. 57 criteria (I3, I4) is added to the carrying amount (IAS 38, para. 43); 4) I5 is wrong: an expenditure already expensed is not taken back (IAS 38, para. 71). Trap: adding everything because the project is already on the balance sheet. Rule to remember: recognising an acquired project does not exempt subsequent expenditure from the research / development filter (IAS 38, paras. 42 and 43).","es":""},"common_error":{"fr":"","en":"Adding all expenditure to the project because it is already an asset.","es":""},"format":"CLASSIFICATION","categories":[{"id":"EXPENSE","text":{"fr":"","en":"Expense of the period","es":""}},{"id":"ADD_TO_ASSET","text":{"fr":"","en":"Added to the carrying amount of the project","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Basic studies on a new antigen, with no identified application","es":""},"category":"EXPENSE"},{"id":"I2","text":{"fr":"","en":"Formulation trials carried out before technical feasibility is demonstrated","es":""},"category":"EXPENSE"},{"id":"I3","text":{"fr":"","en":"Pilot batches produced after all development criteria have been demonstrated","es":""},"category":"ADD_TO_ASSET"},{"id":"I4","text":{"fr":"","en":"Final clinical trials, development criteria demonstrated and funding obtained","es":""},"category":"ADD_TO_ASSET"},{"id":"I5","text":{"fr":"","en":"Reinstating as an asset, once the criteria are met, the formulation trials already expensed","es":""},"category":"EXPENSE"}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000070","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.IN_PROCESS_RD"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"IPRD_CARRYING_AMOUNT_CALCULATION","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS38.000008","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000008","section_id":"numeric-example"},"references":["IAS 38 §33","IAS 38 §42","IAS 38 §43","IAS 38 §54","IAS 38 §57"],"exercise":{"prompt":{"fr":"","en":"A carmaker acquired, when buying a start-up, a solid-state battery project, measured at fair value at the acquisition date. The following year, it incurs the expenditure below. The para. 57 criteria are demonstrated on 1 October (case data). Calculate.","es":""},"explanation":{"fr":"","en":"Approach: 1) the project enters the balance sheet at fair value, 1,200,000 (IAS 38, para. 33); 2) research of 150,000 and development outside the criteria of 250,000 are expenses, i.e. 400,000 (IAS 38, paras. 43, 54 and 57); 3) development from October to December, 400,000, is added to the carrying amount (IAS 38, para. 43): 1,200,000 + 400,000 = 1,600,000. Effect on the financial statements: 400,000 of R&D expense to include in the disclosure of research and development expenditure (IAS 38, para. 126). Trap: adding all the expenditure (800,000). Rule to remember: on an acquired project, development expenditure that meets the para. 57 criteria is added to the carrying amount (IAS 38, para. 43).","es":""},"common_error":{"fr":"","en":"Adding 800,000 to the project (all expenditure) or only the whole year’s development expenditure (650,000).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value of the project at the acquisition date","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Research on new electrolytes","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Development January to September (criteria not demonstrated)","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Development October to December (criteria demonstrated)","es":""},"value":"400000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount of the project at year end (before amortisation or impairment)","es":""},"answer":1600000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"R&D expense for the year","es":""},"answer":400000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Carrying amount of the project at year end (before amortisation or impairment)","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the project at the acquisition date","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Development October to December (criteria demonstrated)","es":""},"value":400000,"unit":"EUR"}],"result":1600000,"unit":"EUR","rationale":{"fr":"","en":"development from October to December, 400,000, is added to the carrying amount (IAS 38, para. 43): 1,200,000 + 400,000 = 1,600,000.","es":""}}],"rationale":{"fr":"","en":"on an acquired project, development expenditure that meets the para. 57 criteria is added to the carrying amount (IAS 38, para. 43).","es":""},"references":["REF.IAS38.33","REF.IAS38.43","REF.IAS38.54","REF.IAS38.57"]}},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000071","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.BUSINESS_COMBINATION","IAS38.OTHER_ACQUISITIONS.IN_PROCESS_RD"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"PHARMA","tested_point":"BIOTECH_ACQUISITION_CASE","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS38.000008","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000008","section_id":"judgment"},"references":["IAS 38 §15","IAS 38 §33","IAS 38 §34","IAS 38 §43","IAS 38 §54","IAS 38 §57"],"exercise":{"prompt":{"fr":"","en":"Analyse the acquisition and its aftermath for the acquirer.","es":""},"explanation":{"fr":"","en":"Approach: 1) at acquisition, the patent and the preclinical project meet the definition and are recognised separately from goodwill at fair value, even though NeuroGen had not recorded them (IAS 38, paras. 33 and 34); the team is not controlled (IAS 38, para. 15); 2) afterwards, the project follows the research / development filter: 120,000 expensed, 380,000 added to the project (IAS 38, paras. 43 and 54). Effect on the financial statements: 5,200,000 of intangible assets at acquisition, then 380,000 more; the total R&D expense is disclosed in the notes (IAS 38, para. 126). Rule to remember: the acquirer assesses each acquired item against the definition and fair value, without following the acquiree's treatment (IAS 38, paras. 33 and 34).","es":""},"common_error":{"fr":"","en":"Reasoning from NeuroGen's treatment, which expensed everything, instead of assessing each item from the acquirer's point of view.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"The Medilis group buys 100% of NeuroGen, a biotech specialised in neurodegenerative diseases. NeuroGen has no intangible assets in its balance sheet: all its research and development costs were expensed. Medilis identifies a patent on a molecule (fair value EUR 3,000,000), a preclinical treatment project that meets the definition of an intangible asset according to its documented analysis (fair value EUR 2,200,000) and a team of 25 renowned researchers, with no exclusivity clause.","es":""},"parts":[{"prompt":{"fr":"","en":"Which items does Medilis recognise separately from goodwill?","es":""},"explanation":{"fr":"","en":"The patent and the in-process project meet the definition: Medilis recognises them separately from goodwill, at fair value, even though NeuroGen had not recorded them (IAS 38, paras. 33 and 34). The research team is not controlled for lack of legal protection (IAS 38, para. 15). Rule to remember: a skilled team does not generally constitute an intangible asset (IAS 38, para. 15).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The patent, at EUR 3,000,000.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The preclinical project, at EUR 2,200,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The research team, at the value of their skills.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer recognises the research team for the value of their skills. But a skilled team does not generally provide sufficient control over future benefits (IAS 38, para. 15): the researchers, with no exclusivity clause, can leave. The team's value therefore remains within goodwill. Rule to remember: without a legal right or other means of control, a team's skills are not a separate asset.","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Why is the preclinical project an asset for Medilis, whereas NeuroGen had expensed it?","es":""},"explanation":{"fr":"","en":"The same project is treated differently depending on how it was obtained: internally, research is expensed (IAS 38, para. 54); acquired in a business combination, it is recognised at fair value if it meets the definition, probability of benefits being deemed met (IAS 38, paras. 33 and 34). Rule to remember: how an asset is obtained determines the recognition rules that apply.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because Medilis acquired it in a business combination: it is measured at fair value, and probability of benefits is deemed met.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Because Medilis is correcting an accounting error made by NeuroGen.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer sees the correction of an error by NeuroGen. But NeuroGen made no error: an internally generated project follows the research and development rules, and research is expensed (IAS 38, para. 54). The difference comes from how it was obtained: for the acquirer, the project is measured at fair value in a business combination (IAS 38, paras. 33 and 34). Rule to remember: two different treatments can both be right because the situations differ.","es":""}}],"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"The following year, Medilis pays EUR 120,000 for exploratory studies on a new indication (research) and EUR 380,000 of development incurred after the para. 57 criteria were demonstrated. Record the entry.","es":""},"explanation":{"fr":"","en":"Approach: 1) the EUR 120,000 of exploratory studies is research: expense (IAS 38, para. 54); 2) the EUR 380,000 of development incurred after the criteria were demonstrated is added to the carrying amount of the acquired project (IAS 38, para. 43); 3) credit Cash 500,000. Trap: debiting goodwill. Rule to remember: on an acquired project, research is an expense and development meeting the criteria is added to the project (IAS 38, paras. 43 and 54).","es":""},"common_error":{"fr":"","en":"Debiting goodwill or capitalising the exploratory studies: research is an expense; only development meeting the criteria is added to the project.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"RD_EXPENSE","text":{"fr":"","en":"Research and development expense","es":""}},{"id":"IPRD_ASSET","text":{"fr":"","en":"Intangible assets — project in development","es":""}},{"id":"GOODWILL","text":{"fr":"","en":"Goodwill","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"L1","account":"RD_EXPENSE","side":"DEBIT","amount":120000},{"id":"L2","account":"IPRD_ASSET","side":"DEBIT","amount":380000},{"id":"L3","account":"CASH","side":"CREDIT","amount":500000,"given":["account","side"]}],"id":"P3","dimension":"JOURNAL_ENTRY"}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000072","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.GOVERNMENT_GRANT"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"TRANSPORT","tested_point":"GRANT_TWO_MEASUREMENTS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS38.000009","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"grant-rule"},"references":["IAS 38 §44"],"exercise":{"prompt":{"fr":"","en":"A regional airline receives landing slots free of charge from the State, with an estimated fair value of EUR 800,000. It incurs EUR 15,000 of costs directly attributable to preparing them for use. Complete.","es":""},"explanation":{"fr":"","en":"Approach: 1) fair value option: the asset and the grant are recognised at fair value, EUR 800,000; 2) nominal amount option: the nominal amount is nil, to which directly attributable expenditure is added, EUR 15,000, i.e. 0 + 15,000 (IAS 38, para. 44). Trap: using zero under the nominal amount option and forgetting directly attributable expenditure. Rule to remember: an asset received by grant is measured at fair value, or at a nominal amount plus directly attributable expenditure (IAS 38, para. 44).","es":""},"common_error":{"fr":"","en":"Using zero under the nominal amount option and forgetting directly attributable expenditure.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Fair value option: grant recognised at EUR {{grant}}. Nominal amount option: slots recognised at EUR {{nominal}}.","es":""},"blanks":[{"id":"grant","mode":"NUMBER","answer":800000,"tolerance":0},{"id":"nominal","mode":"NUMBER","answer":15000,"tolerance":0}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000073","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.GOVERNMENT_GRANT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TELECOM","tested_point":"GRANT_FAIR_VALUE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS38.000009","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"grant-entries"},"references":["IAS 38 §44"],"exercise":{"prompt":{"fr":"","en":"The State grants an operator, free of charge, a spectrum licence with a fair value of EUR 2,000,000. The operator applies the fair value option and presents the grant as deferred income (case data). Record the initial recognition entry.","es":""},"explanation":{"fr":"","en":"Approach: 1) under the fair value option, the licence and the grant are recognised at fair value, EUR 2,000,000 (IAS 38, para. 44); 2) debit Intangible assets 2,000,000, credit Government grants (deferred income) 2,000,000. Presentation as deferred income is a case fact. Trap: crediting immediate income of 2,000,000, or recording nothing because the licence is free. Rule to remember: an asset received free by grant is recognised, with the matching grant, at fair value (IAS 38, para. 44).","es":""},"common_error":{"fr":"","en":"Crediting income for the period with EUR 2,000,000 or recording nothing because the licence is free.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"INTANGIBLE_ASSET","text":{"fr":"","en":"Intangible assets — spectrum licence","es":""}},{"id":"DEFERRED_GRANT_INCOME","text":{"fr":"","en":"Government grants — deferred income","es":""}},{"id":"OTHER_INCOME","text":{"fr":"","en":"Other income for the period","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"L1","account":"INTANGIBLE_ASSET","side":"DEBIT","amount":2000000},{"id":"L2","account":"DEFERRED_GRANT_INCOME","side":"CREDIT","amount":2000000}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000074","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.EXCHANGE"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"EXCHANGE_COST_AND_GAIN","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000009","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"exchange-example"},"references":["IAS 38 §45","IAS 38 §47","IAS 38 §113"],"exercise":{"prompt":{"fr":"","en":"A radio station exchanges, with no cash top-up, its rights to broadcast a cycling competition for a licence to exploit a podcast catalogue. The exchange has commercial substance. The fair value of the rights given up is reliable; that of the catalogue is not more clearly evident. Calculate.","es":""},"explanation":{"fr":"","en":"Approach: 1) the exchange has commercial substance and the fair value of the asset given up is reliable: cost is a fair value (IAS 38, para. 45); 2) since that of the catalogue received is not more clearly evident, use that of the rights given up, 310,000 (IAS 38, para. 47); 3) gain = 310,000 − 220,000 = 90,000, in profit or loss, not classified as revenue (IAS 38, para. 113). Trap: using the midpoint of the catalogue range (320,000) or the carrying amount (220,000). Rule to remember: with commercial substance, the cost of the asset received is the fair value of the asset given up, unless that of the asset received is more clearly evident (IAS 38, paras. 45 and 47).","es":""},"common_error":{"fr":"","en":"Using the midpoint of the catalogue range (320,000) or the carrying amount (220,000).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the rights given up","es":""},"value":"220000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the rights given up","es":""},"value":"310000","unit":"EUR"},{"label":{"fr":"","en":"Estimated fair value of the catalogue received","es":""},"value":"280000 – 360000","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of the catalogue received","es":""},"answer":310000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Gain on disposal of the rights given up","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Gain on disposal of the rights given up","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the rights given up","es":""},"value":310000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the rights given up","es":""},"value":220000,"unit":"EUR"}],"result":90000,"unit":"EUR","rationale":{"fr":"","en":"gain = 310,000 − 220,000 = 90,000, in profit or loss, not classified as revenue (IAS 38, para. 113).","es":""}}],"rationale":{"fr":"","en":"with commercial substance, the cost of the asset received is the fair value of the asset given up, unless that of the asset received is more clearly evident (IAS 38, paras. 45 and 47).","es":""},"references":["REF.IAS38.45","REF.IAS38.47","REF.IAS38.113"]}},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000075","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.EXCHANGE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"SOFTWARE","tested_point":"EXCHANGE_NO_COMMERCIAL_SUBSTANCE_ENTRY","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS38.000009","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"exchange-entries"},"references":["IAS 38 §45","IAS 38 §46"],"exercise":{"prompt":{"fr":"","en":"An IT services company exchanges a database licence (original cost EUR 300,000, accumulated amortisation EUR 120,000) for an equivalent licence from another publisher, for identical duration and use. The analysis concludes that the exchange lacks commercial substance. The fair value of both licences is estimated at EUR 260,000. Record the entry.","es":""},"explanation":{"fr":"","en":"Approach: 1) the analysis concludes there is no commercial substance: the cost of the licence received is the carrying amount of the licence given up (IAS 38, paras. 45 and 46); 2) carrying amount = 300,000 − 120,000 = 180,000; 3) entry: debit new licence 180,000 and accumulated amortisation 120,000, credit old licence 300,000. No gain is recognised. Effect on the financial statements: total intangibles stay unchanged at 180,000. Trap: recording 260,000 and a gain of 80,000. Rule to remember: without commercial substance, the asset received takes the carrying amount of the asset given up (IAS 38, para. 45).","es":""},"common_error":{"fr":"","en":"Recording the new licence at EUR 260,000 with an EUR 80,000 gain, although the exchange lacks commercial substance.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"NEW_LICENCE","text":{"fr":"","en":"Intangible assets — new licence","es":""}},{"id":"OLD_LICENCE","text":{"fr":"","en":"Intangible assets — old licence (original cost)","es":""}},{"id":"ACCUMULATED_AMORTISATION","text":{"fr":"","en":"Accumulated amortisation — old licence","es":""}},{"id":"GAIN_ON_DISPOSAL","text":{"fr":"","en":"Gain on disposal of intangible assets","es":""}}],"lines":[{"id":"L1","account":"NEW_LICENCE","side":"DEBIT","amount":180000},{"id":"L2","account":"ACCUMULATED_AMORTISATION","side":"DEBIT","amount":120000},{"id":"L3","account":"OLD_LICENCE","side":"CREDIT","amount":300000,"given":["account","side"]}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000076","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.EXCHANGE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"EXCHANGE_ANALYSIS_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS38.000009","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"commercial-substance"},"references":["IAS 38 §45","IAS 38 §46","IAS 38 §47","IAS 38 §113"],"exercise":{"prompt":{"fr":"","en":"Two operators swap spectrum blocks covering different regions. The CFO of one of them writes the memo below. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Approach: check each note against the rule. S1 is wrong: commercial substance is assessed on the change in future cash flows or in entity-specific value, not on how alike the assets are (IAS 38, para. 46). S3 is wrong too: the reference is the fair value of the asset given up, unless that of the asset received is more clearly evident (IAS 38, para. 47). S5 is wrong as well: a gain on disposal is not revenue (IAS 38, para. 113). S2 and S4 are correct (IAS 38, paras. 45 and 46). Effect on the financial statements: the gain appears outside revenue. Rule to remember: assess commercial substance on cash flows, and the gain on disposal stays outside revenue (IAS 38, paras. 46 and 113).","es":""},"common_error":{"fr":"","en":"Concluding that there is no commercial substance because the two assets look alike (same bandwidth), without examining how future cash flows change.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Both blocks have the same bandwidth: the exchange therefore necessarily lacks commercial substance.","es":""},"erroneous":true,"correction":{"fr":"","en":"Commercial substance is assessed on the change in future cash flows (risk, timing, amount) or entity-specific value; regions with different customer bases may change them significantly (IAS 38, para. 46).","es":""}},{"id":"S2","text":{"fr":"","en":"Entity-specific value is determined using post-tax cash flows.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"We use the fair value of the block received, which is easier for our team to obtain, although that of the block given up is just as reliable.","es":""},"erroneous":true,"correction":{"fr":"","en":"The reference is the fair value of the asset given up, unless that of the asset received is more clearly evident; convenience is not a criterion (IAS 38, para. 47).","es":""}},{"id":"S4","text":{"fr":"","en":"If neither fair value could be measured reliably, the block received would be recorded at the carrying amount of the block given up.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"The gain on the block given up will be presented in revenue.","es":""},"erroneous":true,"correction":{"fr":"","en":"A gain on disposal is recognised in profit or loss but is not classified as revenue (IAS 38, para. 113).","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000077","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.EXCHANGE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"PHARMA","tested_point":"EXCHANGE_RELIABILITY_JUDGMENT_CASE","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS38.000009","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"judgment"},"references":["IAS 38 §45","IAS 38 §46","IAS 38 §47","IAS 38 §113"],"exercise":{"prompt":{"fr":"","en":"Analyse the exchange and determine its treatment.","es":""},"explanation":{"fr":"","en":"Approach: 1) cash flows change profile, from low and regular royalties to higher but riskier margins: commercial substance (IAS 38, para. 46); 2) the patent's fair value is not reliable (wide range, probabilities not assessable) while that of the rights received is and is more clearly evident: cost EUR 640,000 (IAS 38, paras. 45 and 47); 3) gain = 640,000 − 500,000 = EUR 140,000, outside revenue (IAS 38, para. 113). Effect on the financial statements: a gain of EUR 140,000 in profit or loss, outside revenue, and rights recognised at EUR 640,000. Rule to remember: the more clearly evident fair value measures the cost of the asset received (IAS 38, para. 47).","es":""},"common_error":{"fr":"","en":"Taking the carrying amount of the patent given up as cost out of caution, or the midpoint of a wide fair value range, when the fair value of the rights received is more clearly evident.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"The Orvane laboratory transfers to a partner a patent on an excipient (carrying amount EUR 500,000) and receives in exchange exclusive rights to distribute a medical device in Northern Europe. The patent is unique: estimates of its fair value range from EUR 300,000 to EUR 1,200,000 and Orvane cannot reasonably weight these estimates. Comparable distribution rights were recently traded, which allows the fair value of the rights received to be reliably estimated at EUR 640,000. The patent generated low, steady royalties; the distribution rights will provide higher but riskier trading margins.","es":""},"parts":[{"prompt":{"fr":"","en":"Does the exchange have commercial substance?","es":""},"explanation":{"fr":"","en":"Low, regular royalties are replaced by higher but riskier margins: the profile of the cash flows (risk, timing, amount) changes significantly, so the exchange has commercial substance (IAS 38, para. 46). Professional judgement: this assessment rests on the facts of the case and must be documented by the entity. Rule to remember: commercial substance is judged on the change in future cash flows, not on the nature of the assets (IAS 38, para. 46).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: the risk, timing and amount of cash flows change significantly.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No: two intangible assets are exchanged, which by nature excludes commercial substance.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer rules out commercial substance simply because two intangible assets are exchanged. The nature of the assets is not the test: one looks at whether the profile of cash flows (risk, timing, amount) or the entity-specific value changes significantly (IAS 38, para. 46). Here low, regular royalties give way to higher but riskier margins. Rule to remember: commercial substance is measured by the change in cash flows, not by the nature of the assets exchanged.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"What amount should be used as the cost of the rights received?","es":""},"explanation":{"fr":"","en":"The patent's fair value is not reliable: wide range and the probabilities of the estimates cannot be assessed (IAS 38, para. 47). That of the rights received is, and it is more clearly evident: it measures cost, EUR 640,000 (IAS 38, paras. 45 and 47). Rule to remember: when the fair value of the asset received is more clearly evident, it measures cost (IAS 38, para. 47).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"EUR 500,000, the carrying amount of the patent given up.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes the carrying amount of the patent given up, EUR 500,000. But carrying amount is a fallback, reserved for exchanges lacking commercial substance or where neither fair value is reliable (IAS 38, para. 45). Here the exchange has commercial substance and the fair value of the rights received is reliable. Rule to remember: the carrying amount of the asset given up is only a measure of last resort.","es":""}},{"id":"B","text":{"fr":"","en":"EUR 640,000, the fair value of the rights received.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"EUR 750,000, the midpoint of the patent’s fair value range.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes the midpoint of the patent's estimate range, EUR 750,000. But the patent's fair value is not reliable: dispersion is significant and Orvane cannot weight the estimates (IAS 38, para. 47). A midpoint therefore has no probative value. The reliable fair value is that of the rights received. Rule to remember: a simple average of an overly wide range does not give a reliable fair value.","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the gain or loss on disposal of the patent.","es":""},"explanation":{"fr":"","en":"Approach: gain = cost of the rights received 640,000 − carrying amount of the patent given up 500,000 = 140,000, recognised in profit or loss without being classified as revenue (IAS 38, para. 113). Teaching assumption: the proceeds of the patent disposal are measured by the fair value of the rights received. Rule to remember: the gain on disposal is the difference between net proceeds and carrying amount (IAS 38, para. 113).","es":""},"common_error":{"fr":"","en":"Classifying the gain as revenue: the gain on disposal is recognised in profit or loss, but not as revenue.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the rights received","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the patent given up","es":""},"value":"500000","unit":"EUR"}],"steps":[{"id":"C1","label":{"fr":"","en":"Gain on disposal","es":""},"answer":140000,"tolerance":0,"unit":"EUR"}],"id":"P3","dimension":"CALCULATION","formula":{"lines":[{"step":"C1","meaning":{"fr":"","en":"Gain on disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the rights received","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the patent given up","es":""},"value":500000,"unit":"EUR"}],"result":140000,"unit":"EUR","rationale":{"fr":"","en":"Approach: gain = cost of the rights received 640,000 − carrying amount of the patent given up 500,000 = 140,000, recognised in profit or loss without being classified as revenue (IAS 38, para. 113).","es":""}}],"rationale":{"fr":"","en":"the gain on disposal is the difference between net proceeds and carrying amount (IAS 38, para. 113).","es":""},"references":["REF.IAS38.113"]}},{"prompt":{"fr":"","en":"Variant: if the fair value of the rights received were not reliable either, what would their cost be?","es":""},"explanation":{"fr":"","en":"If neither the fair value of the asset received nor that of the asset given up is reliable, cost is the carrying amount of the asset given up, EUR 500,000, with no gain or loss (IAS 38, para. 45). Rule to remember: as a last resort, the asset received takes the carrying amount of the asset given up (IAS 38, para. 45).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"EUR 500,000, with no gain or loss.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Zero: the rights would not be recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer does not recognise the rights for lack of a reliable fair value. The standard does not provide that outcome: where neither fair value is reliable, cost is the carrying amount of the asset given up (IAS 38, para. 45). The rights are therefore recognised, at EUR 500,000. Rule to remember: the absence of a reliable fair value triggers a fallback measure, not non-recognition.","es":""}}],"id":"P4","dimension":"APPLICATION"}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000078","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"TRANSPORT","tested_point":"POLICY_CHOICE_BY_CLASS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000011","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §72","IAS 38 §75","IAS 38 §78","IAS 38 §81"],"exercise":{"prompt":{"fr":"","en":"A transport group is preparing its accounting policies for intangible assets. Classify each proposed decision according to whether IAS 38 allows it.","es":""},"explanation":{"fr":"","en":"Approach: for each decision, ask whether the model is chosen by class and whether an active market exists. Patents at cost and quoted licences revalued (I1) are allowed; keeping everything at cost (I5) also; a licence with no active market stays at cost within a revalued class (I3) (IAS 38, paras. 72 and 81). Revaluing only some quoted licences (I2) or only in years of increase (I6) ignores class-by-class application, and a brand (I4) has no active market (IAS 38, paras. 75 and 78). Trap: believing an expert report replaces an active market. Rule to remember: the revaluation model applies by class and requires an active market (IAS 38, paras. 72 and 75).","es":""},"common_error":{"fr":"","en":"Believing that revaluation is decided asset by asset, or that an expert's report can replace an active market.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ALLOWED","text":{"fr":"","en":"Allowed by IAS 38","es":""}},{"id":"NOT_ALLOWED","text":{"fr":"","en":"Not allowed by IAS 38","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Patents under the cost model and transferable taxi licences, traded on an active market, under the revaluation model","es":""},"category":"ALLOWED"},{"id":"I2","text":{"fr":"","en":"Revalue only the two taxi licences whose price has risen, the other licences in the class, also quoted, staying at cost","es":""},"category":"NOT_ALLOWED"},{"id":"I3","text":{"fr":"","en":"In the revalued class, keep at cost less amortisation and impairment losses a licence from a small town where no active market exists","es":""},"category":"ALLOWED"},{"id":"I4","text":{"fr":"","en":"Revalue the network brand on the basis of an independent valuation report","es":""},"category":"NOT_ALLOWED"},{"id":"I5","text":{"fr":"","en":"Keep all classes at cost, even though an active market exists for the taxi licences","es":""},"category":"ALLOWED"},{"id":"I6","text":{"fr":"","en":"Revalue the taxi licences only in years when market prices rise","es":""},"category":"NOT_ALLOWED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000079","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"COST_MODEL_CARRYING_AMOUNT","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IAS38.000011","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"numeric-example"},"references":["IAS 38 §74","IAS 38 §97","IAS 36 §59","IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"On 1 January N a laboratory acquires a licence to manufacture a medicine, measured under the cost model. At the end of N+2, the arrival of a competing generic is an indication of impairment. Teaching assumptions: straight-line amortisation, zero residual value. Calculate.","es":""},"explanation":{"fr":"","en":"Approach: 1) charge = 480,000 ÷ 8 = 60,000 (IAS 38, para. 97); carrying amount at end N+2 = 480,000 − 3 × 60,000 = 300,000; 2) loss = 300,000 − 240,000 = 60,000 (IAS 36, para. 59); 3) N+3 charge recalculated: 240,000 ÷ 5 remaining years = 48,000 (IAS 36, para. 63); 4) carrying amount at end N+3 = 240,000 − 48,000 = 192,000. Trap: keeping a 60,000 charge in N+3 (carrying amount of 180,000). Rule to remember: after an impairment loss, the future charge is recalculated on the new carrying amount and the remaining life (IAS 36, para. 63).","es":""},"common_error":{"fr":"","en":"Keeping a charge of 60,000 in N+3, which would give a carrying amount of 180,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the licence","es":""},"value":"480000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"8","unit":"YEARS"},{"label":{"fr":"","en":"Recoverable amount at 31/12/N+2","es":""},"value":"240000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount at 31/12/N+2 before the test","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Impairment loss at 31/12/N+2","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Amortisation charge for N+3","es":""},"answer":48000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Carrying amount at 31/12/N+3","es":""},"answer":192000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Impairment loss at 31/12/N+2","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the licence","es":""},"value":480000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":8,"unit":"YEARS"}],"result":60000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Amortisation charge for N+3","es":""},"expression":"a / 5","variables":[{"symbol":"a","meaning":{"fr":"","en":"Recoverable amount at 31/12/N+2","es":""},"value":240000,"unit":"EUR"}],"result":48000,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Carrying amount at 31/12/N+3","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Recoverable amount at 31/12/N+2","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Amortisation charge for N+3","es":""},"value":48000,"unit":"EUR"}],"result":192000,"unit":"EUR"}],"rationale":{"fr":"","en":"after an impairment loss, the future charge is recalculated on the new carrying amount and the remaining life (IAS 36, para. 63).","es":""},"references":["REF.IAS38.97","REF.IAS36.59","REF.IAS36.63"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000080","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TELECOM","tested_point":"COST_MODEL_ENTRIES","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IAS38.000011","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"entries"},"references":["IAS 38 §74","IAS 38 §97","IAS 36 §59","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"On 1 January N a telecom operator acquired network monitoring software for 450,000, amortised on a straight-line basis over 10 years, zero residual value (cost model). At 31 December N+1, after the charge for the year, recoverable amount is estimated at 335,000. Record the entries at 31 December N+1.","es":""},"explanation":{"fr":"","en":"Approach: 1) charge = 450,000 ÷ 10 = 45,000 (IAS 38, para. 97), credited to accumulated amortisation; 2) carrying amount before the test = 450,000 − 2 × 45,000 = 360,000; 3) loss = 360,000 − 335,000 = 25,000, in profit or loss under the cost model (IAS 36, paras. 59 and 60), credited to accumulated impairment. Cost is not changed. Trap: charging the loss against a non-existent revaluation surplus. Rule to remember: under the cost model, the impairment loss goes to profit or loss and is accumulated separately (IAS 38, para. 74) and (IAS 36, para. 60).","es":""},"common_error":{"fr":"","en":"Charging the loss to a revaluation surplus, which does not exist under the cost model, or crediting cost directly.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"AMORT_EXPENSE","text":{"fr":"","en":"Amortisation expense (profit or loss)","es":""}},{"id":"ACC_AMORT","text":{"fr":"","en":"Accumulated amortisation — software","es":""}},{"id":"IMPAIRMENT_LOSS","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}},{"id":"ACC_IMPAIRMENT","text":{"fr":"","en":"Accumulated impairment losses — software","es":""}},{"id":"INTANGIBLE_COST","text":{"fr":"","en":"Intangible assets — software (cost)","es":""}},{"id":"REVALUATION_SURPLUS","text":{"fr":"","en":"Revaluation surplus (equity)","es":""}}],"lines":[{"id":"L1","account":"AMORT_EXPENSE","side":"DEBIT","amount":45000},{"id":"L2","account":"ACC_AMORT","side":"CREDIT","amount":45000,"given":["account","side"]},{"id":"L3","account":"IMPAIRMENT_LOSS","side":"DEBIT","amount":25000},{"id":"L4","account":"ACC_IMPAIRMENT","side":"CREDIT","amount":25000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000081","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"RETAIL","tested_point":"COST_MODEL_FORMULA","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS38.000011","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"A retailer measures its franchise rights under the cost model. Complete the sentence.","es":""},"explanation":{"fr":"","en":"Approach: under the cost model, the carrying amount is cost less accumulated amortisation and accumulated impairment losses; a rise in market price does not change it (IAS 38, para. 74). Trap: applying the logic of revaluation, which routes the increase through OCI, to the cost model. Rule to remember: under the cost model, changes in market price are not reflected in the carrying amount (IAS 38, para. 74).","es":""},"common_error":{"fr":"","en":"Believing that a rise in market price is reflected in the carrying amount under the cost model, as it would be under the revaluation model.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The carrying amount equals cost less accumulated {{first}} and accumulated {{second}}; a rise in the market price of franchises {{market}} that carrying amount.","es":""},"blanks":[{"id":"first","mode":"CHOICE","choices":[{"id":"AMORT","text":{"fr":"","en":"amortisation","es":""}},{"id":"REVAL","text":{"fr":"","en":"revaluations","es":""}},{"id":"GRANTS","text":{"fr":"","en":"grants","es":""}}],"answer":"AMORT"},{"id":"second","mode":"CHOICE","choices":[{"id":"IMPAIRMENT","text":{"fr":"","en":"impairment losses","es":""}},{"id":"SURPLUS","text":{"fr":"","en":"revaluation surpluses","es":""}},{"id":"PROVISIONS","text":{"fr":"","en":"provisions for risks","es":""}}],"answer":"IMPAIRMENT"},{"id":"market","mode":"CHOICE","choices":[{"id":"NOCHANGE","text":{"fr":"","en":"does not change","es":""}},{"id":"INCREASE","text":{"fr":"","en":"increases","es":""}},{"id":"OCI","text":{"fr":"","en":"increases through OCI","es":""}}],"answer":"NOCHANGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000082","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE","IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AUTOMOTIVE","tested_point":"MEASUREMENT_POLICY_REVIEW","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS38.000011","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"pitfalls"},"references":["IAS 38 §72","IAS 38 §74","IAS 38 §75","IAS 38 §78","IAS 38 §107","IAS 38 §108","IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"You are reviewing the draft accounting policy note of an automotive supplier. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Approach: check each note against the model and its basis. S2 is wrong: isolated offers do not form an active market, so revaluation is impossible (IAS 38, paras. 75 and 78). S3 is wrong too: if the class is revalued, all its assets with an active market are revalued (IAS 38, para. 72). S4 is wrong as well: after an impairment loss, the charge is recalculated on the new carrying amount and remaining life (IAS 36, para. 63). S1 and S5 are correct (IAS 38, paras. 74, 107 and 108). Effect on the financial statements: a charge not recalculated distorts profit and the carrying amount of later years. Rule to remember: revaluation requires an active market and applies by class (IAS 38, paras. 72 and 75).","es":""},"common_error":{"fr":"","en":"Taking an isolated offer or a valuation report for an active market, or revaluing only the assets whose value rises within a class.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Patents are measured under the cost model: cost less accumulated amortisation and accumulated impairment losses.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"Design software licences are revalued every year on the basis of offers received from partners.","es":""},"erroneous":true,"correction":{"fr":"","en":"Without an active market, revaluation is impossible: one-off offers are not enough; these licences stay at cost (IAS 38, paras. 75 and 78).","es":""}},{"id":"S3","text":{"fr":"","en":"For the class of operating rights traded on an active market, only the rights whose value has increased are revalued.","es":""},"erroneous":true,"correction":{"fr":"","en":"If the class is revalued, all its assets with an active market are revalued (IAS 38, para. 72).","es":""}},{"id":"S4","text":{"fr":"","en":"After the impairment loss recognised in N on a licence, the charge for later years is kept at its original amount.","es":""},"erroneous":true,"correction":{"fr":"","en":"The future charge is recalculated on the new carrying amount and the remaining useful life (IAS 36, para. 63).","es":""}},{"id":"S5","text":{"fr":"","en":"Brands with an indefinite useful life are not amortised and are tested for impairment annually.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000083","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE","IAS38.MEASUREMENT_MODEL.COST_MODEL","IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"AGRICULTURE","tested_point":"POLICY_CHOICE_ORPHAN_ASSET","difficulty":"EXPERT","estimated_time_s":420,"lesson_id":"LS.IAS38.000011","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"judgment"},"references":["IAS 38 §72","IAS 38 §74","IAS 38 §78","IAS 38 §81"],"exercise":{"prompt":{"fr":"","en":"Analyse the cooperative's choice of measurement model.","es":""},"explanation":{"fr":"","en":"Approach: 1) the model is chosen by class and applies to all assets with an active market (IAS 38, para. 72); 2) the quota with no active market stays at cost less amortisation and impairment losses (IAS 38, para. 81); 3) the brand cannot have an active market (IAS 38, para. 78). Carrying amount of the organic quota: 90,000 − 4 × 9,000 = 54,000. Effect on the financial statements: the revalued quotas call for the disclosures on revalued assets (IAS 38, para. 124). Rule to remember: revaluation applies by class to assets with an active market; the others stay at cost (IAS 38, paras. 72 and 81).","es":""},"common_error":{"fr":"","en":"Reasoning asset by asset, or believing that an asset with no active market prevents revaluing the whole class, or that a valuation report stands in for an active market.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"A dairy cooperative holds a class of 13 production quotas. Twelve relate to standard milk and are traded every week on a regional exchange that publishes prices. The thirteenth relates to a niche organic supply chain: it has not been traded for five years. The cooperative also holds an acquired cheese brand. Management proposes adopting the revaluation model 'for the quotas, and for the brand if possible'.","es":""},"exhibits":[{"title":{"fr":"","en":"Organic quota (case data)","es":""},"body":{"fr":"","en":"Acquisition cost: 90,000; useful life: 10 years; straight-line amortisation for 4 years; zero residual value; no impairment loss.","es":""}}],"parts":[{"prompt":{"fr":"","en":"If the revaluation model is chosen for the class, how should the twelve standard quotas be treated?","es":""},"explanation":{"fr":"","en":"The revaluation model is an accounting policy applied to the whole class: all assets with an active market are revalued (IAS 38, para. 72). Rule to remember: the model is chosen by class, not asset by asset (IAS 38, para. 72).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"All twelve are revalued.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Only those whose price has risen are revalued.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer revalues only the quotas whose price has risen. But the revaluation model applies to all assets in the class with an active market (IAS 38, para. 72): picking those that increase would distort the class's carrying amount. The twelve quoted quotas therefore follow the same rule. Rule to remember: assets in a class are not sorted by the direction of price movement.","es":""}},{"id":"C","text":{"fr":"","en":"The cooperative chooses quota by quota.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer lets the cooperative choose quota by quota. But the model is an accounting policy by class: if the class is revalued, all its assets with an active market are revalued (IAS 38, para. 72). An individual choice would allow revaluing just the quotas that rise. Rule to remember: the measurement model is a class-level choice, not an asset-level one.","es":""}}],"id":"P1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"And the organic quota?","es":""},"explanation":{"fr":"","en":"In a revalued class, an asset with no active market is carried at cost less accumulated amortisation and impairment losses (IAS 38, para. 81). The organic quota, with no trade for five years, is in that position. Professional judgement: the absence of an active market here rests on the facts of the case. Rule to remember: with no active market the asset stays at cost without blocking the revaluation of the others (IAS 38, para. 81).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is revalued on the basis of an independent valuation.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer revalues the organic quota on the basis of a valuation report. A valuation report does not replace an active market: the quota has not been traded for five years, so no active market exists (IAS 38, para. 75). It stays at cost less accumulated amortisation and impairment losses (IAS 38, para. 81). Rule to remember: an expert report is not a substitute for an active market.","es":""}},{"id":"B","text":{"fr":"","en":"It stays at cost less accumulated amortisation and impairment losses.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It prevents the whole class from being revalued.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer makes the organic quota an obstacle to revaluing the whole class. That is not so: the asset with no active market is simply kept at cost less accumulated amortisation and impairment losses (IAS 38, para. 81), while the twelve quoted quotas are revalued (IAS 38, para. 72). An atypical asset does not block the rest of the class. Rule to remember: the exception for an asset with no active market does not call the class's revaluation into question.","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"The cheese brand can be revalued if the quotas are.","es":""},"explanation":{"fr":"","en":"Approach: revaluation requires an active market (IAS 38, para. 75). A brand is a unique asset, for which an active market cannot exist (IAS 38, para. 78): it stays at cost. Rule to remember: brands cannot be revalued, for lack of an active market (IAS 38, para. 78).","es":""},"common_error":{"fr":"","en":"Revaluing the brand because the quotas are revalued: with no possible active market, a brand stays at cost.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Calculate the current carrying amount of the organic quota.","es":""},"explanation":{"fr":"","en":"Approach: 1) annual charge = 90,000 ÷ 10 = 9,000; 2) accumulated amortisation after 4 years = 4 × 9,000 = 36,000; 3) carrying amount = 90,000 − 36,000 = 54,000, the quota remaining at cost (IAS 38, paras. 74 and 81). Rule to remember: at cost, the carrying amount is cost less accumulated amortisation and impairment losses (IAS 38, para. 74).","es":""},"common_error":{"fr":"","en":"Forgetting a year of amortisation or carrying the quota at fair value: it stays at cost less 4 years of amortisation.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Years amortised","es":""},"value":"4","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount","es":""},"answer":54000,"tolerance":0,"unit":"EUR"}],"id":"P4","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Carrying amount","es":""},"expression":"a - (b * (a / c))","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost","es":""},"value":90000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Years amortised","es":""},"value":4,"unit":"YEARS"},{"symbol":"c","meaning":{"fr":"","en":"useful life: 10 years","es":""},"value":10}],"result":54000,"unit":"EUR"}],"rationale":{"fr":"","en":"at cost, the carrying amount is cost less accumulated amortisation and impairment losses (IAS 38, para. 74).","es":""},"references":["REF.IAS38.74","REF.IAS38.81"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000084","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MEDIA","tested_point":"ACTIVE_MARKET_EXISTENCE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS38.000012","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"understand"},"references":["IAS 38 §75","IAS 38 §78"],"exercise":{"prompt":{"fr":"","en":"Classify each intangible asset according to whether an active market can exist for it (in some jurisdictions) or not.","es":""},"explanation":{"fr":"","en":"Approach: for each asset, ask whether it is fungible and regularly traded, or unique. Transferable taxi licences (I1), fishing licences (I2) and production quotas (I3) can have an active market in some jurisdictions. Newspaper titles (I4), film publishing rights (I5), patents (I6) and brands (I7) are unique and cannot have one (IAS 38, para. 78). No active market, no revaluation (IAS 38, para. 75). Trap: believing a much-coveted asset necessarily has an active market. Rule to remember: an active market is rare and presupposes interchangeable assets with public prices (IAS 38, para. 78).","es":""},"common_error":{"fr":"","en":"Thinking that a high-value, much-coveted asset necessarily has an active market.","es":""},"format":"CLASSIFICATION","categories":[{"id":"POSSIBLE","text":{"fr":"","en":"Active market possible","es":""}},{"id":"IMPOSSIBLE","text":{"fr":"","en":"Active market impossible","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Freely transferable taxi licence","es":""},"category":"POSSIBLE"},{"id":"I2","text":{"fr":"","en":"Fishing licence","es":""},"category":"POSSIBLE"},{"id":"I3","text":{"fr":"","en":"Production quota","es":""},"category":"POSSIBLE"},{"id":"I4","text":{"fr":"","en":"Masthead of a regional daily newspaper","es":""},"category":"IMPOSSIBLE"},{"id":"I5","text":{"fr":"","en":"Publishing rights to a film catalogue","es":""},"category":"IMPOSSIBLE"},{"id":"I6","text":{"fr":"","en":"Patent on a video compression process","es":""},"category":"IMPOSSIBLE"},{"id":"I7","text":{"fr":"","en":"Brand of a television channel","es":""},"category":"IMPOSSIBLE"}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000085","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION_INCREASE"],"dimension":"CALCULATION","format":"CALCULATION","context":"FISHING","tested_point":"INCREASE_REVERSING_PL_DECREASE","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS38.000012","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"increase-decrease-rule"},"references":["IAS 38 §85","IAS 38 §107"],"exercise":{"prompt":{"fr":"","en":"A fishing company revalues a transferable fishing licence traded on an active market. Case data: the licence has an indefinite useful life and is not amortised. Last year, a decrease of 30,000 was recognised in profit or loss (there was no revaluation surplus). Calculate how this year's increase is allocated.","es":""},"explanation":{"fr":"","en":"Approach: 1) total increase = 260,000 − 210,000 = 50,000; 2) the increase goes to profit or loss to the extent that it reverses an earlier decrease of the same asset recognised in profit or loss: 30,000; 3) the balance, 20,000, goes to OCI (revaluation surplus) (IAS 38, para. 85). The asset is not amortised (IAS 38, para. 107). Effect on the financial statements: 30,000 of income in profit or loss and 20,000 in revaluation surplus within equity, to be presented with the disclosures on revalued assets (IAS 38, para. 124). Trap: taking everything to OCI. Rule to remember: an increase first reverses in profit or loss the earlier decrease of the same asset, the rest goes to OCI (IAS 38, para. 85).","es":""},"common_error":{"fr":"","en":"Recognising the whole 50,000 increase in OCI, forgetting the previous decrease taken to profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount before revaluation","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Fair value (active market)","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Previous decrease recognised in profit or loss","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total increase","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Portion recognised in profit or loss","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Portion recognised in OCI (revaluation surplus)","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total increase","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value (active market)","es":""},"value":260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount before revaluation","es":""},"value":210000,"unit":"EUR"}],"result":50000,"unit":"EUR"}],"rationale":{"fr":"","en":"an increase first reverses in profit or loss the earlier decrease of the same asset, the rest goes to OCI (IAS 38, para. 85).","es":""},"references":["REF.IAS38.85","REF.IAS38.107"]}},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000086","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION_DECREASE"],"dimension":"CALCULATION","format":"CALCULATION","context":"TRANSPORT","tested_point":"DECREASE_SPLIT_OCI_PL","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS38.000012","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"increase-decrease-rule"},"references":["IAS 38 §86","IAS 38 §107"],"exercise":{"prompt":{"fr":"","en":"A taxi company revalues its class of licences, traded on an active market. Case data: licence no. 7 has an indefinite useful life and is not amortised; its credit revaluation surplus is 35,000. Calculate.","es":""},"explanation":{"fr":"","en":"Approach: 1) total decrease = 180,000 − 120,000 = 60,000; 2) it is charged to OCI up to the credit balance in the revaluation surplus of the same asset, i.e. 35,000; 3) the balance, 25,000, goes to profit or loss (IAS 38, para. 86). The surplus on the other licences (90,000) cannot be used. Since the asset is not amortised (IAS 38, para. 107), no charge comes into play. Effect on the financial statements: licence no. 7's surplus falls to 0 and a 25,000 expense hits profit. Trap: charging the decrease against the class-wide surplus. Rule to remember: a decrease goes to OCI up to the surplus of the same asset, the excess to profit or loss (IAS 38, para. 86).","es":""},"common_error":{"fr":"","en":"Charging the whole decrease against the class's total surplus (125,000), which would remove the 25,000 loss from profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of licence no. 7","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the reporting date","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Revaluation surplus of licence no. 7","es":""},"value":"35000","unit":"EUR"},{"label":{"fr":"","en":"Revaluation surplus of the other licences","es":""},"value":"90000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total decrease","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Portion charged to OCI","es":""},"answer":35000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Portion recognised in profit or loss","es":""},"answer":25000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Revaluation surplus of licence no. 7 afterwards","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total decrease","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of licence no. 7","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value at the reporting date","es":""},"value":120000,"unit":"EUR"}],"result":60000,"unit":"EUR"}],"rationale":{"fr":"","en":"a decrease goes to OCI up to the surplus of the same asset, the excess to profit or loss (IAS 38, para. 86).","es":""},"references":["REF.IAS38.86","REF.IAS38.107"]}},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000087","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION","IAS38.MEASUREMENT_MODEL.REVALUATION_INCREASE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AGRICULTURE","tested_point":"REVALUATION_ELIMINATION_ENTRY","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IAS38.000012","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"entries"},"references":["IAS 38 §75","IAS 38 §80","IAS 38 §85"],"exercise":{"prompt":{"fr":"","en":"On 1 January N a sugar producer acquired for 300,000 a transferable 6-year production quota traded on an active market; it applies the revaluation model. At 31 December N+1, after the charges, accumulated amortisation is 100,000; fair value is 230,000. This is the first revaluation. Method chosen (teaching assumption): elimination of accumulated amortisation against the gross amount. Record the revaluation as a single entry.","es":""},"explanation":{"fr":"","en":"Approach: 1) the carrying amount before revaluation is 300,000 − 100,000 = 200,000; 2) the fair value from the active market is 230,000 (IAS 38, para. 75), hence an increase of 30,000 in OCI, with no earlier decrease in profit or loss (IAS 38, para. 85); 3) by elimination, accumulated amortisation of 100,000 is cleared against the gross amount, which goes from 300,000 to 230,000: net credit of 70,000 (IAS 38, para. 80). Effect on the financial statements: 30,000 goes to the revaluation surplus, without passing through profit or loss. Trap: crediting a gain to profit or loss. Rule to remember: the choice of adjustment method does not change the increase, which stays in OCI (IAS 38, paras. 80 and 85).","es":""},"common_error":{"fr":"","en":"Crediting a revaluation gain to profit or loss, or debiting the asset by 30,000 without clearing accumulated amortisation.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ACC_AMORT","text":{"fr":"","en":"Accumulated amortisation — quotas","es":""}},{"id":"INTANGIBLE","text":{"fr":"","en":"Intangible assets — quotas","es":""}},{"id":"REVAL_SURPLUS","text":{"fr":"","en":"Revaluation surplus (equity, through OCI)","es":""}},{"id":"REVAL_GAIN_PL","text":{"fr":"","en":"Revaluation gain (profit or loss)","es":""}},{"id":"RETAINED","text":{"fr":"","en":"Retained earnings","es":""}}],"lines":[{"id":"L1","account":"ACC_AMORT","side":"DEBIT","amount":100000},{"id":"L2","account":"INTANGIBLE","side":"CREDIT","amount":70000},{"id":"L3","account":"REVAL_SURPLUS","side":"CREDIT","amount":30000}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000088","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"FISHING","tested_point":"SURPLUS_TRANSFER_RETAINED_EARNINGS","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS38.000012","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"after-revaluation"},"references":["IAS 38 §87","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"A transferable fishing licence cost 420,000 and was amortised over 12 years. It was revalued to 400,000 at 31 December N, when it had 8 years of useful life remaining. The entity's accounting policy: annual transfer of the realised surplus to retained earnings. Straight-line amortisation, zero residual value. Record the entries for year N+1 (charge and transfer).","es":""},"explanation":{"fr":"","en":"Approach: 1) charge on the revalued amount, over the remaining life: 400,000 ÷ 8 = 50,000 (IAS 38, para. 97); 2) the charge that would have been computed on cost: 420,000 ÷ 12 = 35,000; 3) realised surplus = 50,000 − 35,000 = 15,000, transferred from the revaluation surplus to retained earnings (IAS 38, para. 87). This transfer does not go through profit or loss. Effect on the financial statements: profit bears the 50,000 charge; the 15,000 transfer takes place within equity. Trap: crediting the 15,000 to other income. Rule to remember: the transfer of the realised surplus goes directly to retained earnings (IAS 38, para. 87).","es":""},"common_error":{"fr":"","en":"Crediting the 15,000 to 'other income', which would run the transfer through profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"AMORT_EXPENSE","text":{"fr":"","en":"Amortisation expense (profit or loss)","es":""}},{"id":"ACC_AMORT","text":{"fr":"","en":"Accumulated amortisation — licences","es":""}},{"id":"REVAL_SURPLUS","text":{"fr":"","en":"Revaluation surplus (equity)","es":""}},{"id":"RETAINED","text":{"fr":"","en":"Retained earnings","es":""}},{"id":"OTHER_INCOME","text":{"fr":"","en":"Other income (profit or loss)","es":""}}],"lines":[{"id":"L1","account":"AMORT_EXPENSE","side":"DEBIT","amount":50000},{"id":"L2","account":"ACC_AMORT","side":"CREDIT","amount":50000,"given":["account","side"]},{"id":"L3","account":"REVAL_SURPLUS","side":"DEBIT","amount":15000},{"id":"L4","account":"RETAINED","side":"CREDIT","amount":15000}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000089","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"REVALUATION_MODEL_LIMITS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000012","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"revaluation-rule"},"references":["IAS 38 §75","IAS 38 §76","IAS 38 §77","IAS 38 §82"],"exercise":{"prompt":{"fr":"","en":"Which statements about the revaluation model are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"A: revaluation after initial recognition at cost (IAS 38, para. 76). C: adjustment provided by IAS 38, para. 77. D: regularity requirement (IAS 38, para. 75). B is wrong (IAS 38, para. 76); E is wrong (IAS 38, para. 82).","es":""},"common_error":{"fr":"","en":"Believing that revaluation lets an entity recognise an intangible that was never recognised, or return to historical cost when the active market disappears.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Revaluation takes place only after initial recognition at cost.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An internally generated brand can be recognised at fair value using this model.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer assumes an internally generated brand can enter the balance sheet at fair value through the revaluation model. But the model does not allow revaluing an intangible that was never recognised, nor recognising it initially at an amount other than its cost (IAS 38, para. 76). A brand has no active market either (IAS 38, para. 78). Rule to remember: revaluation presupposes initial recognition at cost.","es":""}},{"id":"C","text":{"fr":"","en":"If only part of the cost could be capitalised because the criteria were met part-way through, the whole asset may be revalued.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Revaluations must be regular enough that at the reporting date the carrying amount does not differ materially from fair value.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"If the active market disappears, the asset reverts to historical cost less amortisation.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer sends the asset back to historical cost when the active market disappears. That is not the prescribed treatment: the carrying amount is the revalued amount at the date of the last revaluation by reference to the active market, less subsequent accumulated amortisation and impairment losses (IAS 38, para. 82). There is no going back. Rule to remember: without an active market, the last revalued amount is the base, not the original cost.","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000090","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION","IAS38.MEASUREMENT_MODEL.REVALUATION_DECREASE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"ENERGY","tested_point":"ACTIVE_MARKET_DISAPPEARS","difficulty":"EXPERT","estimated_time_s":480,"lesson_id":"LS.IAS38.000012","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"after-revaluation"},"references":["IAS 38 §82","IAS 36 §9","IAS 36 §60","IAS 36 §61"],"exercise":{"prompt":{"fr":"","en":"Analyse the quota's situation after the exchange closes.","es":""},"explanation":{"fr":"","en":"Approach: 1) with no active market, the quota is carried at the last revalued amount, less subsequent amortisation and impairment losses: 320,000 − 40,000 = 280,000 (IAS 38, para. 82); 2) an indication of impairment must be assessed at each reporting date, and the closure of the exchange is to be examined (IAS 36, para. 9); 3) the 70,000 loss is charged to the revaluation surplus up to 50,000, then 20,000 to profit or loss (IAS 36, paras. 60 and 61). Effect on the financial statements: 20,000 of expense in profit or loss, 50,000 in OCI and a revaluation surplus reduced to 0. Rule to remember: with no active market, keep the last revalued amount net of amortisation, and the impairment loss of a revalued asset is charged first to its surplus (IAS 38, para. 82).","es":""},"common_error":{"fr":"","en":"Going back to historical cost, or continuing to revalue using a discounted cash flow model, when the active market disappears.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"An energy producer holds a transferable production quota, measured under the revaluation model. At 31 December N, last revaluation by reference to an active exchange: 320,000, with 8 years of useful life remaining (straight-line amortisation, zero residual value). In N+1 the exchange closes: at 31 December N+1, there is no longer an active market for the quota. The quota's revaluation surplus is 50,000.","es":""},"parts":[{"prompt":{"fr":"","en":"At what amount is the quota measured at 31 December N+1?","es":""},"explanation":{"fr":"","en":"When fair value can no longer be measured by reference to an active market, the carrying amount is the revalued amount at the date of the last revaluation, less subsequent accumulated amortisation and impairment losses (IAS 38, para. 82). Rule to remember: the last revalued amount remains the base; there is no return to cost (IAS 38, para. 82).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the last revalued amount, less subsequent amortisation and impairment losses.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"At a fair value estimated with a discounted cash flow model.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer uses a fair value from discounted cash flows. But revaluation rests on an active market: when it disappears, fair value no longer serves as a basis, and the carrying amount is the last revalued amount, less subsequent amortisation and impairment losses (IAS 38, para. 82). An internal model does not replace it. Rule to remember: with no active market, revaluation does not continue through a model.","es":""}},{"id":"C","text":{"fr":"","en":"At historical cost less accumulated amortisation.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer reverts to historical cost less accumulated amortisation. That step back is not provided for: the carrying amount remains the revalued amount at the date of the last revaluation by reference to the active market, less subsequent amortisation and impairment losses (IAS 38, para. 82). Erasing the past revaluation would ignore the surplus already recognised. Rule to remember: the disappearance of the market does not undo past revaluations.","es":""}}],"id":"P1","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Calculate the carrying amount at 31 December N+1, before any impairment test.","es":""},"explanation":{"fr":"","en":"Approach: annual charge = 320,000 ÷ 8 = 40,000; carrying amount at 31 December N+1 = 320,000 − 40,000 = 280,000 (IAS 38, para. 82). Rule to remember: with no active market, amortise the last revalued amount over the remaining life (IAS 38, para. 82).","es":""},"common_error":{"fr":"","en":"Keeping the last revalued amount without amortising it: with no active market, it is amortised over the remaining life.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Last revalued amount","es":""},"value":"320000","unit":"EUR"},{"label":{"fr":"","en":"Remaining useful life","es":""},"value":"8","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount at 31/12/N+1","es":""},"answer":280000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Carrying amount at 31/12/N+1","es":""},"expression":"a - (a / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Last revalued amount","es":""},"value":320000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Remaining useful life","es":""},"value":8,"unit":"YEARS"}],"result":280000,"unit":"EUR"}],"rationale":{"fr":"","en":"with no active market, amortise the last revalued amount over the remaining life (IAS 38, para. 82).","es":""},"references":["REF.IAS38.82"]}},{"prompt":{"fr":"","en":"At the end of N+1, the entity must assess whether there is any indication of impairment; the closure of the exchange is one of the matters to consider.","es":""},"explanation":{"fr":"","en":"Approach: the entity assesses at each reporting date whether there is an indication of impairment (IAS 36, para. 9). The closure of the exchange is a fact to examine in that context. Professional judgement: concluding that this fact is an indication depends on the circumstances. Rule to remember: at each reporting date, the entity assesses whether there is an indication of impairment (IAS 36, para. 9).","es":""},"common_error":{"fr":"","en":"Ignoring the exchange closure or concluding a loss automatically: at each reporting date the entity assesses, with judgement, whether there is an indicator.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Case data: the test shows a recoverable amount of 210,000. Allocate the impairment loss.","es":""},"explanation":{"fr":"","en":"Approach: 1) loss = 280,000 − 210,000 = 70,000; 2) for a revalued asset, it is treated as a revaluation decrease: 50,000 in OCI, up to the surplus of the same asset; 3) the remaining 20,000 goes to profit or loss (IAS 36, paras. 60 and 61). Rule to remember: the impairment loss of a revalued asset is charged first to its revaluation surplus (IAS 36, para. 61).","es":""},"common_error":{"fr":"","en":"Taking the whole loss to profit or loss on a revalued asset: it is first charged to OCI up to its revaluation surplus.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"280000","unit":"EUR"},{"label":{"fr":"","en":"Revaluation surplus of the quota","es":""},"value":"50000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Loss charged to OCI","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Loss recognised in profit or loss","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"id":"P4","dimension":"CALCULATION"}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000091","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"INDEFINITE_LIFE_MEANING","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS38.000013","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"understand"},"references":["IAS 38 §88","IAS 38 §91","IAS 38 §107","IAS 38 §108"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence about indefinite useful life.","es":""},"explanation":{"fr":"","en":"Approach: 1) a useful life is indefinite when no foreseeable limit applies to the period over which net cash flows are generated, which does not mean infinite (IAS 38, paras. 88 and 91); 2) the asset is not amortised (IAS 38, para. 107); 3) it is tested every year and whenever there is an indication (IAS 38, para. 108). Trap: taking 'indefinite' to mean 'endless'. Rule to remember: an indefinite life means no amortisation but an annual impairment test (IAS 38, paras. 107 and 108).","es":""},"common_error":{"fr":"","en":"Confusing 'indefinite' with 'infinite', or believing that a non-amortised asset is never tested.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"A useful life is indefinite when there is no {{limit}} limit to the period of net cash inflows; the asset is then not {{treatment}}, but it is tested for impairment {{frequency}}.","es":""},"blanks":[{"id":"limit","mode":"CHOICE","choices":[{"id":"FORESEEABLE","text":{"fr":"","en":"foreseeable","es":""}},{"id":"LEGAL","text":{"fr":"","en":"legal","es":""}},{"id":"INFINITE","text":{"fr":"","en":"infinite","es":""}}],"answer":"FORESEEABLE"},{"id":"treatment","mode":"CHOICE","choices":[{"id":"AMORTISED","text":{"fr":"","en":"amortised","es":""}},{"id":"REVALUED","text":{"fr":"","en":"revalued","es":""}},{"id":"DERECOGNISED","text":{"fr":"","en":"derecognised","es":""}}],"answer":"AMORTISED"},{"id":"frequency","mode":"CHOICE","choices":[{"id":"ANNUAL","text":{"fr":"","en":"every year","es":""}},{"id":"FIVE","text":{"fr":"","en":"every five years","es":""}},{"id":"NEVER","text":{"fr":"","en":"only on disposal","es":""}}],"answer":"ANNUAL"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000092","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"ANALYSIS","format":"MATCHING","context":"ENERGY","tested_point":"USEFUL_LIFE_FACTORS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS38.000013","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"factors"},"references":["IAS 38 §90"],"exercise":{"prompt":{"fr":"","en":"Match each fact with the useful-life factor it illustrates.","es":""},"explanation":{"fr":"","en":"Approach: for each fact, find the factor from the paragraph 90 list that it illustrates. A platform ending in 3 years is dependence on other assets (L1); an adopted regulation, sector stability and demand (L2); the announcement of a free service, competitors' actions (L3); the concession expiring, the period of control and legal limits (L4); a new standard, obsolescence (L5). Trap: citing residual value, which feeds the depreciable amount. Rule to remember: useful life is assessed from the varied factors the standard lists (IAS 38, para. 90).","es":""},"common_error":{"fr":"","en":"Taking residual value for a factor in assessing useful life, when it is used to compute the depreciable amount.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"A control module works only with a platform whose support ends in 3 years.","es":""}},{"id":"L2","text":{"fr":"","en":"A regulation already adopted will ban the sale of oil-fired boilers in 6 years.","es":""}},{"id":"L3","text":{"fr":"","en":"A dominant player announces the launch of a free competing service.","es":""}},{"id":"L4","text":{"fr":"","en":"The wind farm operating concession expires in 12 years, with no possible renewal.","es":""}},{"id":"L5","text":{"fr":"","en":"A new technical standard makes the remote meter-reading protocol outdated.","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Dependence on the useful life of other assets","es":""}},{"id":"R2","text":{"fr":"","en":"Stability of the industry and changes in demand","es":""}},{"id":"R3","text":{"fr":"","en":"Expected actions by competitors","es":""}},{"id":"R4","text":{"fr":"","en":"Period of control and legal limits","es":""}},{"id":"R5","text":{"fr":"","en":"Technical or technological obsolescence","es":""}},{"id":"R6","text":{"fr":"","en":"Amount of the residual value","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"},{"left":"L5","right":"R5"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000093","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"RENEWAL_EFFECT_ON_CHARGE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IAS38.000013","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"numeric-example"},"references":["IAS 38 §94","IAS 38 §96","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"On 1 January N a television channel acquires a 5-year broadcasting licence for 900,000, renewable once for 5 years. Teaching assumptions: straight-line amortisation, zero residual value, licence available on 1 January N. Calculate under two assumptions (case data). Assumption 1: renewal as of right for 2,000 in fees; conditions met. Assumption 2: renewal subject to a fee of 700,000.","es":""},"explanation":{"fr":"","en":"Approach: 1) hypothesis 1: renewal is supported and carries no significant cost (2,000), the life is 10 years: 900,000 ÷ 10 = 90,000 per year; carrying amount at end N+1 = 900,000 − 180,000 = 720,000 (IAS 38, paras. 94 and 96); 2) hypothesis 2: the renewal cost of 700,000 is significant, it represents acquiring a new asset: life of 5 years, 900,000 ÷ 5 = 180,000; carrying amount at end N+1 = 900,000 − 360,000 = 540,000 (IAS 38, paras. 96 and 97). Trap: using 10 years in hypothesis 2 because renewal is possible. Rule to remember: a renewal at significant cost does not lengthen the useful life of the original asset (IAS 38, para. 96).","es":""},"common_error":{"fr":"","en":"Using 10 years under assumption 2 on the grounds that renewal is legally possible.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the licence","es":""},"value":"900000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Assumption 1: annual charge","es":""},"answer":90000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Assumption 1: carrying amount at 31/12/N+1","es":""},"answer":720000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Assumption 2: annual charge","es":""},"answer":180000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Assumption 2: carrying amount at 31/12/N+1","es":""},"answer":540000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Assumption 1: annual charge","es":""},"expression":"a / 10","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the licence","es":""},"value":900000,"unit":"EUR"}],"result":90000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Assumption 2: annual charge","es":""},"expression":"a / 5","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the licence","es":""},"value":900000,"unit":"EUR"}],"result":180000,"unit":"EUR"}],"rationale":{"fr":"","en":"a renewal at significant cost does not lengthen the useful life of the original asset (IAS 38, para. 96).","es":""},"references":["REF.IAS38.94","REF.IAS38.96","REF.IAS38.97"]}},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000094","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS","IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"DOCUMENTATION","format":"ERROR_SPOT","context":"RETAIL","tested_point":"RENEWAL_EVIDENCE_AND_COST","difficulty":"ADVANCED","estimated_time_s":210,"lesson_id":"LS.IAS38.000013","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"contractual-rights-rule"},"references":["IAS 38 §94","IAS 38 §96","IAS 38 §104"],"exercise":{"prompt":{"fr":"","en":"A retail chain has acquired a franchise. You are reviewing the working paper on its useful life. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Approach: check each note against paragraphs 94 and 96. S2 is wrong: intention is not enough, evidence is needed that the third party will agree; with 40% refusals, the life is limited to 5 years (IAS 38, paras. 94 and 96). S3 is wrong: a significant renewal cost represents in substance the acquisition of a new asset at the renewal date (IAS 38, para. 96). S1, S4 and S5 are correct (IAS 38, paras. 94 and 104). Effect on the financial statements: an overstated life understates the charge. A change of life is a change in estimate to disclose in the notes if its effect is significant (IAS 38, para. 121). Rule to remember: renewals extend the life only if supported and without significant cost (IAS 38, paras. 94 and 96).","es":""},"common_error":{"fr":"","en":"Using the renewed term because the entity intends to renew, or spreading a significant renewal cost over the existing asset.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Contract term: 5 years, renewable once for 5 years with the franchisor's consent.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The franchisor has refused 40% of renewal requests over the last three years; we nevertheless use 10 years, as we intend to apply for renewal.","es":""},"erroneous":true,"correction":{"fr":"","en":"Intention is not enough: there must be evidence that the third party will give its consent; without that evidence, the life is limited to 5 years (IAS 38, paras. 94 and 96).","es":""}},{"id":"S3","text":{"fr":"","en":"Renewal will cost an entry fee equal to 80% of the initial price; this amount will be added to the cost of the current franchise and amortised over 10 years from inception.","es":""},"erroneous":true,"correction":{"fr":"","en":"A significant renewal cost is in substance the acquisition of a new asset at the renewal date (IAS 38, para. 96).","es":""}},{"id":"S4","text":{"fr":"","en":"The useful life cannot exceed the term of the contractual rights, including renewals that are supported and involve no significant cost.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"The life used will be reviewed at each year-end; any change will be treated as a change in estimate.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000095","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"FINITE_OR_INDEFINITE","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS38.000013","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"example"},"references":["IAS 38 §88","IAS 38 §90","IAS 38 §91","IAS 38 §94","IAS 38 §96"],"exercise":{"prompt":{"fr":"","en":"Based on the facts given (case data), classify each intangible asset according to its useful life.","es":""},"explanation":{"fr":"","en":"Approach: for each asset, look for a factor that sets a foreseeable limit. A non-extendable patent (I1), the foreseeable departure of customers (I3), a regulatory ban (I5) and the end of support (I6) each set one: finite life (IAS 38, paras. 88, 90 and 94). The long-standing brand (I2) and the licence renewable at negligible cost with no limiting factor (I4) can have an indefinite life (IAS 38, paras. 88, 91 and 96), which does not mean infinite. Trap: classing every brand or perpetual licence as indefinite. Rule to remember: the life is indefinite when no foreseeable limit applies to the period of cash flow generation (IAS 38, para. 88).","es":""},"common_error":{"fr":"","en":"Classifying every perpetual licence or every brand as 'indefinite' without examining the limiting factors.","es":""},"format":"CLASSIFICATION","categories":[{"id":"FINITE","text":{"fr":"","en":"Finite life","es":""}},{"id":"INDEFINITE","text":{"fr":"","en":"Indefinite life","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Patent on an active ingredient, protected for 20 years with no possible extension","es":""},"category":"FINITE"},{"id":"I2","text":{"fr":"","en":"Acquired cheese brand, on the market for 150 years, stable market, protection renewable at low cost, normal maintenance sufficient","es":""},"category":"INDEFINITE"},{"id":"I3","text":{"fr":"","en":"Acquired customer list: history shows customers leave after 6 years on average","es":""},"category":"FINITE"},{"id":"I4","text":{"fr":"","en":"Broadcasting licence renewable every 10 years without limit, at negligible cost, always renewed, no foreseeable replacement technology","es":""},"category":"INDEFINITE"},{"id":"I5","text":{"fr":"","en":"Brand of oil-fired boilers whose sale will be banned by regulation in 8 years","es":""},"category":"FINITE"},{"id":"I6","text":{"fr":"","en":"Perpetual software licence whose publisher will end support in 4 years","es":""},"category":"FINITE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000096","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS","IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"APPLICATION","format":"ORDERING","context":"TELECOM","tested_point":"USEFUL_LIFE_METHOD_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000013","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"how"},"references":["IAS 38 §90","IAS 38 §94","IAS 38 §96","IAS 38 §97","IAS 38 §104"],"exercise":{"prompt":{"fr":"","en":"A telecom operator has just acquired a spectrum licence. Put in order the steps for determining its useful life and amortisation charge.","es":""},"explanation":{"fr":"","en":"Approach: this order is a teaching approach, not a mandatory procedure. 1) Note the term of the right and its renewal conditions; 2) examine the factors (IAS 38, para. 90); 3) assess whether renewal is supported and without significant cost (IAS 38, para. 96); 4) adopt a life that does not exceed the term of the rights, shorter if expected use is shorter (IAS 38, para. 94); 5) amortise from the date it is available for use (IAS 38, para. 97); 6) review life and method at least at each reporting date (IAS 38, para. 104). Trap: computing the charge before the life is settled. Rule to remember: set the useful life before computing the charge, then review it at each reporting date (IAS 38, paras. 94, 97 and 104).","es":""},"common_error":{"fr":"","en":"Computing the charge before the useful life has been settled, or not reviewing it at each reporting date.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Note the term of the right and its renewal conditions","es":""}},{"id":"S2","text":{"fr":"","en":"Examine the factors: expected use, technological obsolescence, competition, legal limits","es":""}},{"id":"S3","text":{"fr":"","en":"Assess whether renewal is supported and without significant cost","es":""}},{"id":"S4","text":{"fr":"","en":"Use the shorter of the expected period of use and the term of the right, including supported renewals","es":""}},{"id":"S5","text":{"fr":"","en":"Calculate the charge from the date the licence is available for use","es":""}},{"id":"S6","text":{"fr":"","en":"Document the conclusion and review it at each year-end","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000097","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"DOCUMENTATION","format":"MINI_CASE","context":"FOOD","tested_point":"INDEFINITE_LIFE_JUSTIFICATION","difficulty":"EXPERT","estimated_time_s":480,"lesson_id":"LS.IAS38.000013","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"judgment"},"references":["IAS 38 §90","IAS 38 §91","IAS 38 §96","IAS 38 §97","IAS 38 §107","IAS 38 §108","IAS 38 §109","IAS 38 §110","IAS 36 §10"],"exercise":{"prompt":{"fr":"","en":"Review the justification for the brand's useful life.","es":""},"explanation":{"fr":"","en":"Approach: 1) management's justification rests on 5,000,000 of future relaunch spending, beyond the maintenance level: it cannot support an indefinite life (IAS 38, para. 91); 2) an indefinite life rests on objective factors (age, stable market, low-cost renewal; IAS 38, paras. 90 and 96); 3) it is reviewed each period (IAS 38, para. 109). Effect on the financial statements: no amortisation but an annual test (IAS 36, para. 10), and the reasons for the assessment are disclosed in the notes (IAS 38, para. 122). Rule to remember: an indefinite life cannot rest on spending planned beyond current maintenance (IAS 38, para. 91).","es":""},"common_error":{"fr":"","en":"Basing an indefinite life on future relaunch investment, or no longer reviewing the assessment once an indefinite life has been adopted.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"A food group acquires for 2,000,000 a mineral water brand that has been on the market for 90 years. The market is stable; the brand's legal protection lasts 10 years and can be renewed without limit for modest fees. Management's draft memo concludes on an indefinite useful life 'because the group plans to invest 5,000,000 to relaunch the brand internationally'.","es":""},"parts":[{"prompt":{"fr":"","en":"What is the main flaw in management's justification?","es":""},"explanation":{"fr":"","en":"An indefinite useful life cannot rest on future spending planned beyond the maintenance needed to keep the asset at its current performance level (IAS 38, para. 91). The 5,000,000 international relaunch goes beyond that maintenance. Rule to remember: maintenance at the current level enters the assessment of life, not relaunch spending (IAS 38, para. 91).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It relies on future expenditure beyond the brand's maintenance level.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A brand can never have an indefinite useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer claims that a brand can never have an indefinite life. That is too absolute: a brand can have an indefinite life if no factor sets a foreseeable limit on cash flow generation (IAS 38, paras. 88 and 90). Here the defect lies elsewhere: the justification relies on relaunch spending beyond maintenance (IAS 38, para. 91). Rule to remember: the issue is not the nature of the brand but the reason given.","es":""}},{"id":"C","text":{"fr":"","en":"The 10-year legal protection requires a 10-year life.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer imposes a 10-year life because the legal protection lasts 10 years. But the protection is renewable without limit for modest fees: where there is evidence of renewal without significant cost, the life is not capped by the protection period alone (IAS 38, paras. 94 and 96). The defect in the note lies elsewhere, in the relaunch spending relied on (IAS 38, para. 91). Rule to remember: a right renewable at low cost does not cap the useful life.","es":""}}],"id":"P1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Which items should appear in a sound working paper? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"A solid file documents the life factors (IAS 38, para. 90), the evidence of low-cost renewal (IAS 38, para. 96), maintenance at the current level (IAS 38, para. 91) and the consequences: no amortisation, annual test (IAS 38, paras. 107 and 108). Professional judgement: these elements must be documented. The relaunch plan, beyond maintenance, cannot support the conclusion. Rule to remember: the file supports the conclusion with objective facts, not investment plans (IAS 38, para. 91).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Evidence of the brand's longevity and the stability of demand","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Evidence that the legal protection will be renewed at low cost","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Brand maintenance budget at the current standard of performance","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The international relaunch plan as the main argument","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes the international relaunch plan as the main argument. But that plan represents future spending beyond the brand's maintenance level: an indefinite life cannot rest on it (IAS 38, para. 91). It therefore cannot be the basis of the conclusion in a solid working paper. Rule to remember: future development investments do not support an indefinite life.","es":""}},{"id":"E","text":{"fr":"","en":"The consequence: no amortisation, but an annual impairment test","es":""},"correct":true}],"id":"P2","dimension":"DOCUMENTATION"},{"prompt":{"fr":"","en":"If an indefinite life is used, the assessment no longer needs to be reviewed while the brand is in use.","es":""},"explanation":{"fr":"","en":"The useful life of a non-amortised asset is reviewed each period; moving from indefinite to finite is a change in estimate (IAS 38, para. 109). Trap: believing the initial conclusion is final. Rule to remember: the assessment of an indefinite life is reviewed each period (IAS 38, para. 109).","es":""},"common_error":{"fr":"","en":"Freezing the indefinite-life conclusion: it is reviewed each period, and a change to finite is a change in estimate.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Case data: on 1 January N+3, a new regulation leads to the conclusion that the life is finite, 10 years. The carrying amount is then 1,800,000, after an impairment loss recognised in N+2; the impairment test performed at that date, because the life has become finite, reveals no further loss. Teaching assumptions: straight-line amortisation, zero residual value. Calculate the charge for N+3.","es":""},"explanation":{"fr":"","en":"Approach: 1) moving to a finite life is a change in estimate (IAS 38, para. 109) and an indication of impairment, hence a prior test (IAS 38, para. 110), here with no further loss; 2) the carrying amount of 1,800,000 is amortised over 10 years: 1,800,000 ÷ 10 = 180,000 (IAS 38, para. 97). Rule to remember: after moving to a finite life, amortise the carrying amount over the remaining life (IAS 38, paras. 97 and 109).","es":""},"common_error":{"fr":"","en":"Amortising original cost or skipping the test on the change to finite life: the carrying amount after the test is amortised over the remaining life.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount at 1/1/N+3","es":""},"value":"1800000","unit":"EUR"},{"label":{"fr":"","en":"Remaining useful life","es":""},"value":"10","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Charge for N+3","es":""},"answer":180000,"tolerance":0,"unit":"EUR"}],"id":"P4","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Charge for N+3","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at 1/1/N+3","es":""},"value":1800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Remaining useful life","es":""},"value":10,"unit":"YEARS"}],"result":180000,"unit":"EUR"}],"rationale":{"fr":"","en":"after moving to a finite life, amortise the carrying amount over the remaining life (IAS 38, paras. 97 and 109).","es":""},"references":["REF.IAS38.97","REF.IAS38.109","REF.IAS38.110"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000098","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"UNITS_OF_PRODUCTION_CHARGE","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS38.000014","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"numeric-example"},"references":["IAS 38 §97","IAS 38 §98","IAS 38 §98B"],"exercise":{"prompt":{"fr":"","en":"On 1 January N, an energy company acquires, for EUR 900,000, the right to use a patented drilling technology. The contract limits use to 60,000 drilling hours in total; the plan provides for 18,000 hours in N, 24,000 in N+1, 12,000 in N+2 and 6,000 in N+3 (case data). Nil residual value. Case assumption: the pattern of consumption follows drilling hours and can be estimated reliably. Calculate.","es":""},"explanation":{"fr":"","en":"Approach: 1) cost per hour = 900,000 ÷ 60,000 = EUR 15; 2) N: 18,000 × 15 = 270,000; N+1: 24,000 × 15 = 360,000; 3) carrying amount at end N+1 = 900,000 − 630,000 = 270,000. On a straight-line basis: 900,000 ÷ 4 = 225,000 per year. The contract limits use to a number of hours: this limiting factor is a starting point for the amortisation base (IAS 38, para. 98B), and the units-of-production method follows the pattern of consumption here (IAS 38, paras. 97 and 98). Trap: dividing by 4 years by reflex. Rule to remember: the amortisation method reflects the expected pattern of consumption of the benefits (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Dividing the cost by 4 years out of habit, although the contract and the usage plan show that the benefits are consumed as drilling hours are used.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the right","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Drilling hours allowed","es":""},"value":"60000","unit":"UNITS"},{"label":{"fr":"","en":"Planned hours N / N+1 / N+2 / N+3","es":""},"value":"18000 / 24000 / 12000 / 6000","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost per drilling hour","es":""},"answer":15,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"N charge","es":""},"answer":270000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"N+1 charge","es":""},"answer":360000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Carrying amount at end of N+1","es":""},"answer":270000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"For comparison: annual straight-line charge over 4 years","es":""},"answer":225000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Cost per drilling hour","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the right","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Drilling hours allowed","es":""},"value":60000,"unit":"UNITS"}],"result":15,"unit":"EUR"},{"step":"S5","meaning":{"fr":"","en":"For comparison: annual straight-line charge over 4 years","es":""},"expression":"a / 4","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the right","es":""},"value":900000,"unit":"EUR"}],"result":225000,"unit":"EUR"}],"rationale":{"fr":"","en":"the amortisation method reflects the expected pattern of consumption of the benefits (IAS 38, para. 97).","es":""},"references":["REF.IAS38.97","REF.IAS38.98","REF.IAS38.98B"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000099","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START","IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","format":"CALCULATION","context":"SOFTWARE","tested_point":"START_AVAILABLE_FOR_USE_PRORATA","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IAS38.000014","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"prorata-example"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"On 1 March N, an entity buys a planning software licence for EUR 240,000. Configuration is completed and the software is operational on 1 May N (case data). Useful life 5 years, nil residual value, straight-line, year end 31 December. Teaching assumption: monthly time apportionment. Calculate.","es":""},"explanation":{"fr":"","en":"Approach: 1) amortisation begins when the asset is available for use, here 1 May, not on the purchase date (IAS 38, para. 97); 2) annual charge = 240,000 ÷ 5 = 48,000; 3) N: 48,000 × 8/12 = 32,000 for May to December; carrying amount = 240,000 − 32,000 = 208,000; N+1: 48,000. The monthly pro rata is a teaching assumption. Trap: counting 10 months from purchase. Rule to remember: amortisation starts from availability for use, not from payment or purchase (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Counting 10 months from the purchase date (a charge of EUR 40,000): the purchase does not make the asset available for use.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the licence","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Purchase date","es":""},"value":"01/03/N","unit":"TEXT"},{"label":{"fr":"","en":"Date the software is operational","es":""},"value":"01/05/N","unit":"TEXT"},{"label":{"fr":"","en":"Useful life","es":""},"value":"5","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Number of months amortised in N","es":""},"answer":8,"tolerance":0,"unit":"MONTHS"},{"id":"S2","label":{"fr":"","en":"N charge","es":""},"answer":32000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Carrying amount at 31 December N","es":""},"answer":208000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"N+1 charge","es":""},"answer":48000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Carrying amount at 31 December N","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the licence","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"N charge","es":""},"value":32000,"unit":"EUR"}],"result":208000,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"N+1 charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the licence","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":5,"unit":"YEARS"}],"result":48000,"unit":"EUR"}],"rationale":{"fr":"","en":"amortisation starts from availability for use, not from payment or purchase (IAS 38, para. 97).","es":""},"references":["REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000100","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.METHOD"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"PHARMA","tested_point":"CHARGE_IN_COST_OF_OTHER_ASSET","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS38.000014","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"entry"},"references":["IAS 38 §97","IAS 38 §99"],"exercise":{"prompt":{"fr":"","en":"A laboratory amortises a process patent used solely to manufacture a medicine. The charge for the year is EUR 90,000 (case data). Teaching assumption: all of the year's production is still in inventory at year end, and the charge is recorded directly in production cost. Record the entry; the credit line is given.","es":""},"explanation":{"fr":"","en":"Approach: 1) the 90,000 charge corresponds to benefits consumed to produce a medicine, i.e. another asset; 2) it is therefore included in the cost of that inventory (IAS 38, para. 99): debit Inventory, credit Accumulated amortisation; 3) it will reach profit or loss with cost of sales when the products are sold. Trap: debiting the charge to profit or loss when the products are unsold. Rule to remember: the amortisation of an intangible used in production enters the cost of inventory (IAS 38, para. 99).","es":""},"common_error":{"fr":"","en":"Debiting amortisation expense in profit or loss although the products manufactured have not yet been sold.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"INVENTORY","text":{"fr":"","en":"Inventories – production cost","es":""}},{"id":"AMORTISATION_EXPENSE","text":{"fr":"","en":"Amortisation expense (profit or loss)","es":""}},{"id":"ACCUMULATED_AMORTISATION","text":{"fr":"","en":"Accumulated amortisation – intangible assets","es":""}},{"id":"PATENT","text":{"fr":"","en":"Patents (cost)","es":""}}],"lines":[{"id":"L1","account":"INVENTORY","side":"DEBIT","amount":90000},{"id":"L2","account":"ACCUMULATED_AMORTISATION","side":"CREDIT","amount":90000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000101","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.METHOD"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"METHOD_REFLECTS_PATTERN","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000014","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §97","IAS 38 §98","IAS 38 §98B"],"exercise":{"prompt":{"fr":"","en":"For each asset, classify the amortisation method most consistent with the pattern of consumption described (the patterns are case data).","es":""},"explanation":{"fr":"","en":"Approach: for each asset, look for the described pattern of consumption and the contract's limiting factor. Regular use (I1) and a pattern that cannot be determined reliably (I4): straight-line. Contractual cap on units produced (I2) or broadcasts (I5): units of production. Benefits shown to arise mainly in the early years (I3): diminishing balance (IAS 38, paras. 97, 98 and 98B). These choices follow from the patterns described; they are not imposed in themselves. Trap: choosing straight-line for everything for simplicity. Rule to remember: the amortisation method follows the expected pattern of consumption of the benefits, straight-line applying where no reliable pattern exists (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Choosing straight-line for every asset 'for simplicity', even when a different pattern is demonstrated.","es":""},"format":"CLASSIFICATION","categories":[{"id":"STRAIGHT_LINE","text":{"fr":"","en":"Straight-line","es":""}},{"id":"UNITS","text":{"fr":"","en":"Units of production","es":""}},{"id":"DIMINISHING","text":{"fr":"","en":"Diminishing balance","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Payroll software licence used evenly over 3 years","es":""},"category":"STRAIGHT_LINE"},{"id":"I2","text":{"fr":"","en":"Right to use a process limited by contract to 500,000 units produced, with output varying strongly from year to year","es":""},"category":"UNITS"},{"id":"I3","text":{"fr":"","en":"Technology for which management demonstrates that most of the benefits will be obtained in the early years, before it is overtaken","es":""},"category":"DIMINISHING"},{"id":"I4","text":{"fr":"","en":"Brand with a finite useful life whose pattern of consumption cannot be determined reliably","es":""},"category":"STRAIGHT_LINE"},{"id":"I5","text":{"fr":"","en":"Licence allowing a fixed number of showings of a film, scheduled as the programme grid allows","es":""},"category":"UNITS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000102","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START","IAS38.AMORTISATION.METHOD"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"START_END_METHOD_ERRORS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS38.000014","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97","IAS 38 §104","IAS 38 §117"],"exercise":{"prompt":{"fr":"","en":"A telecom operator has acquired a network management software licence. Here is a staff member's year-end memo. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Approach: test each note against the rule. S1 is wrong: amortisation begins when the software is available for use, on 1 June (IAS 38, para. 97). S3 is wrong too: amortisation stops on classification as held for sale or on derecognition, not during temporary non-use (IAS 38, paras. 97 and 117). S5 is wrong as well: the method follows the expected pattern of consumption, not a profit target (IAS 38, paras. 97 and 104). S2 and S4 are correct. Effect on the financial statements: starting too early or suspending distorts the year's profit. Rule to remember: amortisation starts at availability and stops at IFRS 5 classification or derecognition (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Starting amortisation at signature or suspending it during temporary non-use, or choosing the method according to the profit target rather than the pattern of consumption.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Amortisation starts on 15 March, the contract signing date, although the software is only operational from 1 June.","es":""},"erroneous":true,"correction":{"fr":"","en":"Amortisation starts on 1 June, when the software is available for use (IAS 38, para. 97).","es":""}},{"id":"S2","text":{"fr":"","en":"The straight-line method is used because management cannot reliably estimate any other pattern of consumption.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Amortisation is suspended from October to December, during a server migration that left the software temporarily unused.","es":""},"erroneous":true,"correction":{"fr":"","en":"Amortisation only ceases on classification as held for sale or on derecognition; temporary idleness does not suspend it (IAS 38, paras. 97 and 117).","es":""}},{"id":"S4","text":{"fr":"","en":"The charge is recognised in profit or loss, as the software is not used to produce any other asset.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"The method may be changed every year depending on the group's profit target.","es":""},"erroneous":true,"correction":{"fr":"","en":"The method follows the expected pattern of consumption of the benefits (IAS 38, para. 97); it is changed only if that pattern changes, as a change in estimate (IAS 38, para. 104).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000103","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVENUE_BASED"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"ENERGY","tested_point":"REVENUE_THRESHOLD_EXCEPTION","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS38.000014","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"revenue-based"},"references":["IAS 38 §98A","IAS 38 §98B","IAS 38 §98C"],"exercise":{"prompt":{"fr":"","en":"Analyse the operating right and answer the three questions.","es":""},"explanation":{"fr":"","en":"Approach: 1) revenue from an activity that uses the asset is in principle not an appropriate base: this is a rebuttable presumption, not a prohibition (IAS 38, para. 98A); 2) it is rebutted if the limiting factor is a revenue threshold set by the contract (IAS 38, paras. 98B and 98C); 3) charge N = 30,000,000 × 24,000,000 ÷ 150,000,000 = 4,800,000; carrying amount = 25,200,000. Effect on the financial statements: a charge tied to the station's revenue. Trap: generalising the exception. Rule to remember: the exception applies when the asset is expressed as a measure of revenue or when a close correlation is demonstrated (IAS 38, para. 98A).","es":""},"common_error":{"fr":"","en":"Believing that revenue is always ruled out as an amortisation base, or conversely adopting it because sales are growing.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"On 1 January N, an energy group obtains, for EUR 30,000,000, the right to operate a charging and fuel station on a motorway service area. The contract provides that the right expires as soon as the station's cumulative revenue reaches EUR 150,000,000, however long that takes (case data).","es":""},"exhibits":[{"title":{"fr":"","en":"Budget extract","es":""},"body":{"fr":"","en":"Station revenue for N: EUR 24,000,000. Residual value of the right: nil.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Is a revenue-based amortisation method acceptable here?","es":""},"explanation":{"fr":"","en":"When the right ends on reaching a cumulative amount of revenue, the revenue to be generated can be an appropriate amortisation base (IAS 38, paras. 98B and 98C): this is exception (a) to the rebuttable presumption (IAS 38, para. 98A). Rule to remember: the presumption against revenue is rebuttable, notably when the asset is expressed as a measure of revenue (IAS 38, para. 98A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, IAS 38 prohibits it in all cases","es":""},"correct":false,"feedback":{"fr":"","en":"This answer states that IAS 38 prohibits this method in all cases. But the standard sets a rebuttable presumption, not a prohibition: it is rebutted notably when the asset is expressed as a measure of revenue (IAS 38, para. 98A). Here the right expires once cumulative revenue reaches 150,000,000: revenue is an appropriate amortisation base (IAS 38, para. 98C). Rule to remember: under IAS 38, a revenue-based method is a rebuttable presumption, not an absolute prohibition.","es":""}},{"id":"B","text":{"fr":"","en":"Yes: the predominant limiting factor is a revenue threshold set by the contract; the asset is expressed as a measure of revenue","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes, because management prefers to align the charge with sales","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adopts revenue because management prefers to align the charge with sales. A management preference does not rebut the presumption: it is rebutted only in the cases the standard identifies, when the asset is expressed as a measure of revenue or when revenue and consumption of benefits are closely correlated (IAS 38, para. 98A). The right reason here is the contract's revenue threshold. Rule to remember: the presumption is rebutted by demonstrated facts, not by a preference.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the N charge on a revenue basis, then the carrying amount at the end of N.","es":""},"explanation":{"fr":"","en":"Approach: 1) revenue in N is 24,000,000 ÷ 150,000,000 = 16% of the threshold; 2) charge N = 30,000,000 × 16% = 4,800,000; 3) carrying amount = 30,000,000 − 4,800,000 = 25,200,000 (IAS 38, para. 98C). Rule to remember: when the revenue threshold is the limiting factor, the charge follows the share of the threshold reached (IAS 38, para. 98C).","es":""},"common_error":{"fr":"","en":"Amortising straight-line when the revenue threshold is the limiting factor: amortisation follows the share of the threshold reached in the year.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the right","es":""},"value":"30000000","unit":"EUR"},{"label":{"fr":"","en":"Contractual revenue threshold","es":""},"value":"150000000","unit":"EUR"},{"label":{"fr":"","en":"Revenue for N","es":""},"value":"24000000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"N charge","es":""},"answer":4800000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Carrying amount at end of N","es":""},"answer":25200000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Carrying amount at end of N","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the right","es":""},"value":30000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"N charge","es":""},"value":4800000,"unit":"EUR"}],"result":25200000,"unit":"EUR"}],"rationale":{"fr":"","en":"when the revenue threshold is the limiting factor, the charge follows the share of the threshold reached (IAS 38, para. 98C).","es":""},"references":["REF.IAS38.98C"]}},{"prompt":{"fr":"","en":"If the contract instead set a 12-year term, the entity could still amortise on revenue, merely because its sales are growing steadily.","es":""},"explanation":{"fr":"","en":"Approach: with a fixed term of 12 years, the limiting factor is time (IAS 38, para. 98B). The presumption against revenue then applies and is rebutted only by demonstrating a close correlation between revenue and consumption of the benefits (IAS 38, para. 98A). Steadily rising sales do not demonstrate it. Rule to remember: without a revenue threshold or a demonstrated close correlation, the presumption against revenue stands (IAS 38, para. 98A).","es":""},"common_error":{"fr":"","en":"Amortising on revenue merely because sales grow steadily: with a fixed term, the presumption against revenue is only rebutted by a demonstrated close correlation.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"ANALYSIS"}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000104","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVENUE_BASED"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"MEDIA","tested_point":"REVENUE_PRESUMPTION_REASONS","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS38.000014","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"revenue-based"},"references":["IAS 38 §98A","IAS 38 §98B"],"exercise":{"prompt":{"fr":"","en":"A video game publisher would like to amortise a graphics engine licence in proportion to its games' revenue. Under IAS 38, which factors explain why that revenue poorly reflects the consumption of the licence? (several answers)","es":""},"explanation":{"fr":"","en":"Revenue from an activity using the asset depends on other inputs and processes, selling activities, sales volumes and prices, and inflation, with no direct link to the consumption of the benefits: hence the rebuttable presumption against this method (IAS 38, para. 98A).","es":""},"common_error":{"fr":"","en":"Taking the contractual cap on use of the engine as a reason to reject revenue, or believing that revenue directly measures consumption of the licence.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Changes in the selling prices of the games","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Inflation","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Other inputs and processes (script, studios, marketing)","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Sales volumes and selling activities","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The maximum number of games the contract allows to be developed with the engine","es":""},"correct":false,"feedback":{"fr":"","en":"This answer lists the maximum number of games the contract allows among the reasons for rejecting revenue. But a contractual cap on use is a predominant limiting factor: it can support the amortisation base (IAS 38, para. 98B). It does not explain why revenue reflects consumption poorly, which comes from other inputs, volumes, prices and inflation (IAS 38, para. 98A). Rule to remember: a contractual cap is a possible amortisation base, not a reason to reject revenue.","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"LX.IAS38.000105","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START","IAS38.AMORTISATION.METHOD"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"AMORTISATION_BASICS","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS38.000014","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"Complete the amortisation rule for an asset with a finite useful life.","es":""},"explanation":{"fr":"","en":"Approach: 1) amortisation begins when the asset is available for use, i.e. in the location and condition intended by management; 2) failing a reliable pattern, the straight-line method applies; 3) the charge is recognised in profit or loss unless it is included in the carrying amount of another asset (IAS 38, para. 97). Trap: starting on the purchase or payment date. Rule to remember: start at availability for use, straight-line where there is no reliable pattern, charge in profit or loss unless included in another asset (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Starting amortisation at acquisition or payment, or believing that the charge always goes directly to profit or loss.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Amortisation begins when the asset is {{start}}. If the pattern of consumption of the benefits cannot be determined reliably, the {{method}} method is used. The charge is recognised in {{where}}, unless it is included in the carrying amount of another asset.","es":""},"blanks":[{"id":"start","mode":"CHOICE","choices":[{"id":"AVAILABLE","text":{"fr":"","en":"available for use","es":""}},{"id":"ACQUIRED","text":{"fr":"","en":"acquired or paid for","es":""}},{"id":"USED","text":{"fr":"","en":"actually used for the first time","es":""}}],"answer":"AVAILABLE"},{"id":"method","mode":"CHOICE","choices":[{"id":"STRAIGHT_LINE","text":{"fr":"","en":"straight-line","es":""}},{"id":"DIMINISHING","text":{"fr":"","en":"diminishing balance","es":""}},{"id":"UNITS","text":{"fr":"","en":"units-of-production","es":""}}],"answer":"STRAIGHT_LINE"},{"id":"where","mode":"CHOICE","choices":[{"id":"PROFIT_OR_LOSS","text":{"fr":"","en":"profit or loss","es":""}},{"id":"OCI","text":{"fr":"","en":"other comprehensive income","es":""}},{"id":"EQUITY","text":{"fr":"","en":"equity, directly","es":""}}],"answer":"PROFIT_OR_LOSS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000106","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVIEW"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"PROSPECTIVE_LIFE_REVISION","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS38.000015","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"review-example"},"references":["IAS 38 §104","IAS 38 §100"],"exercise":{"prompt":{"fr":"","en":"On 1 January N, a telecom operator acquired a billing software licence for EUR 900,000, useful life 10 years, nil residual value, straight-line. On 1 January N+4, the announcement of a new platform leads management to cut the remaining life to 4 years (case data). Calculate.","es":""},"explanation":{"fr":"","en":"Approach: 1) initial charge = 900,000 ÷ 10 = 90,000; carrying amount at 1 January N+4 = 900,000 − 4 × 90,000 = 540,000; 2) shortening the life is a change in estimate, applied prospectively (IAS 38, para. 104): 540,000 ÷ 4 = 135,000 per year; 3) carrying amount at end N+5 = 540,000 − 2 × 135,000 = 270,000. Past charges are not changed. A nil residual value reflects the standard's presumption (IAS 38, para. 100). Trap: spreading the original cost over 8 years with a catch-up. Rule to remember: a change in useful life is applied prospectively to the carrying amount (IAS 38, para. 104).","es":""},"common_error":{"fr":"","en":"Allocating the original cost over a total life of 8 years (112,500 a year) and recognising a catch-up for past years.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Original useful life","es":""},"value":"10","unit":"YEARS"},{"label":{"fr":"","en":"Revised remaining life at 1 January N+4","es":""},"value":"4","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount at 1 January N+4","es":""},"answer":540000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"N+4 charge","es":""},"answer":135000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Carrying amount at end of N+5","es":""},"answer":270000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Carrying amount at 1 January N+4","es":""},"expression":"a - b * (a / c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Revised remaining life at 1 January N+4","es":""},"value":4,"unit":"YEARS"},{"symbol":"c","meaning":{"fr":"","en":"Original useful life","es":""},"value":10,"unit":"YEARS"}],"result":540000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"N+4 charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at 1 January N+4","es":""},"value":540000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Revised remaining life at 1 January N+4","es":""},"value":4,"unit":"YEARS"}],"result":135000,"unit":"EUR","rationale":{"fr":"","en":"shortening the life is a change in estimate, applied prospectively (IAS 38, para. 104): 540,000 ÷ 4 = 135,000 per year","es":""}},{"step":"S3","meaning":{"fr":"","en":"Carrying amount at end of N+5","es":""},"expression":"a - 2 * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at 1 January N+4","es":""},"value":540000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"N+4 charge","es":""},"value":135000,"unit":"EUR"}],"result":270000,"unit":"EUR"}],"rationale":{"fr":"","en":"a change in useful life is applied prospectively to the carrying amount (IAS 38, para. 104).","es":""},"references":["REF.IAS38.104","REF.IAS38.100"]}},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000107","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"PHARMA","tested_point":"RESIDUAL_VALUE_DEPRECIABLE_AMOUNT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS38.000015","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"residual-example"},"references":["IAS 38 §100","IAS 38 §101"],"exercise":{"prompt":{"fr":"","en":"On 1 January N, a laboratory acquires the marketing rights to a medicine in a region for EUR 500,000, for 4 years. A partner laboratory has contractually committed to buy back these rights for EUR 100,000 at the end of the fourth year. Straight-line method (case data). Record the N amortisation entry; the credit line is given.","es":""},"explanation":{"fr":"","en":"Approach: 1) the third party's purchase commitment supports a non-nil residual value, 100,000 (IAS 38, para. 100); 2) depreciable amount = 500,000 − 100,000 = 400,000 (IAS 38, para. 101); 3) charge = 400,000 ÷ 4 = 100,000 per year: debit Amortisation expense, credit Accumulated amortisation. Trap: amortising 125,000 per year and ignoring the buy-back commitment. Rule to remember: amortisation applies to cost less residual value, which is non-nil where a third party has committed to buy (IAS 38, paras. 100 and 101).","es":""},"common_error":{"fr":"","en":"Amortising EUR 125,000 a year by ignoring the buy-back commitment, which does justify a residual value.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"AMORTISATION_EXPENSE","text":{"fr":"","en":"Amortisation expense (profit or loss)","es":""}},{"id":"ACCUMULATED_AMORTISATION","text":{"fr":"","en":"Accumulated amortisation – intangible assets","es":""}},{"id":"MARKETING_RIGHTS","text":{"fr":"","en":"Marketing rights (cost)","es":""}},{"id":"OTHER_INCOME","text":{"fr":"","en":"Other income","es":""}}],"lines":[{"id":"L1","account":"AMORTISATION_EXPENSE","side":"DEBIT","amount":100000},{"id":"L2","account":"ACCUMULATED_AMORTISATION","side":"CREDIT","amount":100000,"given":["account","side"]}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000108","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"RESIDUAL_VALUE_PRESUMED_NIL","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS38.000015","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"residual-rule"},"references":["IAS 38 §100","IAS 38 §101"],"exercise":{"prompt":{"fr":"","en":"For each situation (case data), must the residual value of the intangible asset be nil, or may a non-zero value be used?","es":""},"explanation":{"fr":"","en":"Approach: for each situation, look for one of the two exceptions to the presumption of nil residual value: a purchase commitment from a third party (I1), or an active market that allows it to be determined and will probably still exist at the end of the useful life (I2). A mere hope of resale (I3), a market expected to disappear (I4) or use until the end of economic life (I5) leave the value at nil (IAS 38, paras. 100 and 101). Effect on the financial statements: a residual value wrongly adopted lowers the charge and overstates the carrying amount. Trap: adopting a residual value as soon as a market exists today. Rule to remember: residual value is presumed nil, unless a third party has committed to buy or an active market is likely to exist (IAS 38, para. 100).","es":""},"common_error":{"fr":"","en":"Using a residual value as soon as a market exists today, without checking that it will still exist at the end of the useful life.","es":""},"format":"CLASSIFICATION","categories":[{"id":"NIL","text":{"fr":"","en":"Nil residual value","es":""}},{"id":"NON_NIL","text":{"fr":"","en":"Non-zero residual value possible","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"A third party has contractually committed to buy the licence at the end of its useful life","es":""},"category":"NON_NIL"},{"id":"I2","text":{"fr":"","en":"Licences of this type trade in an active market, which allows residual value to be set and will probably still exist at the end of the useful life","es":""},"category":"NON_NIL"},{"id":"I3","text":{"fr":"","en":"The entity hopes to sell its software to a start-up, with no commitment and no market","es":""},"category":"NIL"},{"id":"I4","text":{"fr":"","en":"An active market exists today, but it is expected to disappear before the end of the useful life","es":""},"category":"NIL"},{"id":"I5","text":{"fr":"","en":"The entity intends to use the patent until the end of its economic life","es":""},"category":"NIL"}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000109","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"TRANSPORT","tested_point":"RESIDUAL_VALUE_ABOVE_CARRYING_AMOUNT","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS38.000015","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"residual-review"},"references":["IAS 38 §102","IAS 38 §103"],"exercise":{"prompt":{"fr":"","en":"A transport entity holds a transferable operating licence, traded in an active market meeting the IAS 38 conditions. At 1 January N+3, its carrying amount is EUR 320,000 and its remaining life 2 years. The revised residual value, at current prices in that market, is EUR 340,000 (case data). What is the N+3 charge?","es":""},"explanation":{"fr":"","en":"Residual value (340,000) exceeds the carrying amount (320,000): the charge is nil until residual value falls back below the carrying amount (IAS 38, para. 103). The revision is a change in estimate (IAS 38, para. 102).","es":""},"common_error":{"fr":"","en":"Recognising income because the residual value exceeds the carrying amount, or ignoring residual value in computing the charge.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"EUR 0","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Income of EUR 10,000 (20,000 / 2)","es":""},"correct":false,"feedback":{"fr":"","en":"This answer recognises income of EUR 10,000 because residual value exceeds carrying amount. The standard provides for no income: when residual value equals or exceeds carrying amount, the charge is nil, as long as residual value does not fall back below carrying amount (IAS 38, para. 103). Amortisation cannot become negative. Rule to remember: the charge is at a minimum nil.","es":""}},{"id":"C","text":{"fr":"","en":"EUR 160,000 (320,000 / 2)","es":""},"correct":false,"feedback":{"fr":"","en":"This answer spreads the carrying amount, EUR 320,000 ÷ 2, without taking residual value into account. But the depreciable amount is computed after deducting residual value, reviewed at least at each reporting date (IAS 38, paras. 101 and 102). Here it reaches EUR 340,000, above the carrying amount: there is nothing left to amortise (IAS 38, para. 103). Rule to remember: deduct the revised residual value before spreading.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000110","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVIEW"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"RETAIL","tested_point":"REVIEW_PROSPECTIVE_AND_DISCLOSED","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS38.000015","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"review-rule"},"references":["IAS 38 §104","IAS 38 §121"],"exercise":{"prompt":{"fr":"","en":"At year end, a retailer reviews the licence for its point-of-sale software. Here is the memo prepared. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Approach: test each note against paragraphs 104 and 121. S1 is wrong: life and method are reviewed at least at each reporting date, whether or not an event occurs (IAS 38, para. 104). S3 is wrong too: a change of life is a change in estimate, with prospective effect and no restatement of the past (IAS 38, para. 104). S5 is wrong as well: the entity discloses the nature and amount of a change in estimate with a significant effect (IAS 38, para. 121). S2 and S4 are correct. Effect on the financial statements: later charges change, and the notes describe the change if it is significant. Rule to remember: review at least annually, prospective effect, disclosure in the notes if the effect is significant (IAS 38, paras. 104 and 121).","es":""},"common_error":{"fr":"","en":"Reviewing the life only when an event occurs, restating prior years, or omitting disclosure of a significant change in estimate.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The useful life was not reviewed this year, as nothing in particular happened.","es":""},"erroneous":true,"correction":{"fr":"","en":"The period and method are reviewed at least at each year end, whether or not anything has happened (IAS 38, para. 104).","es":""}},{"id":"S2","text":{"fr":"","en":"The remaining life falls from 4 to 2 years; the carrying amount at the start of the year is allocated over those 2 years.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The prior-year financial statements are restated to reflect the new life.","es":""},"erroneous":true,"correction":{"fr":"","en":"A change in useful life is a change in estimate: prospective effect, with no restatement of the past (IAS 38, para. 104).","es":""}},{"id":"S4","text":{"fr":"","en":"The switch from units of production to straight-line, made because the pattern of consumption has changed, is treated as a change in estimate.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"The material effect of these changes is not mentioned in the notes, since they are only estimates.","es":""},"erroneous":true,"correction":{"fr":"","en":"The entity discloses the nature and amount of a change in estimate with a material effect, in particular on useful life or method (IAS 38, para. 121).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000111","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.IAS36_LINK","IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"CALCULATION","format":"CALCULATION","context":"FOOD","tested_point":"IMPAIRMENT_LOSS_INDEFINITE_BRAND","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000016","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"numeric-example"},"references":["IAS 38 §107","IAS 38 §108","IAS 38 §111","IAS 36 §18","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"A food group holds an acquired biscuit brand with an indefinite useful life, measured at cost. At the annual test, the following data are provided (case data, obtained by applying IAS 36). Calculate.","es":""},"explanation":{"fr":"","en":"Approach: 1) recoverable amount is the higher of fair value less costs of disposal (2,050,000) and value in use (2,150,000): 2,150,000 (IAS 36, para. 18); 2) the carrying amount is reduced to that amount: loss = 2,500,000 − 2,150,000 = 350,000 (IAS 36, para. 59); 3) as the life is indefinite, there is no amortisation charge (IAS 38, para. 107); impairment is governed by IAS 36 (IAS 38, paras. 108 and 111). Trap: using the lower of the two amounts (loss of 450,000). Rule to remember: recoverable amount is the higher of the two amounts (IAS 36, para. 18).","es":""},"common_error":{"fr":"","en":"Using the lower of the two amounts (2,050,000) and recognising a loss of EUR 450,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the brand","es":""},"value":"2500000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":"2050000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"2150000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Recoverable amount","es":""},"answer":2150000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Impairment loss","es":""},"answer":350000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Amortisation charge for the year","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the brand","es":""},"value":2500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value in use","es":""},"value":2150000,"unit":"EUR"}],"result":350000,"unit":"EUR","rationale":{"fr":"","en":"the carrying amount is reduced to that amount: loss = 2,500,000 − 2,150,000 = 350,000 (IAS 36, para. 59)","es":""}}],"rationale":{"fr":"","en":"recoverable amount is the higher of the two amounts (IAS 36, para. 18).","es":""},"references":["REF.IAS38.107","REF.IAS38.108","REF.IAS38.111","REF.IAS36.18","REF.IAS36.59"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000112","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.IAS36_LINK"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"COSMETICS","tested_point":"IMPAIRMENT_LOSS_ENTRY","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS38.000016","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"entry"},"references":["IAS 38 §111","IAS 36 §59","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"A cosmetics group measures an indefinite-life brand at cost. The annual test results in an impairment loss of EUR 180,000 (case data). Record the entry; the credit line is given.","es":""},"explanation":{"fr":"","en":"Approach: 1) IAS 38 refers to IAS 36 for impairment (IAS 38, para. 111); 2) the carrying amount is reduced to the recoverable amount and the reduction is an impairment loss (IAS 36, para. 59); 3) for an asset measured at cost, the loss is recognised immediately in profit or loss (IAS 36, para. 60): debit Impairment loss 180,000, credit Accumulated impairment 180,000. Trap: debiting amortisation expense, the indefinite-life brand not being amortised. Rule to remember: the impairment loss on an asset at cost goes immediately to profit or loss, separate from amortisation (IAS 36, para. 60).","es":""},"common_error":{"fr":"","en":"Debiting amortisation expense: an indefinite-life brand is never amortised; its impairment loss is a separate expense.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"IMPAIRMENT_LOSS","text":{"fr":"","en":"Impairment loss – intangible assets (profit or loss)","es":""}},{"id":"ACCUMULATED_IMPAIRMENT","text":{"fr":"","en":"Accumulated impairment – brands","es":""}},{"id":"AMORTISATION_EXPENSE","text":{"fr":"","en":"Amortisation expense (profit or loss)","es":""}},{"id":"REVALUATION_SURPLUS","text":{"fr":"","en":"Revaluation surplus (other comprehensive income)","es":""}}],"lines":[{"id":"L1","account":"IMPAIRMENT_LOSS","side":"DEBIT","amount":180000},{"id":"L2","account":"ACCUMULATED_IMPAIRMENT","side":"CREDIT","amount":180000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000113","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE","IAS38.IMPAIRMENT.IAS36_LINK"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"INDEFINITE_TO_FINITE_CHARGE","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS38.000016","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"reassessment"},"references":["IAS 38 §100","IAS 38 §109","IAS 38 §110","IAS 36 §59","IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"A radio group holds a broadcasting licence that until now had an indefinite life (renewable at little cost), carrying amount EUR 1,200,000. On 1 January N+2, the regulator announces that the licence will not be renewed beyond its term, in 8 years. The test performed at that date gives a recoverable amount of EUR 1,040,000 (case data). Nil residual value. Calculate.","es":""},"explanation":{"fr":"","en":"Approach: 1) moving to a finite life is a change in estimate (IAS 38, para. 109) and an indication of impairment: test first (IAS 38, para. 110); 2) loss = 1,200,000 − 1,040,000 = 160,000 (IAS 36, para. 59); 3) the carrying amount after the test is amortised over the remaining life, residual value presumed nil (IAS 38, para. 100) and (IAS 36, para. 63): 1,040,000 ÷ 8 = 130,000; end N+3: 1,040,000 − 2 × 130,000 = 780,000. Effect on the financial statements: a loss of 160,000, then an annual charge of 130,000. Trap: amortising 1,200,000 ÷ 8 without testing. Rule to remember: test first, then amortise the revised carrying amount over the remaining life (IAS 38, para. 110).","es":""},"common_error":{"fr":"","en":"Amortising 1,200,000 / 8 = EUR 150,000 a year without first testing the asset.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount at 1 January N+2","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount (given)","es":""},"value":"1040000","unit":"EUR"},{"label":{"fr":"","en":"Remaining useful life","es":""},"value":"8","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Impairment loss at 1 January N+2","es":""},"answer":160000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Annual charge from N+2","es":""},"answer":130000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Carrying amount at end of N+3","es":""},"answer":780000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Impairment loss at 1 January N+2","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at 1 January N+2","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount (given)","es":""},"value":1040000,"unit":"EUR"}],"result":160000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Annual charge from N+2","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Recoverable amount (given)","es":""},"value":1040000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Remaining useful life","es":""},"value":8,"unit":"YEARS"}],"result":130000,"unit":"EUR","rationale":{"fr":"","en":"the carrying amount after the test is amortised over the remaining life, residual value presumed nil (IAS 38, para. 100) and (IAS 36, para. 63): 1,040,000 ÷ 8 = 130,000","es":""}},{"step":"S3","meaning":{"fr":"","en":"Carrying amount at end of N+3","es":""},"expression":"a - 2 * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Recoverable amount (given)","es":""},"value":1040000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual charge from N+2","es":""},"value":130000,"unit":"EUR"}],"result":780000,"unit":"EUR"}],"rationale":{"fr":"","en":"test first, then amortise the revised carrying amount over the remaining life (IAS 38, para. 110).","es":""},"references":["REF.IAS38.100","REF.IAS38.109","REF.IAS38.110","REF.IAS36.59","REF.IAS36.63"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000114","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"INDEFINITE_LIFE_CONSEQUENCES","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS38.000016","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §107","IAS 38 §108","IAS 38 §109"],"exercise":{"prompt":{"fr":"","en":"Which statements apply to an intangible asset with an indefinite useful life? (several answers)","es":""},"explanation":{"fr":"","en":"No amortisation (IAS 38, para. 107); an annual test and a test whenever there is an indication under IAS 36 (IAS 38, para. 108); review of the life every period, a move to a finite life being a change in estimate (IAS 38, para. 109).","es":""},"common_error":{"fr":"","en":"Believing that an indefinite life is permanent, or that a non-amortised asset escapes any value check.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is not amortised","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is tested for impairment every year, even with no indication","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is also tested whenever an indication of impairment arises","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Whether its life is still indefinite is reviewed every period","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"It is amortised over no more than 20 years, for prudence","es":""},"correct":false,"feedback":{"fr":"","en":"This answer amortises the asset over 20 years at most out of caution. But an intangible asset with an indefinite useful life is not amortised (IAS 38, para. 107): caution takes the form of the annual impairment test, not amortisation (IAS 38, para. 108). Choosing 20 years would set a finite life the facts do not justify. Rule to remember: an indefinite life means no amortisation and an annual impairment test.","es":""}},{"id":"F","text":{"fr":"","en":"Once judged indefinite, its life can no longer become finite","es":""},"correct":false,"feedback":{"fr":"","en":"This answer freezes the life once judged indefinite. But the useful life of a non-amortised asset is reviewed each period: if the facts no longer support an indefinite life, it becomes finite, and that move is a change in estimate (IAS 38, para. 109). An initial judgement is not final. Rule to remember: the assessment of an indefinite life is reviewed each period.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000115","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"APPLICATION","format":"ORDERING","context":"PHARMA","tested_point":"INDEFINITE_TO_FINITE_SEQUENCE","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS38.000016","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"reassessment"},"references":["IAS 38 §109","IAS 38 §110","IAS 36 §59","IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"A laboratory reviews the indefinite useful life of an over-the-counter medicine brand. Put the steps in order.","es":""},"explanation":{"fr":"","en":"Approach: this order is a teaching approach. 1) Examine at the reporting date whether the facts still support an indefinite life (IAS 38, para. 109); 2) conclude the life is now finite and estimate the remaining life; 3) treat that move as an indication of impairment and compare recoverable amount with carrying amount (IAS 38, para. 110); 4) recognise a loss if the carrying amount is higher (IAS 36, para. 59); 5) amortise the revised carrying amount over the remaining life, prospectively (IAS 36, para. 63). Trap: amortising without having tested. Effect on the financial statements: any loss precedes the new charges. Rule to remember: moving to a finite life triggers a test before amortisation (IAS 38, para. 110).","es":""},"common_error":{"fr":"","en":"Starting to amortise as soon as the life becomes finite, without first comparing recoverable amount with carrying amount.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Examine at year end whether the facts still support an indefinite life","es":""}},{"id":"S2","text":{"fr":"","en":"Conclude that the life is now finite and estimate the remaining life","es":""}},{"id":"S3","text":{"fr":"","en":"Treat that change as an indication and compare recoverable amount with the carrying amount","es":""}},{"id":"S4","text":{"fr":"","en":"Recognise an impairment loss if the carrying amount exceeds recoverable amount","es":""}},{"id":"S5","text":{"fr":"","en":"Amortise the carrying amount after the test over the remaining life, prospectively","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000116","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE","IAS38.IMPAIRMENT.IAS36_LINK"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"AUTOMOTIVE","tested_point":"INDEFINITE_LIFE_REASSESSMENT_CASE","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS38.000016","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"reassessment"},"references":["IAS 38 §88","IAS 38 §100","IAS 38 §109","IAS 38 §110","IAS 36 §59","IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"Analyse the brand's situation and answer the three questions.","es":""},"explanation":{"fr":"","en":"Approach: 1) the law and the decision to discontinue set a foreseeable limit: the life becomes finite, 6 years (IAS 38, paras. 88 and 109); 2) the move is a change in estimate and an indication of impairment, hence an immediate test (IAS 38, paras. 109 and 110); 3) loss = 4,000,000 − 3,300,000 = 700,000; charge = 3,300,000 ÷ 6 = 550,000 per year (IAS 36, paras. 59 and 63). Effect on the financial statements: 700,000 loss in profit or loss, then an annual charge of 550,000. Rule to remember: as soon as a foreseeable limit appears the life becomes finite, with a test followed by prospective amortisation (IAS 38, paras. 88, 109 and 110).","es":""},"common_error":{"fr":"","en":"Keeping an indefinite life out of attachment to the brand, or amortising without first testing the brand after the law is adopted.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"A carmaker holds an acquired brand of combustion-engine vehicles, measured at cost, which until now was judged to have an indefinite useful life; its carrying amount is EUR 4,000,000. On 1 January N+1, a law is passed: the sale of new combustion-engine vehicles will be banned in 6 years. The carmaker decides to discontinue the brand at that date (case data).","es":""},"exhibits":[{"title":{"fr":"","en":"Test performed at 1 January N+1","es":""},"body":{"fr":"","en":"Recoverable amount of the brand, determined under IAS 36: EUR 3,300,000. Residual value: nil.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Can the useful life remain indefinite?","es":""},"explanation":{"fr":"","en":"A life is indefinite where there is no foreseeable limit to the generation of cash flows (IAS 38, para. 88). The law and the decision to discontinue set a limit at 6 years: the period's review leads to a finite life (IAS 38, para. 109). Rule to remember: a foreseeable limit, even a distant one, makes the life finite.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, because the brand is strong and its legal rights are renewable","es":""},"correct":false,"feedback":{"fr":"","en":"This answer keeps the indefinite life because the brand is strong and its rights are renewable. But the law bans sales of new combustion vehicles in 6 years and the manufacturer decides to discontinue the brand: a foreseeable limit now exists on the period of cash flow generation (IAS 38, para. 88). The strength of the brand changes nothing. Rule to remember: a foreseeable limit outweighs the strength of the brand or its rights.","es":""}},{"id":"B","text":{"fr":"","en":"No: there is now a foreseeable limit; the life becomes finite (6 years)","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes, until the brand is actually discontinued","es":""},"correct":false,"feedback":{"fr":"","en":"This answer waits for the brand to actually be discontinued before changing the life. But the life of a non-amortised asset is reviewed each period: as soon as the facts no longer support an indefinite life, it becomes finite (IAS 38, para. 109). With the law and the decision known on 1 January N+1, the change applies from that date, without waiting. Rule to remember: the change in life follows the information available, not the actual discontinuation date.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"What accounting consequences follow? (several answers)","es":""},"explanation":{"fr":"","en":"Moving from an indefinite to a finite life is a change in estimate (IAS 38, para. 109), applied prospectively, and an indication of impairment that requires a test (IAS 38, para. 110). Rule to remember: moving to a finite life involves neither restating the past nor skipping the test (IAS 38, paras. 109 and 110).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The change is accounted for as a change in estimate","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The brand is tested for impairment at that date","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Prior years are restated to recognise amortisation in them","es":""},"correct":false,"feedback":{"fr":"","en":"This answer restates prior years to recognise amortisation in them. A change in estimate is not applied to the past: moving from an indefinite to a finite life is a change in estimate with prospective effect (IAS 38, para. 109). The prior years, in which the asset was rightly not amortised, remain unchanged. Rule to remember: a change in estimate applies from the period of the change onward.","es":""}}],"id":"P2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Calculate the impairment loss and the annual charge from N+1.","es":""},"explanation":{"fr":"","en":"Approach: 1) loss = carrying amount 4,000,000 − recoverable amount 3,300,000 = 700,000, in profit or loss (IAS 36, para. 59); 2) the new carrying amount of 3,300,000 is amortised over 6 years, nil residual value: 3,300,000 ÷ 6 = 550,000 per year (IAS 36, para. 63). Rule to remember: the charge is recomputed on the carrying amount after the loss and the remaining life (IAS 36, para. 63).","es":""},"common_error":{"fr":"","en":"Continuing to amortise the old carrying amount: after the loss, amortisation is recomputed on 3,300,000 and the remaining life.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"4000000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount","es":""},"value":"3300000","unit":"EUR"},{"label":{"fr":"","en":"Remaining life","es":""},"value":"6","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Impairment loss","es":""},"answer":700000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Annual charge","es":""},"answer":550000,"tolerance":0,"unit":"EUR"}],"id":"P3","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":4000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":3300000,"unit":"EUR"}],"result":700000,"unit":"EUR","rationale":{"fr":"","en":"Approach: 1) loss = carrying amount 4,000,000 − recoverable amount 3,300,000 = 700,000, in profit or loss (IAS 36, para. 59)","es":""}},{"step":"S2","meaning":{"fr":"","en":"Annual charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":3300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Remaining life","es":""},"value":6,"unit":"YEARS"}],"result":550000,"unit":"EUR","rationale":{"fr":"","en":"the new carrying amount of 3,300,000 is amortised over 6 years, nil residual value: 3,300,000 ÷ 6 = 550,000 per year (IAS 36, para. 63).","es":""}}],"rationale":{"fr":"","en":"the charge is recomputed on the carrying amount after the loss and the remaining life (IAS 36, para. 63).","es":""},"references":["REF.IAS36.59","REF.IAS36.63"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000117","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.IAS36_LINK"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"SOFTWARE","tested_point":"NOT_YET_AVAILABLE_ANNUAL_TEST","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS38.000016","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §111","IAS 36 §10"],"exercise":{"prompt":{"fr":"","en":"Internally developed software, capitalised but not yet available for use, need not be tested for impairment until an indication arises, since it is not yet being amortised.","es":""},"explanation":{"fr":"","en":"Approach: 1) IAS 38 refers to IAS 36 to determine whether an intangible asset is impaired (IAS 38, para. 111); 2) IAS 36 requires an annual test, even without an indication, for intangible assets not yet available for use, as for those with an indefinite life (IAS 36, para. 10). The capitalised software not yet ready is therefore tested every year. Trap: believing that only amortised assets are subject to a test. Rule to remember: an intangible asset not yet available for use is tested every year, with or without an indication (IAS 36, para. 10).","es":""},"common_error":{"fr":"","en":"Believing that only amortised or indefinite-life assets are tested: a project in progress, still uncertain, is tested every year.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000118","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS"],"dimension":"CALCULATION","format":"CALCULATION","context":"SOFTWARE","tested_point":"GAIN_LOSS_PRORATA_CARRYING_AMOUNT","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS38.000017","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"numeric-example"},"references":["IAS 38 §97","IAS 38 §113","IAS 38 §114"],"exercise":{"prompt":{"fr":"","en":"A software publisher sells a SaaS platform licence acquired on 1 April 20X2. The contract is signed on 15 July 20X5, but the buyer only obtains control (transfer of rights and access) on 31 August 20X5. Teaching assumption: straight-line amortisation calculated monthly. Calculate the amounts requested.","es":""},"explanation":{"fr":"","en":"Approach: 1) the disposal is dated 31 August 20X5, when the buyer obtains control, not at signature (IAS 38, para. 114); 2) charge = 360,000 ÷ 48 = 7,500 per month, up to derecognition (IAS 38, para. 97); 3) from 1 April 20X2 to 31 August 20X5: 9 + 24 + 8 = 41 months, i.e. 307,500; carrying amount = 52,500; 4) net proceeds = 95,000 − 3,000 = 92,000; gain = 39,500, in profit or loss outside revenue (IAS 38, para. 113). Trap: stopping amortisation at signature. Rule to remember: disposal is dated at the transfer of control and the gain is the difference between net proceeds and carrying amount (IAS 38, paras. 113 and 114).","es":""},"common_error":{"fr":"","en":"Stopping amortisation on 15 July (signature) or on 31 December 20X4: the carrying amount is then overstated and the gain understated.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the licence","es":""},"value":"360000","unit":"EUR"},{"label":{"fr":"","en":"Useful life (nil residual value)","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Selling price","es":""},"value":"95000","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal (fees)","es":""},"value":"3000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Monthly amortisation charge","es":""},"answer":7500,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Accumulated amortisation at the date of disposal","es":""},"answer":307500,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Carrying amount at the date of disposal","es":""},"answer":52500,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Gain on derecognition","es":""},"answer":39500,"tolerance":0,"unit":"EUR"}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000119","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MEDIA","tested_point":"DISPOSAL_ENTRY_WITH_LOSS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS38.000017","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"entry"},"references":["IAS 38 §113"],"exercise":{"prompt":{"fr":"","en":"A media group sells a catalogue of broadcasting rights: cost EUR 500,000, accumulated amortisation up to date at the date of disposal EUR 320,000. The price of EUR 150,000 is payable in 60 days; legal fees of EUR 4,000 are paid in cash (case data). Record the derecognition entry; the gross amount line is given.","es":""},"explanation":{"fr":"","en":"Approach: 1) carrying amount = 500,000 − 320,000 = 180,000; 2) net proceeds = 150,000 − 4,000 = 146,000; 3) loss = 146,000 − 180,000 = 34,000, in profit or loss (IAS 38, para. 113). Entry: debit Receivable 150,000, Accumulated amortisation 320,000 and Loss on disposal 34,000; credit Intangible asset 500,000 and Cash 4,000. Check: 504,000 on each side. Trap: crediting revenue with the selling price. Rule to remember: on derecognition, the difference between net proceeds and carrying amount goes to profit or loss, outside revenue (IAS 38, para. 113).","es":""},"common_error":{"fr":"","en":"Crediting revenue with 150,000 and expensing the carrying amount: net profit is the same, but the presentation is contrary to the standard.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"RECEIVABLE","text":{"fr":"","en":"Receivable on disposal of non-current assets","es":""}},{"id":"ACCUMULATED_AMORTISATION","text":{"fr":"","en":"Accumulated amortisation – rights","es":""}},{"id":"LOSS_ON_DISPOSAL","text":{"fr":"","en":"Loss on disposal of intangible assets","es":""}},{"id":"INTANGIBLE_ASSET","text":{"fr":"","en":"Intangible asset – broadcasting rights","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"REVENUE","text":{"fr":"","en":"Revenue","es":""}}],"lines":[{"id":"L1","account":"RECEIVABLE","side":"DEBIT","amount":150000},{"id":"L2","account":"ACCUMULATED_AMORTISATION","side":"DEBIT","amount":320000},{"id":"L3","account":"LOSS_ON_DISPOSAL","side":"DEBIT","amount":34000},{"id":"L4","account":"INTANGIBLE_ASSET","side":"CREDIT","amount":500000,"given":["account","side","amount"]},{"id":"L5","account":"CASH","side":"CREDIT","amount":4000}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000120","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.TRIGGERS","IAS38.DERECOGNITION.GAIN_LOSS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"RETIREMENT_ENTRY","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS38.000017","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"example"},"references":["IAS 38 §112","IAS 38 §113"],"exercise":{"prompt":{"fr":"","en":"A retail chain permanently replaces its internally developed online payment module (cost EUR 240,000, up-to-date accumulated amortisation EUR 210,000). The old module has no use left and cannot be sold (case data). Record the entry; the gross amount line is given.","es":""},"explanation":{"fr":"","en":"Approach: 1) the module has no further use and cannot be sold: no future economic benefit is expected from its use or disposal, so it is derecognised (IAS 38, para. 112); 2) carrying amount = 240,000 − 210,000 = 30,000; 3) disposal proceeds are nil, hence a loss of 30,000 in profit or loss (IAS 38, para. 113): debit Accumulated amortisation 210,000 and Loss 30,000, credit Intangible asset 240,000. Trap: leaving the module on the balance sheet until the original amortisation ends. Rule to remember: an asset that no longer provides benefits is derecognised without waiting for a sale (IAS 38, para. 112).","es":""},"common_error":{"fr":"","en":"Leaving the module on the balance sheet until the end of its original amortisation period, although it no longer brings any benefit.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ACCUMULATED_AMORTISATION","text":{"fr":"","en":"Accumulated amortisation – module","es":""}},{"id":"LOSS_ON_DISPOSAL","text":{"fr":"","en":"Loss on disposal of intangible assets","es":""}},{"id":"INTANGIBLE_ASSET","text":{"fr":"","en":"Intangible asset – payment module","es":""}},{"id":"REVALUATION_SURPLUS","text":{"fr":"","en":"Revaluation surplus","es":""}}],"lines":[{"id":"L1","account":"ACCUMULATED_AMORTISATION","side":"DEBIT","amount":210000},{"id":"L2","account":"LOSS_ON_DISPOSAL","side":"DEBIT","amount":30000},{"id":"L3","account":"INTANGIBLE_ASSET","side":"CREDIT","amount":240000,"given":["account","side","amount"]}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000121","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"TELECOM","tested_point":"GAIN_PRESENTATION_NOT_REVENUE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS38.000017","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-gain-loss"},"references":["IAS 38 §113","IAS 38 §114"],"exercise":{"prompt":{"fr":"","en":"A telecom operator sells to a competitor, with no leaseback, a spectrum licence it no longer uses; it makes a gain of EUR 2,000,000. The CFO suggests adding it to revenue 'since licences are at the core of the business'. Which treatment should be used?","es":""},"explanation":{"fr":"","en":"The gain is recognised in profit or loss on derecognition, but it is not classified as revenue (IAS 38, para. 113). The exact line item (for example 'other income') is a presentation choice of the entity.","es":""},"common_error":{"fr":"","en":"Adding the gain on disposal to revenue because the business deals in this type of asset, or recognising it in other comprehensive income.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Add the gain to revenue for the year","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adds the gain to revenue because licences are at the heart of the business. The link with the business does not change the rule: a gain on derecognition of an intangible asset is not classified as revenue (IAS 38, para. 113). It appears in profit or loss, on a separate line. Rule to remember: the gain on disposal of an intangible stays outside revenue, even if the asset is central to the entity.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise the gain in profit or loss, outside revenue","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Recognise the gain in other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes the gain to other comprehensive income. But the gain on derecognition is recognised in profit or loss (IAS 38, para. 113); OCI concerns revaluation increases, among other things, not the result of a disposal. The EUR 2,000,000 gain therefore goes through the income statement, outside revenue. Rule to remember: gain or loss on disposal goes to profit or loss, not directly to OCI.","es":""}},{"id":"D","text":{"fr":"","en":"Apply IFRS 16, as for any sale of a licence","es":""},"correct":false,"feedback":{"fr":"","en":"This answer applies IFRS 16 to every licence disposal. But IFRS 16 applies to derecognition only in a sale and leaseback (IAS 38, para. 113); here the operator sells the licence to a competitor without leasing it back (IAS 38, para. 114). The treatment therefore falls under paragraph 113 of IAS 38. Rule to remember: IFRS 16 comes into play for a sale and leaseback, not for every disposal.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000122","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.TRIGGERS","IAS38.DERECOGNITION.UNUSED_ASSETS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"DERECOGNISE_OR_KEEP_AMORTISING","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000017","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"unused-assets"},"references":["IAS 38 §97","IAS 38 §112","IAS 38 §117"],"exercise":{"prompt":{"fr":"","en":"For each intangible asset with a finite useful life, indicate the treatment at the reporting date.","es":""},"explanation":{"fr":"","en":"Approach: for each asset, ask whether there is a disposal or no further benefit expected (derecognition, IAS 38, para. 112), or only non-use (amortisation continues, IAS 38, para. 117). A patent banned with no buyer (I1) and a licence sold with control transferred (I2): derecognise. Software mothballed (I3) and an unused customer list (I4): keep amortising. A fully amortised asset still in use (I5) and an asset classified under IFRS 5 (I6): amortisation stops without derecognition (IAS 38, paras. 97 and 117). Trap: equating 'unused' with 'worthless'. Rule to remember: amortisation does not stop because the asset is unused (IAS 38, para. 117).","es":""},"common_error":{"fr":"","en":"Treating 'unused' as 'worthless' and derecognising the shelved software, or suspending its amortisation.","es":""},"format":"CLASSIFICATION","categories":[{"id":"DERECOGNISE","text":{"fr":"","en":"Derecognise","es":""}},{"id":"KEEP_AMORTISING","text":{"fr":"","en":"Keep on the balance sheet and continue amortising","es":""}},{"id":"STOP_AMORTISING","text":{"fr":"","en":"Stop amortising without derecognising","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Patent on a process permanently prohibited by law; no possible buyer","es":""},"category":"DERECOGNISE"},{"id":"I2","text":{"fr":"","en":"Licence sold; the buyer obtained control of it before the reporting date","es":""},"category":"DERECOGNISE"},{"id":"I3","text":{"fr":"","en":"Software shelved for six months during a reorganisation, restart planned","es":""},"category":"KEEP_AMORTISING"},{"id":"I4","text":{"fr":"","en":"Customer list not used this year for lack of sales staff, still bringing benefits","es":""},"category":"KEEP_AMORTISING"},{"id":"I5","text":{"fr":"","en":"Fully amortised payroll software, still used every month","es":""},"category":"STOP_AMORTISING"},{"id":"I6","text":{"fr":"","en":"Licence classified as held for sale under IFRS 5, sale expected in four months","es":""},"category":"STOP_AMORTISING"}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000123","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS","IAS38.DERECOGNITION.UNUSED_ASSETS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"PHARMA","tested_point":"DISPOSAL_WORKPAPER_REVIEW","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS38.000017","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"pitfalls"},"references":["IAS 38 §97","IAS 38 §113","IAS 38 §114","IAS 38 §116","IAS 38 §117"],"exercise":{"prompt":{"fr":"","en":"You are reviewing the file for the sale of a medicine distribution licence. The board decided on the sale on 31 March; the licence was not classified as held for sale; the contract was signed on 10 June and the buyer obtained control on 1 July. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Approach: check disposal date, amortisation and presentation of the gain. Disposal is dated at the transfer of control, 1 July (IAS 38, para. 114): S1 is correct. S2 is wrong: without classification as held for sale, amortisation continues until derecognition (IAS 38, paras. 97 and 117). S3 is wrong too: the gain is recognised in profit or loss but is not classified as revenue (IAS 38, para. 113). S4 and S5 are correct (IAS 38, paras. 113 and 116). Effect on the financial statements: amortisation stopped too early overstates the carrying amount and understates the gain. Rule to remember: disposal is dated at the transfer of control and amortisation runs until that date (IAS 38, paras. 97 and 114).","es":""},"common_error":{"fr":"","en":"Stopping amortisation at the decision to sell when the asset is not classified as held for sale, or presenting the gain on disposal in revenue.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The disposal is dated 1 July.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"Amortisation was stopped on 31 March, the date of the decision to sell.","es":""},"erroneous":true,"correction":{"fr":"","en":"Without classification as held for sale, amortisation continues until derecognition on 1 July (IAS 38, paras. 97 and 117).","es":""}},{"id":"S3","text":{"fr":"","en":"The EUR 45,000 gain is presented in revenue.","es":""},"erroneous":true,"correction":{"fr":"","en":"The gain is recognised in profit or loss, but never classified as revenue (IAS 38, para. 113).","es":""}},{"id":"S4","text":{"fr":"","en":"The gain was calculated as the proceeds net of disposal costs less the carrying amount at 1 July.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"The earn-out linked to future sales was estimated under the IFRS 15 transaction price requirements.","es":""},"erroneous":false}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000124","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.TRIGGERS","IAS38.DERECOGNITION.GAIN_LOSS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"AUTOMOTIVE","tested_point":"DISPOSAL_DATE_AND_CONSIDERATION","difficulty":"EXPERT","estimated_time_s":420,"lesson_id":"LS.IAS38.000017","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"judgment"},"references":["IAS 38 §97","IAS 38 §113","IAS 38 §114","IAS 38 §116","IFRS 15 §38"],"exercise":{"prompt":{"fr":"","en":"Analyse the sale of the patent and answer the questions.","es":""},"explanation":{"fr":"","en":"Approach: 1) disposal is dated at the buyer's obtaining control, here 31 January 20X7, when the rights are registered and the file handed over (IAS 38, para. 114), per the IFRS 15 indicators (IFRS 15, para. 38); 2) accumulated amortisation = 6 × 120,000 + 10,000 = 730,000; carrying amount = 470,000 (IAS 38, para. 97); 3) consideration = 500,000, the contingent amount being excluded at that date (IAS 38, para. 116); gain = 30,000, in profit or loss outside revenue (IAS 38, para. 113). Effect on the financial statements: the gain belongs to 20X7, not 20X6. Rule to remember: disposal follows the transfer of control, not signature or the reporting date, and consideration follows IFRS 15 (IAS 38, paras. 114 and 116).","es":""},"common_error":{"fr":"","en":"Dating the disposal at signature or at the reporting date, or waiting for the contingent price to be collected before derecognising.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"An automotive supplier (year-end 31 December) holds a patent on a braking system, acquired for EUR 1,200,000 on 1 January 20X1 and amortised on a straight-line basis over 10 years, nil residual value. On 1 November 20X6, it signs the sale of the patent to a carmaker, subject to the condition precedent of approval by the competition authority. Approval is notified on 25 January 20X7; the rights are registered in the carmaker's name and the technical file is handed over on 31 January 20X7. The patent never met the conditions for classification as held for sale (case data).","es":""},"exhibits":[{"title":{"fr":"","en":"Financial terms","es":""},"body":{"fr":"","en":"Fixed price: EUR 500,000, paid on 31 January 20X7. Earn-out: EUR 100,000 if the carmaker fits more than 200,000 vehicles by 20X9. Case data: applying the IFRS 15 transaction price requirements, the entity concludes that no amount of the earn-out can be included at the date of disposal. No costs of disposal.","es":""}}],"parts":[{"prompt":{"fr":"","en":"On what date must the patent be derecognised?","es":""},"explanation":{"fr":"","en":"Disposal is dated at the transferee's obtaining control, under IFRS 15 (IAS 38, para. 114). Here legal title and the file pass on 31 January 20X7, after the authorisation (IFRS 15, para. 38). Professional judgement: the date adopted rests on the indicators of transfer of control and must be documented. Rule to remember: the date of disposal is that of the transfer of control (IAS 38, para. 114).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"1 November 20X6, signature of the contract","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks the signing of the contract. But the sale is subject to a condition precedent of authorisation: at signing, the carmaker has not yet obtained control of the patent. Disposal is dated at the transferee's obtaining control (IAS 38, para. 114). Rule to remember: signing subject to a condition precedent does not transfer control.","es":""}},{"id":"B","text":{"fr":"","en":"31 December 20X6, the reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks the reporting date. The reporting date is not a transfer event: on 31 December 20X6 the authorisation has not yet been obtained and the carmaker does not have control. Disposal is dated at the transfer of control, determined under IFRS 15 (IAS 38, para. 114). Rule to remember: the reporting date does not determine the disposal date.","es":""}},{"id":"C","text":{"fr":"","en":"31 January 20X7, registration of the rights and handover of the file","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The date on which the earn-out may be received","es":""},"correct":false,"feedback":{"fr":"","en":"This answer waits for any contingent price to be collected. The contingent amount is variable consideration: it does not delay disposal, which depends on the transfer of control (IAS 38, para. 114). Its estimate falls under the IFRS 15 rules on transaction price (IAS 38, para. 116) and may change after disposal. Rule to remember: variable consideration does not push back the date of derecognition.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate, to the nearest month, the amounts at the date of disposal.","es":""},"explanation":{"fr":"","en":"Approach: 1) amortisation runs until derecognition: 6 full years at 120,000 = 720,000, plus January 20X7, i.e. 10,000: 730,000 (IAS 38, para. 97); 2) carrying amount = 1,200,000 − 730,000 = 470,000; 3) consideration adopted 500,000, the contingent amount being excluded (case fact); gain = 500,000 − 470,000 = 30,000 (IAS 38, paras. 113 and 116). Rule to remember: amortisation runs up to the disposal date, and the gain is the consideration adopted less the carrying amount (IAS 38, paras. 97 and 113).","es":""},"common_error":{"fr":"","en":"Stopping amortisation at the end of the previous year or including the excluded top-up: amortisation runs to the disposal date and only the consideration used enters the gain.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual amortisation charge","es":""},"value":"120000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Accumulated amortisation at the date of disposal","es":""},"answer":730000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Carrying amount at the date of disposal","es":""},"answer":470000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Gain on derecognition","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Carrying amount at the date of disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"holds a patent on a braking system, acquired for EUR 1,200,000","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated amortisation at the date of disposal","es":""},"value":730000,"unit":"EUR"}],"result":470000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Gain on derecognition","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fixed price: EUR 500,000","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount at the date of disposal","es":""},"value":470000,"unit":"EUR"}],"result":30000,"unit":"EUR"}],"rationale":{"fr":"","en":"amortisation runs up to the disposal date, and the gain is the consideration adopted less the carrying amount (IAS 38, paras. 97 and 113).","es":""},"references":["REF.IAS38.97","REF.IAS38.113","REF.IAS38.116"]}},{"prompt":{"fr":"","en":"In 20X8, the carmaker's deliveries make the earn-out likely. The revision of the estimated consideration follows the IFRS 15 requirements on changes in the transaction price.","es":""},"explanation":{"fr":"","en":"Subsequent changes in the estimate of the consideration are dealt with under the IFRS 15 rules on changes in the transaction price (IAS 38, para. 116). Rule to remember: variable consideration on a disposal follows IFRS 15 after the disposal as at the disposal date (IAS 38, para. 116).","es":""},"common_error":{"fr":"","en":"Correcting the original gain as an error: revisions to variable consideration follow IFRS 15 rules on changes in the transaction price.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000125","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RECONCILIATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"RECONCILIATION_BUILD","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IAS38.000018","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"numeric-example"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"An operator is preparing the reconciliation of its 'Licences' class (cost model, separately acquired assets) for the year. Calculate the amounts in the table.","es":""},"explanation":{"fr":"","en":"Approach: 1) opening carrying amount = 800,000 − 320,000 = 480,000; 2) the disposal is shown at carrying amount: 100,000 − 70,000 = 30,000; 3) closing = 480,000 + 150,000 − 30,000 − 105,000 − 25,000 = 470,000; 4) gross = 800,000 + 150,000 − 100,000 = 850,000; accumulated = 320,000 − 70,000 + 105,000 + 25,000 = 380,000; check: 850,000 − 380,000 = 470,000. Each movement appears on its own line (IAS 38, para. 118). Trap: forgetting to eliminate the 70,000 of accumulated amortisation on the licence sold. Rule to remember: the reconciliation must land on the closing carrying amount (IAS 38, para. 118).","es":""},"common_error":{"fr":"","en":"Deducting the 100,000 gross amount from the carrying amount, or forgetting to remove the 70,000 accumulated amortisation of the licence sold.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Gross amount at opening","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated amortisation and impairment losses at opening","es":""},"value":"320000","unit":"EUR"},{"label":{"fr":"","en":"Separate acquisitions in the year","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Licence sold: gross amount","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Licence sold: accumulated amortisation","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Amortisation for the year","es":""},"value":"105000","unit":"EUR"},{"label":{"fr":"","en":"Impairment loss recognised in profit or loss (IAS 36)","es":""},"value":"25000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount at opening","es":""},"answer":480000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Amount of the 'Disposals' line","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Carrying amount at closing","es":""},"answer":470000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Gross amount at closing","es":""},"answer":850000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Accumulated amortisation and impairment losses at closing","es":""},"answer":380000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Carrying amount at opening","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross amount at opening","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated amortisation and impairment losses at opening","es":""},"value":320000,"unit":"EUR"}],"result":480000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Amount of the 'Disposals' line","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Licence sold: gross amount","es":""},"value":100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Licence sold: accumulated amortisation","es":""},"value":70000,"unit":"EUR"}],"result":30000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Carrying amount at closing","es":""},"expression":"a + b - c - d - e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at opening","es":""},"value":480000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Separate acquisitions in the year","es":""},"value":150000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Amount of the 'Disposals' line","es":""},"value":30000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Amortisation for the year","es":""},"value":105000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Impairment loss recognised in profit or loss (IAS 36)","es":""},"value":25000,"unit":"EUR"}],"result":470000,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Gross amount at closing","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross amount at opening","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Separate acquisitions in the year","es":""},"value":150000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Licence sold: gross amount","es":""},"value":100000,"unit":"EUR"}],"result":850000,"unit":"EUR"},{"step":"S5","meaning":{"fr":"","en":"Accumulated amortisation and impairment losses at closing","es":""},"expression":"a - b + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accumulated amortisation and impairment losses at opening","es":""},"value":320000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Licence sold: accumulated amortisation","es":""},"value":70000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Amortisation for the year","es":""},"value":105000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Impairment loss recognised in profit or loss (IAS 36)","es":""},"value":25000,"unit":"EUR"}],"result":380000,"unit":"EUR"}],"rationale":{"fr":"","en":"the reconciliation must land on the closing carrying amount (IAS 38, para. 118).","es":""},"references":["REF.IAS38.118"]}},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000126","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RECONCILIATION"],"dimension":"RECOGNITION","format":"MATCHING","context":"ENERGY","tested_point":"RECONCILIATION_LINES","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000018","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-reconciliation"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"An energy group is preparing its reconciliation. Match each event of the year to the line where it must appear.","es":""},"explanation":{"fr":"","en":"Approach: classify each event by its origin or nature. Purchase of the software is an addition by separate acquisition (L1); capitalised development costs, an internal development addition (L2); the licence taken over with the subsidiary, an addition through a business combination (L3); the rights held for sale, the line for assets held for sale and other disposals (L4); the impairment in profit or loss, impairment losses (L5); translation, net exchange differences (L6). Trap: merging the origins of additions. Rule to remember: the reconciliation shows each category of movement on its own line (IAS 38, para. 118).","es":""},"common_error":{"fr":"","en":"Mixing the origins of additions (internal, separate, business combination) on a single line, or showing revenue in the reconciliation.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Purchase of grid management software","es":""}},{"id":"L2","text":{"fr":"","en":"Development costs of a forecasting algorithm, criteria met","es":""}},{"id":"L3","text":{"fr":"","en":"Operating licence obtained with the acquisition of a subsidiary","es":""}},{"id":"L4","text":{"fr":"","en":"Rights classified as held for sale","es":""}},{"id":"L5","text":{"fr":"","en":"Impairment of a licence under IAS 36, in profit or loss","es":""}},{"id":"L6","text":{"fr":"","en":"Translation of a foreign subsidiary's intangibles","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Additions – separate acquisitions","es":""}},{"id":"R2","text":{"fr":"","en":"Additions – internal development","es":""}},{"id":"R3","text":{"fr":"","en":"Additions – business combinations","es":""}},{"id":"R4","text":{"fr":"","en":"Assets held for sale and other disposals","es":""}},{"id":"R5","text":{"fr":"","en":"Impairment losses recognised in profit or loss","es":""}},{"id":"R6","text":{"fr":"","en":"Net exchange differences","es":""}},{"id":"R7","text":{"fr":"","en":"Revenue","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"},{"left":"L5","right":"R5"},{"left":"L6","right":"R6"}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000127","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.CLASS_INFORMATION","IAS38.DISCLOSURE.INDEFINITE_LIFE"],"dimension":"DOCUMENTATION","format":"CLASSIFICATION","context":"PHARMA","tested_point":"DISCLOSURE_CHECKLIST_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS38.000018","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-specific-assets"},"references":["IAS 38 §118","IAS 38 §122"],"exercise":{"prompt":{"fr":"","en":"You are preparing the checklist for a laboratory's note on intangibles. Classify each item of information.","es":""},"explanation":{"fr":"","en":"Approach: for each item of information, ask whether it is given by class or for a specific asset or situation. Amortisation methods (I1) and the income statement line including amortisation (I2) are provided by class (IAS 38, para. 118). The value and reasons for an indefinite life (I3), assets pledged as security (I4) and acquisition commitments (I5) are targeted disclosures (IAS 38, para. 122). Researchers' names (I6) and the future advertising budget (I7) are not required. Trap: believing that any useful information is required. Rule to remember: class-level disclosures fall under paragraph 118, targeted disclosures under paragraph 122 (IAS 38, paras. 118 and 122).","es":""},"common_error":{"fr":"","en":"Believing that IAS 38 requires any useful information about intangibles (researchers' names, future budgets), or confusing class-level disclosure with targeted disclosure.","es":""},"format":"CLASSIFICATION","categories":[{"id":"BY_CLASS","text":{"fr":"","en":"Required for each class (para. 118)","es":""}},{"id":"SPECIFIC","text":{"fr":"","en":"Required for particular assets or situations (para. 122)","es":""}},{"id":"NOT_REQUIRED","text":{"fr":"","en":"Not required by IAS 38","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Amortisation methods for finite-life assets","es":""},"category":"BY_CLASS"},{"id":"I2","text":{"fr":"","en":"Profit or loss line item that includes amortisation","es":""},"category":"BY_CLASS"},{"id":"I3","text":{"fr":"","en":"Carrying amount of an indefinite-life brand and reasons for that assessment","es":""},"category":"SPECIFIC"},{"id":"I4","text":{"fr":"","en":"Carrying amount of patents pledged as security for a loan","es":""},"category":"SPECIFIC"},{"id":"I5","text":{"fr":"","en":"Amount of contractual commitments to acquire licences","es":""},"category":"SPECIFIC"},{"id":"I6","text":{"fr":"","en":"Names of the researchers who developed each molecule","es":""},"category":"NOT_REQUIRED"},{"id":"I7","text":{"fr":"","en":"Advertising budget planned for next year's launch","es":""},"category":"NOT_REQUIRED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000128","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RD_EXPENSE"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"RD_EXPENSE_AMOUNT","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS38.000018","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-rd-expense"},"references":["IAS 38 §67","IAS 38 §126","IAS 38 §127"],"exercise":{"prompt":{"fr":"","en":"An automotive supplier is preparing the disclosure of R&D expenditure recognised as an expense. Using the cost accounting records (case data), calculate the amounts requested.","es":""},"explanation":{"fr":"","en":"Approach: 1) research expensed = 150,000 + 60,000 = 210,000; 2) total R&D expensed = research 210,000 + development before the criteria 90,000 = 300,000 (IAS 38, para. 126); 3) the capitalised development (150,000) is in assets; advertising (40,000) and overheads not directly attributable (25,000) are not expenditure directly attributable to R&D (IAS 38, paras. 127 and 67). Trap: disclosing 450,000 or 515,000. Rule to remember: the disclosure covers total R&D expenditure recognised as an expense, based on directly attributable expenditure (IAS 38, paras. 126 and 127).","es":""},"common_error":{"fr":"","en":"Disclosing 450,000 by adding capitalised development, or 515,000 by also adding advertising and overheads.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Research: staff assigned","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Research: studies outsourced to an external laboratory","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Development incurred before the capitalisation criteria were met","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Capitalised development (criteria met)","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Advertising for the launch of the new product","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Head office overheads not directly attributable","es":""},"value":"25000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Research expenditure recognised as an expense","es":""},"answer":210000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Aggregate R&D expensed to be disclosed","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Aggregate R&D expensed to be disclosed","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Research expenditure recognised as an expense","es":""},"value":210000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Development incurred before the capitalisation criteria were met","es":""},"value":90000,"unit":"EUR"}],"result":300000,"unit":"EUR","rationale":{"fr":"","en":"total R&D expensed = research 210,000 + development before the criteria 90,000 = 300,000 (IAS 38, para. 126)","es":""}}],"rationale":{"fr":"","en":"the disclosure covers total R&D expenditure recognised as an expense, based on directly attributable expenditure (IAS 38, paras. 126 and 127).","es":""},"references":["REF.IAS38.67","REF.IAS38.126","REF.IAS38.127"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000129","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.CLASS_INFORMATION","IAS38.DISCLOSURE.RECONCILIATION","IAS38.DISCLOSURE.INDEFINITE_LIFE"],"dimension":"DOCUMENTATION","format":"ERROR_SPOT","context":"RETAIL","tested_point":"NOTE_REVIEW_ERRORS","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS38.000018","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"pitfalls"},"references":["IAS 38 §118","IAS 38 §122","IAS 38 §123","IAS 38 §125","IAS 38 §126","IAS 38 §90"],"exercise":{"prompt":{"fr":"","en":"You are reviewing a retailer's draft note on intangible assets. Spot the statements in the draft that do not comply with IAS 38.","es":""},"explanation":{"fr":"","en":"Approach: test each statement in the draft against the disclosure rule. S1 is wrong: for an indefinite life, the note gives the carrying amount and the reasons for the assessment, with the determining factors drawn from paragraph 90 (IAS 38, paras. 122 and 123). S2 is wrong too: a grouping of classes cannot combine amounts at cost and revalued amounts (IAS 38, para. 125). S3 is wrong as well: 500,000 + 180,000 − 40,000 − 210,000 = 430,000, not 470,000 (IAS 38, para. 118). S4 and S5 are compliant (IAS 38, paras. 118 and 126). Effect on the financial statements: an incomplete or inaccurate note deprives readers of the life factors and of an accurate reconciliation. Rule to remember: disclosure must be complete, consistently grouped and arithmetically correct (IAS 38, paras. 118, 122 and 125).","es":""},"common_error":{"fr":"","en":"Settling for stating the value of an indefinite life without giving the reasons, mixing cost and revaluation in one class, or not checking that the reconciliation lands on the carrying amount.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"'Orvane brand: indefinite useful life; carrying amount EUR 1,800,000.' No other mention.","es":""},"erroneous":true,"correction":{"fr":"","en":"The reasons for that assessment and the significant factors must also be disclosed, drawing on those in para. 90 (IAS 38, paras. 122 (a) and 123).","es":""}},{"id":"S2","text":{"fr":"","en":"For the revaluation disclosures, revalued software and software at cost are presented in a single class.","es":""},"erroneous":true,"correction":{"fr":"","en":"A grouping cannot combine amounts measured at cost and revalued amounts (IAS 38, para. 125).","es":""}},{"id":"S3","text":{"fr":"","en":"Software reconciliation: 500,000 + 180,000 − 40,000 (disposals) − 210,000 (amortisation) = 470,000.","es":""},"erroneous":true,"correction":{"fr":"","en":"The correct total is 430,000: the reconciliation must agree to the closing carrying amount (IAS 38, para. 118 (e)).","es":""}},{"id":"S4","text":{"fr":"","en":"'Research and development expenditure recognised as an expense amounts to EUR 460,000.'","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"'Amortisation is included in the Cost of sales and Administrative expenses line items.'","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000130","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.INDEFINITE_LIFE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"INDEFINITE_LIFE_JUSTIFICATION_WORDING","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS38.000018","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"example"},"references":["IAS 38 §90","IAS 38 §122","IAS 38 §123"],"exercise":{"prompt":{"fr":"","en":"A publishing group presents an acquired magazine title with a useful life assessed as indefinite. Which note wording best meets IAS 38?","es":""},"explanation":{"fr":"","en":"For an asset with an indefinite useful life, the note gives the carrying amount and the reasons for that assessment by describing the determining factors (IAS 38, para. 122), taking into account the list in paragraph 90 (IAS 38, para. 123). Wording B describes a stable readership, renewable rights, maintained editorial investment and no identified limit: these are case facts. Effect on the financial statements: the note explains why the title is not amortised. Rule to remember: an indefinite life is explained by concrete factors, not by profitability or a rule by type of asset (IAS 38, paras. 122 and 123).","es":""},"common_error":{"fr":"","en":"Writing a façade note (profitability, no decision taken, a general rule by type of asset) instead of describing the factors that explain the absence of a foreseeable limit.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"'The title is profitable: its useful life is indefinite.'","es":""},"correct":false,"feedback":{"fr":"","en":"This wording puts forward the title's profitability. But profitability does not explain the absence of a foreseeable limit to cash flow generation: the determining factors are not described (IAS 38, paras. 122 and 123). A reader cannot understand why the title is not amortised. Rule to remember: the note describes the factors that justify the absence of a limit, not the level of profitability.","es":""}},{"id":"B","text":{"fr":"","en":"'Title: EUR 3,400,000. Readership stable for 30 years, renewable trademark rights, continued editorial investment planned, no legal or competitive limit identified on the period of cash flow generation.'","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"'Management has not set an amortisation period for this title.'","es":""},"correct":false,"feedback":{"fr":"","en":"This wording relies on management not having made a decision. But the absence of a decision is not a reason: the note must give the carrying amount and the reasons for the assessment of life (IAS 38, para. 122). The conclusion must result from analysing the factors, not from a lack of choice. Rule to remember: an indefinite life is a reasoned conclusion, not a failure to decide.","es":""}},{"id":"D","text":{"fr":"","en":"'In accordance with IAS 38, magazine titles have an indefinite useful life.'","es":""},"correct":false,"feedback":{"fr":"","en":"This wording asserts that newspaper titles have an indefinite life by nature. But IAS 38 assigns no life by type of asset: life is assessed case by case from factors, including those in paragraph 90 (IAS 38, para. 90). A general sentence does not describe the factors specific to this title. Rule to remember: useful life is assessed asset by asset, not by category of asset.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"LX.IAS38.000131","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.CLASS_INFORMATION"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"SOFTWARE","tested_point":"MATERIAL_ASSET_DISCLOSURE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS38.000018","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-specific-assets"},"references":["IAS 38 §122"],"exercise":{"prompt":{"fr":"","en":"A software publisher holds an internally developed platform that makes up most of its intangibles. Complete the rule.","es":""},"explanation":{"fr":"","en":"Approach: for a significant asset taken individually, recall the three items to disclose: its description, its carrying amount and its remaining amortisation period (IAS 38, para. 122). Trap: choosing fair value, creation date or market share, which are not required under this item. Professional judgement: whether an asset is significant is a matter of the entity's judgement. Rule to remember: a significant asset is described, with its carrying amount and its remaining amortisation period (IAS 38, para. 122).","es":""},"common_error":{"fr":"","en":"Asking for the fair value or market share of a significant asset instead of its description, carrying amount and remaining amortisation period.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"For an individually material intangible asset, the entity discloses its {{first}}, its carrying amount and its {{second}}.","es":""},"blanks":[{"id":"first","mode":"CHOICE","choices":[{"id":"DESCRIPTION","text":{"fr":"","en":"description","es":""}},{"id":"FAIR_VALUE","text":{"fr":"","en":"fair value","es":""}},{"id":"CREATION_DATE","text":{"fr":"","en":"creation date","es":""}}],"answer":"DESCRIPTION"},{"id":"second","mode":"CHOICE","choices":[{"id":"REMAINING_PERIOD","text":{"fr":"","en":"remaining amortisation period","es":""}},{"id":"ORIGINAL_COST","text":{"fr":"","en":"original cost broken down by component","es":""}},{"id":"MARKET_SHARE","text":{"fr":"","en":"market share","es":""}}],"answer":"REMAINING_PERIOD"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000132","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"SAAS_ACCESS_NOT_CONTROL","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS38.000002","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §8","IAS 38 §13"],"exercise":{"prompt":{"fr":"","en":"Logivia (fictitious entity), a carrier, subscribes for three years to warehouse management software 'as a service': the software remains hosted on the publisher's servers, which updates it for all its customers; Logivia accesses it through a browser and can neither take possession of it nor run it on its own servers or with another host. Logivia also pays 40,000 to a consultant to configure its workflows in the publisher's software; this configuration creates no separate code available to Logivia (case data). Which analysis should be adopted?","es":""},"explanation":{"fr":"","en":"An intangible asset is a controlled resource (IAS 38, para. 8); control requires the power to obtain the benefits of the resource and to restrict others' access to it (IAS 38, para. 13). A subscription to hosted software, with no ability to take possession of it, gives access: it is a service, expensed as it is received. The same applies to the configuration as long as it creates no separate resource controlled by Logivia. This analysis is a teaching reading of the definition of control; the timing of expensing the configuration is not covered here and requires further analysis.","es":""},"common_error":{"fr":"","en":"Treating a contractual right of access as control of the resource, or capitalising a configuration merely because it is specific to the entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Logivia recognises the software as an intangible asset, amortised over the three-year subscription","es":""},"correct":false,"feedback":{"fr":"","en":"This answer capitalises the software and amortises it over the subscription. But Logivia can neither take possession of the software nor run it on its own servers or with another host: it receives access, not the power to obtain the benefits of the resource and restrict others' access to them (IAS 38, para. 13). Control is lacking. Rule to remember: a mere right of access to hosted software is not control of the resource.","es":""}},{"id":"B","text":{"fr":"","en":"Logivia does not control the software: it receives an access service, and the configuration, which creates no resource it would control, is not an intangible asset either","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Logivia recognises an intangible asset because the subscription contract is legally enforceable for three years","es":""},"correct":false,"feedback":{"fr":"","en":"This answer infers an intangible asset from the enforceability of the subscription contract. An enforceable right helps demonstrate control, but it must relate to the resource itself (IAS 38, para. 13). Here it gives Logivia only a right of access to the publisher's software, which it can neither hold nor run elsewhere. Rule to remember: the enforceability of a contract is not enough; there must be power over the resource's benefits.","es":""}},{"id":"D","text":{"fr":"","en":"Only the 40,000 configuration is capitalised, because it is specific to Logivia","es":""},"correct":false,"feedback":{"fr":"","en":"This answer capitalises only the EUR 40,000 configuration because it is specific to Logivia. Being entity-specific is not enough: according to the case facts, the configuration creates no separate code at Logivia's disposal, and it sits within software it does not control (IAS 38, para. 13). No controlled resource results. Rule to remember: entity-specific spending is not an asset if it does not create a resource the entity controls.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000133","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"ACQUIRED_VERSUS_INTERNAL_GOODWILL","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000004","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §3","IAS 38 §48","IAS 38 §49","IAS 38 §50","IAS 38 §68"],"exercise":{"prompt":{"fr":"","en":"The retail group Ardéa (fictitious entity) lists several kinds of 'goodwill' mentioned at its audit committee (case data). Classify each item.","es":""},"explanation":{"fr":"","en":"Approach: for each item, ask whether it arises from a business combination or merely from the entity's own life. The excess of price paid over identifiable net assets (I1) and the know-how of an acquired chain that cannot be recognised separately (I2) are part of acquired goodwill, dealt with under IFRS 3 and outside IAS 38 (IAS 38, paras. 3 and 68). Ardéa's reputation (I4) is not an identifiable, controlled resource reliably measurable at cost (IAS 38, para. 49), and the entity's value gap (I3) or the premium of an unaccepted offer (I5) do not represent the cost of controlled intangibles (IAS 38, para. 50): internally generated goodwill, not recognised (IAS 38, para. 48). Rule to remember: goodwill is recognised in a business combination; internally generated goodwill is not recognised (IAS 38, paras. 48 and 68).","es":""},"common_error":{"fr":"","en":"Thinking that an external valuation or a takeover offer allows Ardéa's goodwill to be recognised: only a business combination gives rise to recognised goodwill.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ACQUIRED","text":{"fr":"","en":"Goodwill acquired in a business combination: recognised under IFRS 3","es":""}},{"id":"INTERNAL","text":{"fr":"","en":"Internally generated goodwill: never recognised as an asset","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"The excess of the price paid by Ardéa to acquire 100% of a competing chain over the fair value of its identifiable net assets","es":""},"category":"ACQUIRED"},{"id":"I2","text":{"fr":"","en":"The collective know-how of the acquired chain's teams, which does not meet the conditions for a separate intangible asset","es":""},"category":"ACQUIRED"},{"id":"I3","text":{"fr":"","en":"The 40,000,000 gap between Ardéa's fair value, according to an internal valuation, and the carrying amount of its net assets","es":""},"category":"INTERNAL"},{"id":"I4","text":{"fr":"","en":"The reputation Ardéa has built through twenty years of training its sales staff and of loyalty campaigns","es":""},"category":"INTERNAL"},{"id":"I5","text":{"fr":"","en":"The premium an investment fund offers to pay to buy Ardéa, an offer the shareholders have not accepted","es":""},"category":"INTERNAL"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS38.000134","source":"V2","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.SUBSEQUENT_EXPENDITURE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"COSMETICS","tested_point":"BRAND_MAINTENANCE_EXPENSED","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS38.000003","review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"subsequent-expenditure"},"references":["IAS 38 §18","IAS 38 §20"],"exercise":{"prompt":{"fr":"","en":"Two years ago, the Biovéa group (fictitious entity) separately acquired the 'Floréa' skincare brand for EUR 900,000, recognised as an intangible asset. In N, to preserve the brand's reputation, it receives two invoices payable in 30 days: EUR 48,000 from an agency for an advertising campaign and EUR 12,000 from a law firm to defend the brand against counterfeiting (case data; teaching assumption: taxes ignored). Record the entry; the credit line is given.","es":""},"explanation":{"fr":"","en":"Approach: 1) both invoices relate to subsequent expenditure on a brand, here separately acquired; 2) such expenditure is always recognised in profit or loss when incurred (IAS 38, para. 20); 3) debit Advertising 48,000 and Legal fees 12,000, credit Suppliers 60,000; the brand stays at 900,000, less any amortisation. The general principle subjects subsequent costs to the criteria (IAS 38, para. 18), but for brands the standard is decisive. Trap: debiting the brand because the spending preserves its value. Rule to remember: subsequent expenditure on a brand, acquired or internally generated, is always recognised in profit or loss (IAS 38, para. 20).","es":""},"common_error":{"fr":"","en":"Debiting the brand with 60,000 on the grounds that the expenditure preserves its value: subsequent expenditure on a brand is never added to its cost.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ADVERTISING_EXPENSE","text":{"fr":"","en":"Advertising expense","es":""}},{"id":"LEGAL_FEES_EXPENSE","text":{"fr":"","en":"Legal fees expense","es":""}},{"id":"BRAND","text":{"fr":"","en":"Brands (intangible assets)","es":""}},{"id":"SUPPLIERS","text":{"fr":"","en":"Trade payables","es":""}},{"id":"ACCUMULATED_AMORTISATION","text":{"fr":"","en":"Accumulated amortisation — brands","es":""}}],"lines":[{"id":"L1","account":"ADVERTISING_EXPENSE","side":"DEBIT","amount":48000},{"id":"L2","account":"LEGAL_FEES_EXPENSE","side":"DEBIT","amount":12000},{"id":"L3","account":"SUPPLIERS","side":"CREDIT","amount":60000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000001","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000001","tested_point":"QST.IAS38.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §8"],"exercise":{"prompt":{"fr":"","en":"True or false? Under IAS 38, an asset is an intangible asset when it is not monetary, can be identified and has no physical form.","es":""},"explanation":{"fr":"","en":"True. IAS 38 relies on three cumulative features: the asset is not monetary, it can be identified and it has no physical form (IAS 38, para. 8). A monetary asset, such as a receivable, or a tangible asset does not meet this definition. Approach: check the three features one by one. Trap: believing that the absence of physical substance is enough, whereas a monetary asset still falls outside the definition. Rule to remember: an intangible asset is an identifiable non-monetary asset without physical substance (IAS 38, para. 8).","es":""},"common_error":{"fr":"","en":"Treating an asset without physical substance as an intangible asset even if it is monetary, such as a receivable.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000002","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000002","tested_point":"QST.IAS38.000002","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"True or false? An asset is identifiable only if it is both separable from the entity and arises from contractual or legal rights.","es":""},"explanation":{"fr":"","en":"False. The two conditions are alternatives: an asset is identifiable if it is separable, meaning it could be sold, transferred, licensed, rented or exchanged, even without any intention to do so, or if it arises from contractual or legal rights, even when they are not transferable (IAS 38, para. 12). Approach: look at the word linking the two conditions. Trap: requiring separability and legal rights together, whereas they are alternative routes. Example: a legal right that cannot be transferred is still identifiable. Rule to remember: an asset is identifiable if it is separable or if it arises from contractual or other legal rights (IAS 38, para. 12).","es":""},"common_error":{"fr":"","en":"Rejecting as not identifiable a legal right that cannot be transferred, because it is not separable from the entity.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000003","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000003","tested_point":"QST.IAS38.000003","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"two-criteria"},"references":["IAS 38 §21","IAS 38 §18"],"exercise":{"prompt":{"fr":"","en":"True or false? In addition to meeting the definition, an intangible asset is recognised only if it is probable that the attributable future economic benefits will flow to the entity and its cost can be measured reliably.","es":""},"explanation":{"fr":"","en":"True. The two recognition criteria are the probability of future economic benefits attributable to the asset and the reliable measurement of its cost (IAS 38, para. 21). The entity must demonstrate both the definition and these criteria (IAS 38, para. 18). Approach: check the definition first, then the two criteria. Trap: thinking that an item meeting the definition is recognised without any further test. Rule to remember: the entity demonstrates both the definition and the criteria of probable benefits and reliably measurable cost (IAS 38, paras. 18 and 21).","es":""},"common_error":{"fr":"","en":"Relying only on the two criteria (probable benefits, reliable cost) without checking that the item is identifiable and controlled.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000004","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000004","tested_point":"QST.IAS38.000004","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"True or false? Research expenditure may be capitalised once it is probable that the project will lead to a new product.","es":""},"explanation":{"fr":"","en":"False. No intangible asset arising from research, or from the research phase of an internal project, is recognised: this expenditure is recognised as an expense when it is incurred (IAS 38, para. 54). The probability of commercial success does not change this treatment. Approach: place the expenditure in the research or the development phase. Trap: reasoning on the likelihood of commercial success, which does not change the treatment of research. Example: the salaries of researchers exploring a technology stay in expenses even if the product looks promising. Rule to remember: no intangible asset is recognised for research; this expenditure is an expense when incurred (IAS 38, para. 54).","es":""},"common_error":{"fr":"","en":"Capitalising research expenditure because the project looks promising and a product is likely.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000005","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000005","tested_point":"QST.IAS38.000005","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §48","IAS 38 §49"],"exercise":{"prompt":{"fr":"","en":"True or false? An entity whose market value clearly exceeds the carrying amount of its net assets may recognise the difference as internally generated goodwill.","es":""},"explanation":{"fr":"","en":"False. Internally generated goodwill is never recognised as an asset (IAS 38, para. 48): it is not an identifiable resource, being neither separable nor arising from contractual or legal rights, controlled by the entity, and its cost cannot be measured reliably (IAS 38, para. 49). The difference between the value of the business and its net assets does not represent the cost of an asset. Approach: ask whether the difference is the cost of an identifiable, controlled resource. Trap: reading a market value gap as an asset. Teaching example: an entity valued well above its net assets does not carry the difference on its balance sheet. Rule to remember: internally generated goodwill is not recognised as an asset (IAS 38, paras. 48 and 49).","es":""},"common_error":{"fr":"","en":"Recognising as internal goodwill the excess of the value of the business over its net assets.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000006","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000006","tested_point":"QST.IAS38.000006","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §52"],"exercise":{"prompt":{"fr":"","en":"True or false? To assess whether an internally generated intangible asset can be recognised, the entity classifies the generation of the asset into a research phase and a development phase.","es":""},"explanation":{"fr":"","en":"True. To assess whether an internally generated intangible asset meets the recognition criteria, the entity distinguishes, in the generation of the asset, a research phase and a development phase (IAS 38, para. 52). These two phases have a broader meaning than the definitions of research and development. Approach: split the production of the asset into two phases before any other test. Trap: believing that the two phases are limited to the narrow definitions of research and development, whereas they have a wider meaning. Rule to remember: for an internally generated asset, the entity distinguishes a research phase and a development phase (IAS 38, para. 52).","es":""},"common_error":{"fr":"","en":"Applying only the narrow definitions of research and development and overlooking the wider meaning of the two phases.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000007","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000007","tested_point":"QST.IAS38.000007","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2"],"exercise":{"prompt":{"fr":"","en":"True or false? An equity investment falls within the scope of IAS 38 because it has no physical substance.","es":""},"explanation":{"fr":"","en":"False. IAS 38 excludes from its scope financial assets, as well as exploration and evaluation assets and expenditure on the development and extraction of minerals, oil, natural gas and similar resources (IAS 38, para. 2). Lack of physical substance is therefore not enough: an equity investment is a financial asset. Approach: set aside the physical argument and check whether an exclusion covers the item. Trap: believing that the absence of physical substance is enough to bring an item into IAS 38. Example: an equity holding is a financial asset. Rule to remember: financial assets are excluded from the scope of IAS 38 (IAS 38, para. 2).","es":""},"common_error":{"fr":"","en":"Classifying an equity holding as an intangible asset because it has no physical form.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000008","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.UNUSED_ASSETS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000008","tested_point":"QST.IAS38.000008","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"unused-assets"},"references":["IAS 38 §117"],"exercise":{"prompt":{"fr":"","en":"True or false? An entity that temporarily stops using a licence with a finite useful life suspends its amortisation until use resumes.","es":""},"explanation":{"fr":"","en":"False. Amortisation of an intangible asset with a finite useful life does not cease when the asset is no longer used, unless it is fully amortised or classified as held for sale (IAS 38, para. 117). The licence rights keep running during the idle period. Approach: separate the use of the asset from its amortisation. Trap: suspending the charge during a period of non-use, as if amortisation followed actual use. Example: a five-year licence left unused for six months keeps being amortised during those six months. Rule to remember: amortisation of a finite-life asset does not stop when the asset is no longer used, unless it is fully amortised or classified as held for sale (IAS 38, para. 117).","es":""},"common_error":{"fr":"","en":"Suspending amortisation of a finite-life licence while it is not in use.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000009","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.SUBSEQUENT_EXPENDITURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000009","tested_point":"QST.IAS38.000009","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"subsequent-expenditure"},"references":["IAS 38 §20"],"exercise":{"prompt":{"fr":"","en":"A press group holds a magazine title acquired several years ago. This year, it incurs significant expenditure to redesign the magazine's layout and relaunch its reputation. How does it account for this expenditure?","es":""},"explanation":{"fr":"","en":"Most subsequent expenditure maintains existing benefits and is difficult to attribute to a particular asset: it is only rarely capitalised. Subsequent expenditure on brands, mastheads, publishing titles, customer lists and similar items is always recognised in profit or loss (IAS 38, para. 20).","es":""},"common_error":{"fr":"","en":"Capitalising the redesign of a publication title as an increase in its value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an increase in the carrying amount of the title, since it increases its value.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adds the expenditure to the title because it increases its value, which confuses the intended effect with the recognition conditions. Subsequent expenditure on a publishing title is recognised in profit or loss when incurred (IAS 38, para. 20). A redesign that revives the title's reputation remains tied to the business as a whole. Rule to remember: subsequent expenditure on a publishing title is an expense (IAS 38, para. 20).","es":""}},{"id":"B","text":{"fr":"","en":"As an expense: subsequent expenditure on a publishing title always goes to profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As a separate intangible asset, amortised over the expected life of the new layout.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer creates a separate asset for the layout, which assumes the cost can be tied to a specific asset. Yet most subsequent expenditure maintains the expected benefits and is hard to attribute to an asset rather than to the business as a whole (IAS 38, para. 20). Amortising the redesign over its life would wrongly spread an expense. Rule to remember: subsequent expenditure is capitalised only exceptionally, and not for a publishing title (IAS 38, para. 20).","es":""}},{"id":"D","text":{"fr":"","en":"As an increase in the title if it exceeds a materiality threshold set by management.","es":""},"correct":false,"feedback":{"fr":"","en":"A threshold set by management does not change the nature of the expenditure: the rule on publishing titles contains no such threshold. This expenditure is recognised in profit or loss when incurred (IAS 38, para. 20), whether large or small. Rule to remember: the amount of subsequent expenditure on a publishing title does not turn it into an asset (IAS 38, para. 20).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000010","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000010","tested_point":"QST.IAS38.000010","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000006","section_id":"defined-terms"},"references":["IAS 38 §8"],"exercise":{"prompt":{"fr":"","en":"Which of these descriptions matches development as defined in IAS 38?","es":""},"explanation":{"fr":"","en":"Development takes place before any commercial production or use begins: it puts research findings, or other knowledge, to work in a plan or design aimed at obtaining new or substantially improved materials, devices, products, processes, systems or services (IAS 38, para. 8). Original work aimed at new knowledge is research; spreading the amortisable amount is amortisation.","es":""},"common_error":{"fr":"","en":"Confusing research (original work aimed at new knowledge) with development (applying knowledge to a plan or design).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Original work, carried out according to a plan, to obtain new scientific or technical insight.","es":""},"correct":false,"feedback":{"fr":"","en":"This description matches research: original work aimed at new knowledge. Development applies research findings or other knowledge to a plan or design, before production or commercial use (IAS 38, para. 8). Example: exploring an unknown mechanism is research, designing the prototype that follows is development. Rule to remember: development applies knowledge to a plan or design (IAS 38, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"Putting research findings, or other knowledge, to work in a plan or design for new or substantially improved materials, devices, products, processes, systems or services, before their commercial production or use.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Spreading the amortisable amount of an intangible asset methodically over its useful life, from the time it is ready for use.","es":""},"correct":false,"feedback":{"fr":"","en":"This description is that of amortisation, the methodical spreading of the depreciable amount of an intangible asset over its useful life. Development comes before production or commercial use and concerns the design of a new asset (IAS 38, para. 8). Rule to remember: development is a design activity, amortisation is the spreading of a cost (IAS 38, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"Any expenditure incurred after a product's commercial launch to strengthen its image with existing customers and distributors.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer places development after the commercial launch, whereas it takes place before production or commercial use (IAS 38, para. 8). Spending to strengthen the image of a product already launched is promotion, not the design of a new product. Rule to remember: development comes before production or commercial use (IAS 38, para. 8).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000011","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000011","tested_point":"QST.IAS38.000011","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"principle"},"references":["IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"An entity acquires new management software from a vendor. Which of these costs is recognised as an expense when incurred?","es":""},"explanation":{"fr":"","en":"Training costs are among the costs always recognised as an expense, like start-up, advertising and promotion or reorganisation costs (IAS 38, para. 69). The net purchase price, configuration and testing are, on the contrary, components of the cost of the acquired asset.","es":""},"common_error":{"fr":"","en":"Including employee training in the asset because it accompanies the acquisition of software.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The licence price, net of the trade discount obtained from the vendor.","es":""},"correct":false,"feedback":{"fr":"","en":"The licence price net of the trade discount is the starting point of the asset's cost, not an expense. It is an acquisition cost. The immediate expense here is staff training, which does not prepare the software to operate (IAS 38, paras. 27 and 29). Rule to remember: the purchase price net of discounts is included in the cost of the acquired asset (IAS 38, para. 27).","es":""}},{"id":"B","text":{"fr":"","en":"The fees of the consultant who configures the software before it goes live.","es":""},"correct":false,"feedback":{"fr":"","en":"The fees of the consultant who configures the software before it goes live are costs directly attributable to preparing the asset, so they are included in its cost (IAS 38, paras. 27 and 28). They are not expensed. Rule to remember: costs needed to bring the asset into working condition are added to its cost (IAS 38, para. 27).","es":""}},{"id":"C","text":{"fr":"","en":"Training employees to use the new software.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Tests to check that the software is functioning properly.","es":""},"correct":false,"feedback":{"fr":"","en":"Tests checking that the software works properly are costs directly attributable to preparing it, so they are included in the asset's cost (IAS 38, para. 28). They come before the go-live and are not a period expense. Rule to remember: the cost of testing proper functioning is part of the cost of the asset (IAS 38, para. 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000012","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000012","tested_point":"QST.IAS38.000012","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §72"],"exercise":{"prompt":{"fr":"","en":"A transport entity elects the revaluation model for one of its route operating licences, which are traded on an active market. What follows for the other licences in the same class?","es":""},"explanation":{"fr":"","en":"The cost model or the revaluation model is an accounting policy chosen by class: when an asset is revalued, all the assets in its class are revalued as well, except those for which there is no active market (IAS 38, para. 72).","es":""},"common_error":{"fr":"","en":"Revaluing a single licence and leaving the other licences of the same class at cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They remain at cost, because the model is chosen asset by asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer treats the choice of model as an asset-by-asset choice. Yet cost or revaluation is an accounting policy: when an asset is revalued, all the other assets in its class are revalued too, except those with no active market (IAS 38, para. 72). Revaluing one route licence while leaving the others at cost would produce a mixed class. Rule to remember: revaluation applies to the whole class of assets (IAS 38, para. 72).","es":""}},{"id":"B","text":{"fr":"","en":"They are revalued too, except those for which there is no active market.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They are revalued only when their fair value durably exceeds their historical cost.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer makes revaluation depend on the direction of the change: rises in fair value alone would trigger it. Nothing of the kind is provided: the choice concerns the method and the class, not the gap between fair value and cost (IAS 38, para. 72). Rule to remember: the choice of revaluation concerns the class, whatever the direction of fair value changes (IAS 38, para. 72).","es":""}},{"id":"D","text":{"fr":"","en":"They are revalued only once, on the date the model changes, and then stay frozen.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer freezes the assets after a single revaluation. The revaluation model instead calls for revaluations regular enough that the carrying amount does not differ significantly from fair value at the reporting date (IAS 38, para. 75). A class revalued once and then left alone would drift away from the market. Rule to remember: under revaluation, values are updated regularly (IAS 38, para. 75).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000013","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.METHOD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000013","tested_point":"QST.IAS38.000013","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §97","IAS 38 §98"],"exercise":{"prompt":{"fr":"","en":"An entity uses a process patent whose benefits are consumed mainly in the first years, as the technology then becomes less and less competitive. This pattern is reliably documented. Which amortisation method should it use?","es":""},"explanation":{"fr":"","en":"The amortisation method reflects the pattern in which the asset's future economic benefits are expected to be consumed by the entity; the straight-line method is used only if that pattern cannot be determined reliably (IAS 38, para. 97). Possible methods include the straight-line method, the diminishing balance method and the units of production method, chosen according to that pattern (IAS 38, para. 98). Here, consumption is concentrated in the first years and documented: the diminishing balance method reflects it better.","es":""},"common_error":{"fr":"","en":"Applying the straight-line method out of habit when the pattern of consumption of benefits is known and declining.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The straight-line method, which IAS 38 requires in every case.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer presents the straight-line method as mandatory. Yet the amortisation method reflects the expected pattern of consumption of the benefits, and the straight-line method is used when that pattern cannot be determined reliably (IAS 38, para. 97). Here the pattern is documented and declining: straight-line amortisation would distort it. Rule to remember: straight-line is the default choice, not an obligation (IAS 38, para. 97).","es":""}},{"id":"B","text":{"fr":"","en":"A method that reflects this pattern of consumption, here a diminishing one.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No amortisation as long as the patent generates revenue.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer suspends amortisation while the patent generates revenue, whereas amortisation of a finite-life asset begins when the asset is available for use and spreads the depreciable amount over the useful life (IAS 38, para. 97). Generating revenue neither starts nor stops the charge. Rule to remember: amortisation begins when the asset is available and follows the pattern of consumption of the benefits (IAS 38, para. 97).","es":""}},{"id":"D","text":{"fr":"","en":"A method based on the yearly change in the patent's market value.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer ties amortisation to the market value of the patent. Yet amortisation allocates the depreciable amount systematically according to the expected pattern of consumption of the benefits (IAS 38, para. 97); it does not follow price changes. A patent whose market value rises does not see its actual consumption change. Rule to remember: the amortisation method depends on the consumption of the benefits, not on market value (IAS 38, para. 97).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000014","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000014","tested_point":"QST.IAS38.000014","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"residual-rule"},"references":["IAS 38 §100"],"exercise":{"prompt":{"fr":"","en":"In which situation may an entity use a non-zero residual value for an intangible asset with a finite useful life?","es":""},"explanation":{"fr":"","en":"The residual value of an intangible asset with a finite useful life is assumed to be zero, except in two cases: a third party has committed to buy the asset at the end of its useful life; or there is an active market for the asset and, at the same time, the residual value can be determined by reference to that market and that market is likely to still exist at the end of the useful life (IAS 38, para. 100). A mere estimate by management is not enough.","es":""},"common_error":{"fr":"","en":"Adopting a residual value on the strength of a management estimate alone, without a third-party purchase commitment or an active market.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"When management believes a buyer might be interested in the asset at the end of its use.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer relies on a mere management estimate. Yet the residual value of a finite-life asset is presumed to be zero, unless a third party has committed to buy the asset or an active market exists that meets the conditions in the text (IAS 38, para. 100). A buyer's assumed interest meets neither case. Rule to remember: a non-zero residual value requires a purchase commitment or an active market (IAS 38, para. 100).","es":""}},{"id":"B","text":{"fr":"","en":"When a third party has committed to buy the asset at the end of its useful life.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"When the original cost of the asset is high compared with its useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer links the residual value to the level of the original cost. Yet the text provides for two situations: a third party's purchase commitment or an active market meeting specific conditions (IAS 38, para. 100). A high cost relative to the useful life is neither. Rule to remember: the residual value is presumed zero, unless there is a purchase commitment or an active market meeting the conditions of the text (IAS 38, para. 100).","es":""}},{"id":"D","text":{"fr":"","en":"When the asset has been revalued at least once since the entity acquired it.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer infers a residual value from a past revaluation. Yet an earlier revaluation creates neither a third-party purchase commitment nor any assurance that an active market will still exist at the end of the useful life, the conditions set by the text (IAS 38, para. 100). The residual value is presumed zero until one of these two cases is established. Rule to remember: an asset's valuation history is not enough to justify a residual value (IAS 38, para. 100).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000015","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000015","tested_point":"QST.IAS38.000015","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-reconciliation"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"An entity prepares the reconciliation between the opening and closing carrying amounts of a class of intangible assets. Which of these items appears in it?","es":""},"explanation":{"fr":"","en":"For each class, the entity presents a reconciliation of the carrying amount at the beginning and end of the period, showing in particular additions, impairment losses and the amortisation recognised during the period (IAS 38, para. 118, item e). Revenue, research expenditure that was expensed or an unrecognised fair value do not change the carrying amount.","es":""},"common_error":{"fr":"","en":"Mixing into the carrying-amount reconciliation items that do not affect those amounts, such as the revenue of the class.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Revenue earned thanks to the assets in the class.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer puts revenue in the carrying-amount reconciliation. Yet the reconciliation traces the movements in the carrying amount of the class: additions, impairment losses, amortisation for the period, disposals (IAS 38, para. 118, point e). Revenue generated by the assets does not change their carrying amount. Rule to remember: the reconciliation traces the movements that affect the carrying amount (IAS 38, para. 118).","es":""}},{"id":"B","text":{"fr":"","en":"Research expenditure recognised as an expense in the period.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer places expensed research costs in the reconciliation. Yet that expenditure did not enter the carrying amount of the class: its total is disclosed separately (IAS 38, para. 126). The reconciliation concerns recognised assets (IAS 38, para. 118). Rule to remember: an expensed cost does not appear in the reconciliation, its total is disclosed separately (IAS 38, para. 126).","es":""}},{"id":"C","text":{"fr":"","en":"The amortisation charge for the period.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The estimated fair value of the assets in the class measured at cost.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer brings in a fair value that the entity does not recognise. For assets measured at cost, the carrying amount is cost less accumulated amortisation and impairment losses (IAS 38, para. 74); a merely estimated fair value does not change it and so has no line in the reconciliation (IAS 38, para. 118). Rule to remember: the reconciliation traces recognised amounts, not market estimates (IAS 38, para. 118).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000016","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.IAS36_LINK"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000016","tested_point":"QST.IAS38.000016","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §111"],"exercise":{"prompt":{"fr":"","en":"An entity suspects that an operating licence has lost value. Which standard does it apply to determine whether the licence is impaired?","es":""},"explanation":{"fr":"","en":"To determine whether an intangible asset is impaired, the entity applies IAS 36 (IAS 38, para. 111). IAS 38 contains no impairment test of its own: it refers to IAS 36, which compares the carrying amount with the recoverable amount.","es":""},"common_error":{"fr":"","en":"Looking in IAS 38 for an impairment test specific to the intangible asset, when the standard refers to IAS 36.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 38, which provides its own fair-value-based test.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer assumes that IAS 38 contains its own impairment test. Yet, to determine whether an intangible asset is impaired, the entity applies IAS 36 (IAS 38, para. 111). IAS 38 refers to that standard, which compares the recoverable amount with the carrying amount (IAS 38, para. 110). Rule to remember: impairment of an intangible asset is determined under IAS 36 (IAS 38, para. 111).","es":""}},{"id":"B","text":{"fr":"","en":"IAS 36 Impairment of Assets.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IAS 37, because a probable future loss gives rise to a provision.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer confuses a loss of value on a recognised asset with a probable future loss. IAS 38 does not point to IAS 37 for impairment: to determine whether an intangible asset is impaired, the entity applies IAS 36 (IAS 38, para. 111). The issue is whether the existing asset is impaired, not anticipating a future cost. Rule to remember: IAS 38 refers to IAS 36 for impairment (IAS 38, para. 111).","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 13, because impairment is always measured at fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer makes fair value the measure of every impairment. Yet the test compares the recoverable amount with the carrying amount under IAS 36, to which IAS 38 refers (IAS 38, paras. 110 and 111). A standard that defines a measure is not the one that determines whether the asset is impaired. Rule to remember: the standard applicable to the impairment test is IAS 36 (IAS 38, para. 111).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000017","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000017","tested_point":"QST.IAS38.000017","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §13","IAS 38 §16"],"exercise":{"prompt":{"fr":"","en":"A chain of stores has built, through costly campaigns, a loyal customer base that makes regular purchases. No contract binds these customers, who are free to go to competitors, and no exchange transactions for similar customer relationships are observed. Management wishes to recognise this customer relationship as an intangible asset. Which analysis is correct?","es":""},"explanation":{"fr":"","en":"An entity controls an asset if it has the power to obtain the future economic benefits flowing from the underlying resource and to restrict the access of others to those benefits; this power normally stems from legal rights (IAS 38, para. 13). Without legal rights or other ways to control the relationship or the loyalty of customers, the entity usually has insufficient control; only exchange transactions for the same or similar non-contractual customer relationships could provide evidence of control, and there are none here (IAS 38, para. 16). The customer relationship therefore does not meet the definition, whatever the cost of the campaigns or the probability of purchases.","es":""},"common_error":{"fr":"","en":"Recognising a loyal customer base with no contracts as an asset because future purchases look probable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It can recognise it, because regular purchases make future benefits probable.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer stops at the probability of benefits. Yet before looking at the recognition criteria, a controlled resource is needed: the entity must be able to obtain the benefits and restrict others' access to them (IAS 38, para. 13). Customers free to go to competitors do not give it that power (IAS 38, para. 16). Rule to remember: probable benefits do not replace control of the resource (IAS 38, para. 13).","es":""}},{"id":"B","text":{"fr":"","en":"It cannot recognise it: nothing allows it to stop its customers from leaving.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It can recognise it at the cost of the campaigns, since that cost is measured reliably.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer relies on the reliability of the campaign cost to recognise the customer relationship. Yet a reliable cost is a recognition criterion (IAS 38, para. 21) that comes on top of the definition: as long as control is not established, the definition is not met (IAS 38, paras. 13 and 16). Without control, the campaign cost remains an expense. Rule to remember: a reliable cost does not make up for the lack of control (IAS 38, para. 18).","es":""}},{"id":"D","text":{"fr":"","en":"It can recognise it as soon as an expert estimates its fair value reliably.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer makes recognition depend on an expert's view of fair value. Yet a reliable estimate does not create the power to obtain the benefits and restrict access to them (IAS 38, para. 13). Exchange transactions for identical or similar non-contractual customer relationships would prove such control, and there are none here (IAS 38, para. 16). Rule to remember: measurement does not replace control of the resource (IAS 38, para. 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000018","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RD_EXPENSE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000018","tested_point":"QST.IAS38.000018","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-rd-expense"},"references":["IAS 38 §126"],"exercise":{"prompt":{"fr":"","en":"What does IAS 38 require entities to disclose about research and development expenditure that is not capitalised?","es":""},"explanation":{"fr":"","en":"The entity discloses the aggregate amount of research and development expenditure recognised as an expense during the period (IAS 38, para. 126). This total therefore also includes development expenditure that was expensed, for example before the capitalisation criteria were met.","es":""},"common_error":{"fr":"","en":"Leaving out of the total research and development disclosed the development expenditure expensed before the criteria were met.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: only capitalised expenditure gives rise to a disclosure in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer limits the disclosure to capitalised expenditure. Yet the entity discloses the total amount of research and development expenditure recognised as an expense during the period (IAS 38, para. 126). Expenditure that is not capitalised is exactly what is targeted. Rule to remember: the total research and development expensed is disclosed (IAS 38, para. 126).","es":""}},{"id":"B","text":{"fr":"","en":"The total amount of research and development recognised as an expense in the period.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Details of abandoned projects and the probability of success of each ongoing project.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adds a list of abandoned projects and probabilities of success. The disclosure required is an amount: the total research and development recognised as an expense in the period (IAS 38, para. 126). It is not given project by project. Rule to remember: the disclosure concerns the total amount expensed, not project detail (IAS 38, para. 126).","es":""}},{"id":"D","text":{"fr":"","en":"Only the amount of research expenditure, development expenditure that was expensed being excluded.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer limits the total to research expenditure and leaves out expensed development. Yet the disclosure covers the total research and development recognised as an expense (IAS 38, para. 126), which also includes development incurred before the capitalisation criteria were met. Rule to remember: the total disclosed includes both research and development expensed (IAS 38, para. 126).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000019","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000019","tested_point":"QST.IAS38.000019","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §107","IAS 38 §108"],"exercise":{"prompt":{"fr":"","en":"An entity concludes that an acquired brand has an indefinite useful life. What treatment then applies to the brand?","es":""},"explanation":{"fr":"","en":"An intangible asset with an indefinite useful life is not amortised (IAS 38, para. 107). Under IAS 36, it is tested for impairment annually and whenever there is an indication that it may be impaired (IAS 38, para. 108).","es":""},"common_error":{"fr":"","en":"Amortising a brand with an indefinite useful life or exempting it from the annual impairment test.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is amortised over a default maximum period set by the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer amortises the brand over a default maximum period. Yet an intangible asset with an indefinite useful life is not amortised (IAS 38, para. 107): there is no amortisation period to set. Its value is monitored through an impairment test (IAS 38, para. 108). Rule to remember: an indefinite life means no amortisation (IAS 38, para. 107).","es":""}},{"id":"B","text":{"fr":"","en":"It is not amortised and is tested for impairment annually and whenever there is an indication of impairment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is neither amortised nor tested as long as no indication of impairment appears.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer does not amortise the brand, which is right, but waits for an indication of impairment before testing it. Yet an asset with an indefinite life is tested every year, as well as whenever an indication appears (IAS 38, para. 108). The annual test replaces the amortisation charge as the check on value. Rule to remember: with no amortisation, the impairment test is annual and also at each indication (IAS 38, para. 108).","es":""}},{"id":"D","text":{"fr":"","en":"It is amortised over the brand's legal protection period, ignoring any possible renewals.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer amortises the brand over its legal protection period. Yet an indefinite life is not the same as the period of the rights: the brand is not amortised (IAS 38, para. 107), and renewals can be taken into account when there is evidence that they will occur without significant cost (IAS 38, para. 94). Rule to remember: an indefinite life rules out amortisation (IAS 38, para. 107).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000020","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.INDEFINITE_LIFE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000020","tested_point":"QST.IAS38.000020","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-specific-assets"},"references":["IAS 38 §122"],"exercise":{"prompt":{"fr":"","en":"A group reports a brand with an indefinite useful life. In addition to the general information by class, what must it disclose in the notes about this brand?","es":""},"explanation":{"fr":"","en":"For an intangible asset assessed as having an indefinite useful life, the entity discloses its carrying amount and the reasons supporting that assessment, describing the factor or factors that played a significant role (IAS 38, para. 122).","es":""},"common_error":{"fr":"","en":"Giving only the result of the impairment test without explaining why the useful life is judged indefinite.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its carrying amount and the reasons supporting the indefinite life, with the significant factors.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The amortisation period it would have used had the useful life been assessed as finite.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer asks for a hypothetical amortisation period. Yet the disclosure required for an asset with an indefinite life concerns its carrying amount and the reasons for that assessment, with the determining factors (IAS 38, para. 122, point a). A fictitious period is not part of it. In the notes, what matters is the justification of the indefinite life. Rule to remember: explain why the life is indefinite; do not invent another one (IAS 38, para. 122).","es":""}},{"id":"C","text":{"fr":"","en":"The fair value of the brand at each year-end, even when there is no active market for the brand.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer requires the fair value of the brand at each reporting date. Yet paragraph 122(a) asks for the asset's carrying amount and the reasons for the indefinite life, not an annual fair value (IAS 38, para. 122). Without an active market, a reliable fair value may not even be available. Rule to remember: the disclosure on an indefinite-life asset concerns its carrying amount and the justification of the life (IAS 38, para. 122).","es":""}},{"id":"D","text":{"fr":"","en":"Only the outcome of the annual impairment test, the indefinite life calling for no other explanation.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer reduces the disclosure to the result of the impairment test and treats any explanation as unnecessary. Yet the entity must precisely disclose the reasons supporting an indefinite life, describing the determining factors (IAS 38, para. 122, point a). The result of a test says nothing about those reasons. Rule to remember: an indefinite life must be justified in the notes (IAS 38, para. 122).","es":""}}]},"scope":"OPTIONAL_STUDENT","reserve":true},{"key":"QST.IAS38.000021","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000021","tested_point":"QST.IAS38.000021","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §27","IAS 38 §28"],"exercise":{"prompt":{"fr":"","en":"An entity acquires production planning software. Which of the following items form part of the cost of the intangible asset?","es":""},"explanation":{"fr":"","en":"The cost of a separately acquired asset comprises its purchase price, including non-refundable duties and taxes, after deducting discounts and rebates, plus the costs directly attributable to preparing the asset for its intended use (IAS 38, para. 27). Professional fees and the costs of testing whether the asset functions properly are examples (IAS 38, para. 28). Recoverable VAT, training and initial operating losses are not part of it.","es":""},"common_error":{"fr":"","en":"Including in the software cost the training of users or the recoverable VAT.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Training the future users of the software.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer includes user training in the cost of the software. Yet that cost comprises the purchase price and the costs directly attributable to preparing the asset (IAS 38, para. 27); training, linked to a new activity or customer base, is excluded (IAS 38, para. 29). It therefore weighs on profit or loss for the year, not on the carrying amount. Rule to remember: training is not a cost of the asset (IAS 38, para. 29).","es":""}},{"id":"B","text":{"fr":"","en":"The purchase price, after deducting the trade discount.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Non-refundable taxes related to the purchase.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"VAT invoiced by the vendor and recoverable by the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer includes recoverable VAT in the cost. Yet the cost includes non-refundable taxes (IAS 38, para. 27), that is, those the entity cannot recover. Recoverable VAT is a receivable from the tax authority, not part of the asset's price. Example: 20 of VAT recovered on a purchase of 100 does not bring the cost to 120. Rule to remember: non-refundable taxes go into the cost, recoverable taxes do not (IAS 38, para. 27).","es":""}},{"id":"E","text":{"fr":"","en":"The fees of the integrator who installs and configures the software.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The costs of testing that the software functions properly before it goes live.","es":""},"correct":true},{"id":"G","text":{"fr":"","en":"Operating losses in the first month of using the software.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer includes the losses of the first month of use. Yet the capitalisation of costs stops when the asset is capable of operating as intended; initial operating losses are excluded (IAS 38, para. 30). These losses stay in profit or loss for the year instead of inflating the value of the asset. Rule to remember: capitalisation stops once the asset is ready to operate (IAS 38, para. 30).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000022","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000022","tested_point":"QST.IAS38.000022","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"brands-rule"},"references":["IAS 38 §63"],"exercise":{"prompt":{"fr":"","en":"Which of the following items, when internally generated, are never recognised as intangible assets?","es":""},"explanation":{"fr":"","en":"Internally generated brands, mastheads, publishing titles, customer lists and similar items are not recognised as intangible assets (IAS 38, para. 63). Acquired software is not internally generated, and development costs that meet all the criteria are capitalised.","es":""},"common_error":{"fr":"","en":"Capitalising a brand or a customer list created by the entity at the cost of the campaigns run to launch it.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A brand created and developed by the entity.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Software acquired from a vendor for a set price.","es":""},"correct":false,"feedback":{"fr":"","en":"This software is acquired from a vendor, not internally generated: the rule on internally created items does not apply to it. Its cost follows that of a separate acquisition, i.e. the purchase price and directly attributable costs (IAS 38, para. 27). Rule to remember: the exclusion in paragraph 63 concerns internally generated items, not acquired ones (IAS 38, para. 63).","es":""}},{"id":"C","text":{"fr":"","en":"A customer list built up over the years.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Development costs that meet all the capitalisation criteria.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer puts in the exclusions development costs that meet all the criteria. Yet an asset arising from development is recognised when the entity demonstrates all the criteria (IAS 38, para. 57). The exclusion in paragraph 63 concerns brands, titles and customer lists, not development meeting the criteria. Rule to remember: development that meets all the criteria is capitalised (IAS 38, para. 57).","es":""}},{"id":"E","text":{"fr":"","en":"A newspaper masthead launched by the entity.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000023","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.TRIGGERS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000023","tested_point":"QST.IAS38.000023","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §112"],"exercise":{"prompt":{"fr":"","en":"Which of these events lead to the derecognition of an intangible asset?","es":""},"explanation":{"fr":"","en":"An intangible asset is derecognised on disposal, for example a sale, or when no future economic benefits are expected from its use or disposal (IAS 38, para. 112). Temporary idleness, a fall in value or full amortisation are not, on their own, grounds for derecognition.","es":""},"common_error":{"fr":"","en":"Keeping on the balance sheet an asset from which no future benefit is expected from use or disposal.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Taking it out of use temporarily for a few months.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer derecognises an asset idle for a few months. Yet derecognition takes place on disposal or when no future economic benefits are expected from use or disposal (IAS 38, para. 112). A temporary shutdown does not establish that no benefit is expected any more. Rule to remember: a temporary shutdown is not, in itself, a reason for derecognition (IAS 38, para. 112).","es":""}},{"id":"B","text":{"fr":"","en":"Its sale to a third party.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A fall in its fair value below its cost.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer confuses a fall in value with derecognition. A fair value below cost does not establish that no future benefit is expected: the asset stays recognised (IAS 38, para. 112), and the question of a loss in value is settled under IAS 36 (IAS 38, para. 111). Rule to remember: a fall in value calls for an impairment test, not removal from the balance sheet (IAS 38, para. 111).","es":""}},{"id":"D","text":{"fr":"","en":"A finding that no future economic benefits are expected any more from its use or disposal.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Its full amortisation while it is still in use.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer derecognises a fully amortised asset that is still in use. Yet as long as the entity uses the asset, it gets economic benefits from it: the condition in paragraph 112 is not met. Full amortisation is not enough to derecognise. Rule to remember: derecognition depends on disposal or on the absence of future benefit, not on the level of amortisation (IAS 38, para. 112).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000024","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.CLASS_INFORMATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000024","tested_point":"QST.IAS38.000024","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-by-class"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"Which of the following does an entity disclose for each class of intangible assets, distinguishing internally generated assets from others?","es":""},"explanation":{"fr":"","en":"For each class, distinguishing internally generated intangible assets from others, the entity discloses in particular whether useful lives are finite or indefinite, the useful lives or amortisation rates and the methods used for assets with finite lives, the gross carrying amount and accumulated amortisation at the beginning and end of the period, and a reconciliation of carrying amounts (IAS 38, para. 118).","es":""},"common_error":{"fr":"","en":"Giving the disclosures as a single total without distinguishing internally generated assets from the others.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Whether the useful lives are finite or indefinite.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Details of advertising expenditure for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer places advertising expenditure among the class disclosures. Yet these disclosures describe the assets of the class: lives, rates, methods, gross amounts, accumulated amounts and reconciliation of carrying amounts (IAS 38, para. 118). Advertising is an expense of the period (IAS 38, para. 69), not an attribute of an asset. Rule to remember: class disclosures concern recognised assets (IAS 38, para. 118).","es":""}},{"id":"C","text":{"fr":"","en":"For assets with finite lives, the useful lives or amortisation rates used.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The amortisation methods used for assets with finite lives.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A list of the suppliers of each asset, by name.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adds the named list of suppliers for each asset. That list is not among the class disclosures in paragraph 118, which describe the assets themselves: lives, methods, gross amounts, accumulated amortisation and reconciliation (IAS 38, para. 118). Rule to remember: paragraph 118 lists information about assets, not about their suppliers (IAS 38, para. 118).","es":""}},{"id":"F","text":{"fr":"","en":"The gross carrying amount and accumulated amortisation at the beginning and end of the period.","es":""},"correct":true},{"id":"G","text":{"fr":"","en":"The share of revenue attributable to each class.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer asks for revenue to be broken down by class of intangible asset. Yet paragraph 118 covers lives, rates, methods, gross amounts, accumulated amounts and reconciliation of carrying amounts; it does not mention a breakdown of revenue (IAS 38, para. 118). Revenue is not an attribute of the assets. Rule to remember: class disclosures describe the assets, not the revenue they generate (IAS 38, para. 118).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000025","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000025","tested_point":"QST.IAS38.000025","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"development-rule"},"references":["IAS 38 §57"],"exercise":{"prompt":{"fr":"","en":"To recognise an intangible asset arising from the development phase, which of the following must the entity demonstrate?","es":""},"explanation":{"fr":"","en":"An intangible asset arising from development is recognised if the entity can demonstrate, among other things, the technical feasibility of completing it, its intention to complete the asset and use or sell it, its ability to do so, how the asset will generate probable future economic benefits, the availability of the necessary resources and its ability to measure the attributable expenditure reliably (IAS 38, para. 57). A completed sale or the length of research are not among these criteria.","es":""},"common_error":{"fr":"","en":"Capitalising development expenditure from the start of the project without demonstrating all the criteria.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"That the product has already been sold to at least one customer.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer requires a sale already made. Yet the criterion concerns how the asset will generate probable future economic benefits, including the existence of a market for its output or for the asset itself (IAS 38, para. 57, point d). A market can be shown without a prior sale. As long as not all criteria are demonstrated, the expenditure stays in expenses. Rule to remember: development requires demonstrating probable benefits, not a first sale (IAS 38, para. 57).","es":""}},{"id":"B","text":{"fr":"","en":"The technical feasibility of completing the asset.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Its intention to complete the asset and use or sell it.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"That the research phase lasted less than one financial year.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adds a criterion on the length of the research phase. Yet the list in paragraph 57 contains no duration condition: it covers feasibility, intention, ability, probable benefits, resources and reliable measurement of expenditure (IAS 38, para. 57). The length of research replaces none of these elements. Rule to remember: the criteria in paragraph 57 are the ones to demonstrate to capitalise development (IAS 38, para. 57).","es":""}},{"id":"E","text":{"fr":"","en":"The availability of technical, financial and other resources to complete the development.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"Its ability to measure reliably the expenditure attributable to the asset during its development.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000026","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000026","tested_point":"QST.IAS38.000026","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §90","IAS 38 §88"],"exercise":{"prompt":{"fr":"","en":"Which of the following factors does the entity consider when assessing the useful life of an intangible asset?","es":""},"explanation":{"fr":"","en":"The entity assesses whether the useful life is finite or indefinite (IAS 38, para. 88), taking into account many factors, including expected usage, obsolescence, the stability of the industry and changes in demand, and the period of control and legal or similar limits (IAS 38, para. 90). The way the acquisition is financed and tax rules say nothing about the period over which the asset will be used.","es":""},"common_error":{"fr":"","en":"Confusing accounting useful life with tax rules or the financing of the acquisition when assessing the period of use.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The expected usage of the asset by the entity.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"How the acquisition is financed, through equity or debt.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes into account the way the acquisition is financed. Yet the factors in paragraph 90 concern use, obsolescence, the industry, competitors, maintenance and the period of control (IAS 38, para. 90). Buying with debt or with equity does not change the period over which the asset provides benefits. Rule to remember: useful life depends on the asset and its context, not on how it is financed (IAS 38, para. 90).","es":""}},{"id":"C","text":{"fr":"","en":"Technical, technological or commercial obsolescence.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The stability of the industry and changes in demand for the products derived from the asset.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The tax depreciation rate applicable to the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer relies on the tax depreciation rate. Yet accounting useful life is an assessment based on the factors in paragraph 90: use, obsolescence, industry, control (IAS 38, para. 90). A tax schedule says nothing about the actual period of use. Rule to remember: useful life is based on the economic factors of the asset, not on tax rules (IAS 38, para. 90).","es":""}},{"id":"F","text":{"fr":"","en":"The period of control over the asset and legal limits on its use.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000027","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000027","tested_point":"QST.IAS38.000027","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §27","IAS 38 §28"],"exercise":{"prompt":{"fr":"","en":"An entity acquires a perpetual licence for design software at a list price of {list_price}, on which the vendor grants a trade discount of {trade_discount}. It bears a non-refundable tax of {non_refundable_tax} and VAT of {recoverable_vat}, which it fully recovers. A contractor charges {installation_fees} to install the software and bring it to working condition. What is the cost of the intangible asset?","es":""},"explanation":{"fr":"","en":"Cost comprises the purchase price, including non-refundable taxes, after deducting trade discounts (IAS 38, para. 27), and the costs directly attributable to bringing the asset to working condition, such as professional fees (IAS 38, para. 28): 200,000 − 20,000 (10% discount) + 6,000 + 9,000 = 195,000. Recoverable VAT is excluded: it is a receivable from the tax authorities. Trap: adding recoverable VAT or forgetting the discount. Rule to remember: the cost comprises the purchase price net of discounts, non-refundable taxes included, and directly attributable costs; recoverable VAT is not part of it (IAS 38, paras. 27 and 28).","es":""},"common_error":{"fr":"","en":"Including recoverable VAT in cost (231,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"list_price","value":"200000","unit":"EUR"},{"id":"trade_discount","value":"10","unit":"PERCENT"},{"id":"non_refundable_tax","value":"6000","unit":"EUR"},{"id":"recoverable_vat","value":"36000","unit":"EUR"},{"id":"installation_fees","value":"9000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"List price of the licence","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Trade discount","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Non-refundable tax","es":""},"value":"6000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable VAT","es":""},"value":"36000","unit":"EUR"},{"label":{"fr":"","en":"Installation fees","es":""},"value":"9000","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost of the intangible asset","es":""},"answer":195000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000028","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000028","tested_point":"QST.IAS38.000028","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §29","IAS 38 §30","IAS 38 §28"],"exercise":{"prompt":{"fr":"","en":"A retailer acquires an online sales platform for {purchase_price}. It then incurs {configuration} of configuration and {testing} of tests of proper functioning before going live. It also spends {user_training} on training its teams and {launch_advertising} on advertising to announce the launch of the site. In the first month after going live, the site, with few visitors, makes an operating loss of {initial_operating_loss}. What is the cost of the intangible asset?","es":""},"explanation":{"fr":"","en":"Cost comprises the purchase price and the costs directly attributable to preparing the asset, such as configuration and testing (IAS 38, para. 28): 120,000 + 15,000 + 5,000 = 140,000. Launch advertising and staff training are not part of cost (IAS 38, para. 29). Recognition of costs stops when the asset is capable of operating as intended: the initial operating loss is excluded (IAS 38, para. 30). Trap: capitalising everything for simplicity. Rule to remember: the cost includes the price and the costs directly attributable to preparing the asset; advertising, training and initial losses are excluded, and capitalisation stops when the asset can operate as intended (IAS 38, paras. 29 and 30).","es":""},"common_error":{"fr":"","en":"Capitalising every item (164,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"purchase_price","value":"120000","unit":"EUR"},{"id":"configuration","value":"15000","unit":"EUR"},{"id":"testing","value":"5000","unit":"EUR"},{"id":"user_training","value":"8000","unit":"EUR"},{"id":"launch_advertising","value":"12000","unit":"EUR"},{"id":"initial_operating_loss","value":"4000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Purchase price of the platform","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Configuration before going live","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Tests of proper functioning","es":""},"value":"5000","unit":"EUR"},{"label":{"fr":"","en":"Training of the teams","es":""},"value":"8000","unit":"EUR"},{"label":{"fr":"","en":"Launch advertising","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Operating loss in the first month","es":""},"value":"4000","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost of the intangible asset","es":""},"answer":140000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTANGIBLE_COST","meaning":{"fr":"","en":"Cost of the intangible asset","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Purchase price of the platform","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Configuration before going live","es":""},"value":15000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Tests of proper functioning","es":""},"value":5000,"unit":"EUR"}],"result":140000,"unit":"EUR","rationale":{"fr":"","en":"Cost comprises the purchase price and the costs directly attributable to preparing the asset, such as configuration and testing (IAS 38, para. 28): 120,000 + 15,000 + 5,000 = 140,000.","es":""}}],"rationale":{"fr":"","en":"the cost includes the price and the costs directly attributable to preparing the asset; advertising, training and initial losses are excluded, and capitalisation stops when the asset can operate as intended (IAS 38, paras. 29 and 30).","es":""},"references":["REF.IAS38.29","REF.IAS38.30","REF.IAS38.28"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000029","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000029","tested_point":"QST.IAS38.000029","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §65","IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"A laboratory internally develops a patented process. Before the date on which the recognition criteria are first met, it incurred expenditure of {pre_criteria_costs}. From that date, it incurs {materials} of materials and services used, {staff_costs} of employee benefits for staff assigned to the project and {registration_fee} of fees to register the patent. A share of general administrative overheads of {general_overhead}, with no direct link to the project, is also allocated to it. What is the cost of the intangible asset?","es":""},"explanation":{"fr":"","en":"The cost of an internally generated intangible asset is the sum of expenditure incurred from the date when it first meets the recognition criteria (IAS 38, para. 65). It comprises directly attributable costs, such as materials and services, employee benefits and fees to register a legal right (IAS 38, para. 66): 80,000 + 150,000 + 5,000 = 235,000. Earlier expenditure is excluded, and general administrative overheads that are not directly attributable are not part of cost (IAS 38, para. 67). Trap: adding earlier expenditure (90,000) or general overheads (20,000), which stay in expenses. Rule to remember: the cost is measured from the date the criteria are first met and excludes general overheads that are not directly attributable (IAS 38, paras. 65 and 67).","es":""},"common_error":{"fr":"","en":"Adding the expenditure incurred before the criteria date (325,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"pre_criteria_costs","value":"90000","unit":"EUR"},{"id":"materials","value":"80000","unit":"EUR"},{"id":"staff_costs","value":"150000","unit":"EUR"},{"id":"registration_fee","value":"5000","unit":"EUR"},{"id":"general_overhead","value":"20000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Expenditure before the criteria date","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Materials and services used","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Employee benefits of staff on the project","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Patent registration fees","es":""},"value":"5000","unit":"EUR"},{"label":{"fr":"","en":"Allocated general administrative overheads","es":""},"value":"20000","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost of the intangible asset","es":""},"answer":235000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTANGIBLE_COST","meaning":{"fr":"","en":"Cost of the intangible asset","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Materials and services used","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Employee benefits of staff on the project","es":""},"value":150000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Patent registration fees","es":""},"value":5000,"unit":"EUR"}],"result":235000,"unit":"EUR","rationale":{"fr":"","en":"It comprises directly attributable costs, such as materials and services, employee benefits and fees to register a legal right (IAS 38, para. 66): 80,000 + 150,000 + 5,000 = 235,000.","es":""}}],"rationale":{"fr":"","en":"the cost is measured from the date the criteria are first met and excludes general overheads that are not directly attributable (IAS 38, paras. 65 and 67).","es":""},"references":["REF.IAS38.65","REF.IAS38.66","REF.IAS38.67"]}},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000030","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.PAST_EXPENSES","IAS38.INTERNAL_GENERATION.COST"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000030","tested_point":"QST.IAS38.000030","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §71","IAS 38 §65"],"exercise":{"prompt":{"fr":"","en":"Last year, a video game publisher expensed {prior_year_costs} of development expenditure on a new graphics engine, as the capitalisation criteria were not met. This year, the criteria are met for the first time on 1 April. The project cost {pre_criteria_current_year} from January to March, then {post_criteria_costs} from April to December. Management wishes to reinstate all the project expenditure as an asset. What is the cost of the asset at the year-end?","es":""},"explanation":{"fr":"","en":"The cost of an internally generated asset is the sum of the expenditure incurred from the date the criteria are first met (IAS 38, para. 65), i.e. 350,000 for April to December. Expenditure already recognised as an expense, last year (400,000) or from January to March (100,000), is not reinstated later in the cost of an intangible asset (IAS 38, para. 71): management's proposal to reinstate everything is therefore not possible. In the financial statements, 500,000 stays in expenses and 350,000 is recognised as an asset. Trap: adding up 850,000. Rule to remember: expenditure recognised as an expense is not reinstated later as an asset (IAS 38, para. 71).","es":""},"common_error":{"fr":"","en":"Reinstating all the project expenditure (850,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"prior_year_costs","value":"400000","unit":"EUR"},{"id":"pre_criteria_current_year","value":"100000","unit":"EUR"},{"id":"post_criteria_costs","value":"350000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Last year's expenditure, expensed","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Expenditure from January to March","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Expenditure from April to December","es":""},"value":"350000","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost of the asset at the year-end","es":""},"answer":350000,"tolerance":0,"unit":"EUR"}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000031","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000031","tested_point":"QST.IAS38.000031","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"An entity acquires an operating licence for {licence_cost}, amortised on a straight-line basis over a useful life of {useful_life}, with no residual value. The licence is available for use on 1 April, but the entity only starts using it on 1 July. What is the amortisation charge for the year ending 31 December?","es":""},"explanation":{"fr":"","en":"Amortisation begins when the asset is available for use (IAS 38, para. 97), that is 1 April, not on the date of first use. Annual charge: 360,000 / 5 = 72,000; pro rata for 9 months out of 12: 72,000 × 9 / 12 = 54,000. Trap: starting from the date of first use (36,000) or forgetting to prorate (72,000). Rule to remember: amortisation begins when the asset is available for use, even if it is not yet being used (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Starting from the date of first use, i.e. 6 months (36,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"licence_cost","value":"360000","unit":"EUR"},{"id":"useful_life","value":"5","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the licence","es":""},"value":"360000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"5","unit":"YEARS"}],"steps":[{"id":"AMORTISATION_CHARGE","label":{"fr":"","en":"Amortisation charge for the year","es":""},"answer":54000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"AMORTISATION_CHARGE","meaning":{"fr":"","en":"Amortisation charge for the year","es":""},"expression":"(a / b) * 9 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the licence","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":5,"unit":"YEARS"}],"result":54000,"unit":"EUR"}],"rationale":{"fr":"","en":"amortisation begins when the asset is available for use, even if it is not yet being used (IAS 38, para. 97).","es":""},"references":["REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000032","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000032","tested_point":"QST.IAS38.000032","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §97","IAS 38 §98"],"exercise":{"prompt":{"fr":"","en":"An entity acquires for {licence_cost} a manufacturing licence allowing it to produce at most {total_units} of a patented component, within a term of {contract_term}. It expects to reach this cap well before the end of the term: the benefits of the licence are therefore consumed as production occurs. It produces {year_units} in the first year. No residual value is expected. What is the amortisation charge for the first year?","es":""},"explanation":{"fr":"","en":"The amortisation method reflects the pattern in which future economic benefits are expected to be consumed; the straight-line method is used only if that pattern cannot be determined reliably (IAS 38, para. 97). Here, the benefits are consumed with the units produced, which the units of production method, one of the possible methods, reflects (IAS 38, para. 98): 500,000 × 50,000 / 200,000 = 125,000. Case convention: the benefits are consumed at the pace of production. Trap: amortising over the contract term (50,000) or charging everything in the first year (500,000). In the financial statements, 125,000 is recognised in profit or loss and the method is disclosed in the notes (IAS 38, para. 118). Rule to remember: the method reflects the expected pattern of consumption of the benefits (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Amortising on a straight-line basis over the contractual term (50,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"licence_cost","value":"500000","unit":"EUR"},{"id":"total_units","value":"200000","unit":"UNITS"},{"id":"year_units","value":"50000","unit":"UNITS"},{"id":"contract_term","value":"10","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the licence","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Authorised production cap","es":""},"value":"200000","unit":"UNITS"},{"label":{"fr":"","en":"Production in the first year","es":""},"value":"50000","unit":"UNITS"},{"label":{"fr":"","en":"Contractual term","es":""},"value":"10","unit":"YEARS"}],"steps":[{"id":"AMORTISATION_CHARGE","label":{"fr":"","en":"Charge for the first year","es":""},"answer":125000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"AMORTISATION_CHARGE","meaning":{"fr":"","en":"Charge for the first year","es":""},"expression":"a * b / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the licence","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Production in the first year","es":""},"value":50000,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Authorised production cap","es":""},"value":200000,"unit":"UNITS"}],"result":125000,"unit":"EUR","rationale":{"fr":"","en":"Here, the benefits are consumed with the units produced, which the units of production method, one of the possible methods, reflects (IAS 38, para. 98): 500,000 × 50,000 / 200,000 = 125,000.","es":""}}],"rationale":{"fr":"","en":"the method reflects the expected pattern of consumption of the benefits (IAS 38, para. 97).","es":""},"references":["REF.IAS38.97","REF.IAS38.98"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000033","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVIEW"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000033","tested_point":"QST.IAS38.000033","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"review-rule"},"references":["IAS 38 §104","IAS 8 §36"],"exercise":{"prompt":{"fr":"","en":"A technology acquired for {cost} is amortised on a straight-line basis over {original_life}, with no residual value. After {elapsed_years} of amortisation, the year-end review shows that a competitor will make the technology obsolete: the remaining useful life is now only {remaining_life}. The impairment test performed under IAS 36 as a result of this indication shows no impairment loss. What is the charge for the year following the revision?","es":""},"explanation":{"fr":"","en":"A change in useful life, which is reviewed at least at each year-end, is accounted for as a change in accounting estimate (IAS 38, para. 104); its effect is recognised prospectively, in the current and future periods, with no restatement of past periods (IAS 8, para. 36). As the IAS 36 test reveals no impairment loss, the carrying amount at the revision date remains: 600,000 − 600,000 × 4 / 10 = 360,000. It is allocated over the remaining life: 360,000 / 3 = 120,000. Trap: restating past years or dividing the original cost by the remaining life (200,000). Rule to remember: a change in useful life is a change in estimate, applied prospectively (IAS 38, para. 104).","es":""},"common_error":{"fr":"","en":"Dividing the cost by the remaining life (200,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"600000","unit":"EUR"},{"id":"original_life","value":"10","unit":"YEARS"},{"id":"elapsed_years","value":"4","unit":"YEARS"},{"id":"remaining_life","value":"3","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the technology","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Original useful life","es":""},"value":"10","unit":"YEARS"},{"label":{"fr":"","en":"Period already amortised","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Revised remaining useful life","es":""},"value":"3","unit":"YEARS"}],"steps":[{"id":"REVISED_CHARGE","label":{"fr":"","en":"Revised annual charge","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"REVISED_CHARGE","meaning":{"fr":"","en":"Revised annual charge","es":""},"expression":"(a - a * b / c) / d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the technology","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Period already amortised","es":""},"value":4,"unit":"YEARS"},{"symbol":"c","meaning":{"fr":"","en":"Original useful life","es":""},"value":10,"unit":"YEARS"},{"symbol":"d","meaning":{"fr":"","en":"Revised remaining useful life","es":""},"value":3,"unit":"YEARS"}],"result":120000,"unit":"EUR"}],"rationale":{"fr":"","en":"a change in useful life is a change in estimate, applied prospectively (IAS 38, para. 104).","es":""},"references":["REF.IAS38.104","REF.IAS8.36"]}},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000034","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000034","tested_point":"QST.IAS38.000034","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §113"],"exercise":{"prompt":{"fr":"","en":"An entity sells a portfolio of brand licensing rights, acquired for {cost} and amortised by {accumulated_amortisation} at the date of sale. The selling price is {sale_price} and the entity bears {disposal_costs} of legal fees related to the sale. What gain on disposal is recognised in profit or loss?","es":""},"explanation":{"fr":"","en":"The gain or loss on derecognition is the difference between the net disposal proceeds and the carrying amount (IAS 38, para. 113). Net proceeds: 350,000 − 10,000 = 340,000; carrying amount: 800,000 − 500,000 = 300,000; gain: 340,000 − 300,000 = 40,000, recognised in profit or loss but not as revenue. Trap: forgetting the disposal costs (50,000) or comparing the price with the original cost (loss of 450,000). Rule to remember: gain or loss = net disposal proceeds − carrying amount, recognised in profit or loss and not as revenue (IAS 38, para. 113).","es":""},"common_error":{"fr":"","en":"Forgetting the costs of the sale (50,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"800000","unit":"EUR"},{"id":"accumulated_amortisation","value":"500000","unit":"EUR"},{"id":"sale_price","value":"350000","unit":"EUR"},{"id":"disposal_costs","value":"10000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Acquisition cost","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated amortisation","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Selling price","es":""},"value":"350000","unit":"EUR"},{"label":{"fr":"","en":"Costs related to the sale","es":""},"value":"10000","unit":"EUR"}],"steps":[{"id":"GAIN_ON_DISPOSAL","label":{"fr":"","en":"Gain on disposal","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GAIN_ON_DISPOSAL","meaning":{"fr":"","en":"Gain on disposal","es":""},"expression":"(a - b) - (c - d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Selling price","es":""},"value":350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Costs related to the sale","es":""},"value":10000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Acquisition cost","es":""},"value":800000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Accumulated amortisation","es":""},"value":500000,"unit":"EUR"}],"result":40000,"unit":"EUR"}],"rationale":{"fr":"","en":"gain or loss = net disposal proceeds − carrying amount, recognised in profit or loss and not as revenue (IAS 38, para. 113).","es":""},"references":["REF.IAS38.113"]}},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000040","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET","IAS38.DEFINITIONS.CONTROL"],"dimension":"ANALYSIS","context":"V1_QST.IAS38.000040","tested_point":"QST.IAS38.000040","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §8","IAS 38 §13","IAS 38 §15"],"exercise":{"prompt":{"fr":"","en":"An engineering consultancy has recognised the items below as intangible assets. Which one is an error?","es":""},"explanation":{"fr":"","en":"To qualify as an intangible asset, an asset must combine three features: it is not monetary, it can be identified and it has no physical form (IAS 38, para. 8). The entity must also control the resource, meaning it has the power to obtain its future benefits and to restrict the access of others to them (IAS 38, para. 13). A team of skilled staff and the skills gained through training usually give insufficient control over the future benefits to meet the definition (IAS 38, para. 15): the cost of training is an expense.","es":""},"common_error":{"fr":"","en":"Treating the cost of training or employees' skills as an intangible asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Structural calculation software acquired under a multi-year licence.","es":""},"correct":false,"feedback":{"fr":"","en":"This classification is not an error: the licensed software acquired is non-monetary, has no physical substance and is identifiable because it arises from contractual rights (IAS 38, paras. 8 and 12). The entity controls its use through those rights (IAS 38, para. 13). Rule to remember: an acquired licence meets the definition, which staff skills do not (IAS 38, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"The cost of a training programme that has increased the skills of its engineers.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An acquired patent protecting a construction process used by the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"This classification is not an error: a patent is a legal right and therefore identifiable (IAS 38, para. 12), and the entity controls access to the benefits thanks to that legal protection (IAS 38, para. 13). The acquired patent here protects a process the entity uses. Rule to remember: a legal right acquired and used by the entity meets the definition (IAS 38, paras. 12 and 13).","es":""}},{"id":"D","text":{"fr":"","en":"None: all these items provide future economic benefits to the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer concludes there is no error because every item provides benefits. Yet future benefits are not enough: the entity must also control the resource, that is, be able to obtain the benefits and restrict others' access to them (IAS 38, para. 13). Skills gained through training generally do not give such control (IAS 38, para. 15). Rule to remember: future benefits and control are two separate conditions (IAS 38, para. 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000041","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS"],"dimension":"ANALYSIS","context":"V1_QST.IAS38.000041","tested_point":"QST.IAS38.000041","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"excluded-costs"},"references":["IAS 38 §29"],"exercise":{"prompt":{"fr":"","en":"The acquisition schedule for a business software package contains the following lines, all included in the cost of the asset. Which one is a capitalisation error?","es":""},"explanation":{"fr":"","en":"The cost of an intangible asset does not include the costs of launching a product, the costs of a new activity or customer base, such as training, or administration and other general overhead costs (IAS 38, para. 29). The share of the purchasing department's overheads must be recognised as an expense.","es":""},"common_error":{"fr":"","en":"Allocating to the cost of the asset a share of the purchasing department's overheads because it relates to the project.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The purchase price of the licence, net of the discount obtained.","es":""},"correct":false,"feedback":{"fr":"","en":"This inclusion is not an error: the purchase price, net of discounts and rebates, is the basis of the cost of a separately acquired asset (IAS 38, para. 27). The error is in another line of the table. Rule to remember: the purchase price net of discounts is included in the cost (IAS 38, para. 27).","es":""}},{"id":"B","text":{"fr":"","en":"Configuration fees incurred before the software package goes live.","es":""},"correct":false,"feedback":{"fr":"","en":"This inclusion is correct: configuration fees incurred before go-live are costs directly attributable to preparing the asset (IAS 38, paras. 27 and 28). They come before the point at which the asset works as intended. Rule to remember: the configuration needed before go-live goes into the cost (IAS 38, para. 28).","es":""}},{"id":"C","text":{"fr":"","en":"A share of the purchasing department's general overheads allocated to the project.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"None: all these costs relate to the acquired software package.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer judges that all lines are correct because they relate to the package. Yet a link with the project is not enough: administrative and general overheads are excluded from the cost (IAS 38, para. 29), and costs directly attributable to preparing the asset go in (IAS 38, para. 27). Rule to remember: attribution must be direct, not merely related to the project (IAS 38, paras. 27 and 29).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000042","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.PAST_EXPENSES"],"dimension":"ANALYSIS","context":"V1_QST.IAS38.000042","tested_point":"QST.IAS38.000042","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"A controller reviews the year-end entries for a development project whose capitalisation criteria were first met during the year. Which of the proposed entries is an error?","es":""},"explanation":{"fr":"","en":"Expenditure initially recognised as an expense cannot later be recognised as part of the cost of an intangible asset (IAS 38, para. 71). Reinstating last year's expenditure is therefore an error, even though the project now meets the criteria.","es":""},"common_error":{"fr":"","en":"Reinstating as an asset development expenditure expensed last year because the criteria are met this year.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Capitalising the expenditure incurred since the date the criteria were met.","es":""},"correct":false,"feedback":{"fr":"","en":"This entry is not an error: expenditure incurred from the date the criteria are first met makes up the cost of the asset (IAS 38, para. 65). The error is to be found among earlier expenditure. Rule to remember: capitalisation concerns expenditure after the date the criteria are met (IAS 38, para. 65).","es":""}},{"id":"B","text":{"fr":"","en":"Leaving the expenditure of the project's research phase in expense.","es":""},"correct":false,"feedback":{"fr":"","en":"This entry is correct: no intangible asset is recognised for research, and its expenditure is expensed when incurred (IAS 38, para. 54). The research phase of the project therefore stays in profit or loss even if development is later capitalised. Rule to remember: research stays in expenses (IAS 38, para. 54).","es":""}},{"id":"C","text":{"fr":"","en":"Reversing last year's expensed expenditure to recognise it as an asset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"None: the proposed entries all comply with IAS 38.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer concludes that all the entries comply. Yet taking last year's expenditure back to the balance sheet breaches the rule: expenditure initially recognised as an expense is not later included in the cost of an intangible asset (IAS 38, para. 71). A year-end review should spot that reinstatement. Rule to remember: criteria met today apply from that date, with no retroactive effect on past expenses (IAS 38, paras. 65 and 71).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000043","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET"],"dimension":"ANALYSIS","context":"V1_QST.IAS38.000043","tested_point":"QST.IAS38.000043","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §8"],"exercise":{"prompt":{"fr":"","en":"The intangible asset register of a services company contains the following items. Which one does not meet the definition of an intangible asset?","es":""},"explanation":{"fr":"","en":"To qualify as an intangible asset, an asset must combine three features: it is not monetary, it can be identified and it has no physical form (IAS 38, para. 8). A receivable to be settled in cash is a monetary asset: it does not meet the definition, even though it has no physical substance.","es":""},"common_error":{"fr":"","en":"Treating a monetary asset, such as a receivable, as an intangible asset simply because it has no physical form.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A licence to use invoicing software acquired from a vendor.","es":""},"correct":false,"feedback":{"fr":"","en":"This item is indeed an intangible asset: the acquired operating licence is not monetary, can be identified and has no physical form (IAS 38, para. 8). Its classification is correct: the item that does not meet the definition is elsewhere in the register. Rule to remember: non-monetary, identifiable and without physical form characterise an intangible asset (IAS 38, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"A long-term receivable from a customer, to be settled in cash in three years.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A contractual right to use an industry database for five years.","es":""},"correct":false,"feedback":{"fr":"","en":"This item meets the definition: the contractual right to use a database is non-monetary, has no physical form and is identifiable because it arises from contractual rights (IAS 38, paras. 8 and 12). Its classification is correct. Rule to remember: a contractual right can be identifiable even if it cannot be transferred (IAS 38, para. 12).","es":""}},{"id":"D","text":{"fr":"","en":"None: all these items lack physical substance.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer treats the absence of physical substance as the only test. Yet the definition also requires the asset to be non-monetary and identifiable (IAS 38, para. 8): a long-term receivable with no physical substance is still a monetary asset. Rule to remember: absence of physical substance is not enough, the asset must also be non-monetary (IAS 38, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000044","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.BUSINESS_COMBINATION","IAS38.OTHER_ACQUISITIONS.IN_PROCESS_RD"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000044","tested_point":"QST.IAS38.000044","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000008","section_id":"business-combination-rule"},"references":["IAS 38 §33","IAS 38 §34","IAS 38 §42","IAS 38 §43"],"exercise":{"prompt":{"fr":"","en":"The Alto group obtains control of Brio in a business combination. Brio is carrying out a research and development project on a new material; it has always expensed this expenditure and the project is not on its balance sheet. The project is protected by patent filings and an expert estimates its fair value at 4,000,000 at the acquisition date. Alto's finance director proposes to subsume it in goodwill, since it does not appear on Brio's balance sheet. Which treatment should be used in Alto's consolidated financial statements?","es":""},"explanation":{"fr":"","en":"In a business combination, the cost of an acquired intangible asset is its fair value at the acquisition date (IAS 38, para. 33). The acquirer recognises an in-process research and development project of the acquiree separately from goodwill if it meets the definition of an intangible asset (IAS 38, para. 34). The development-phase criteria apply only to expenditure incurred on the project after its acquisition (IAS 38, paras. 42 and 43). Brio's own treatment is irrelevant: Alto recognises the project at 4,000,000, separately from goodwill.","es":""},"common_error":{"fr":"","en":"Folding into goodwill an identifiable in-process research and development project acquired in a business combination.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Subsume it in goodwill, since Brio has always expensed this expenditure.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer follows the acquiree's accounting, which expensed this spending. Yet the acquirer recognises separately from goodwill an in-process research and development project of the acquiree if it meets the definition of an intangible asset (IAS 38, para. 34). Brio's treatment is irrelevant. In the consolidated accounts, goodwill would be overstated by 4,000,000. Rule to remember: an identifiable acquired project is recognised separately from goodwill (IAS 38, para. 34).","es":""}},{"id":"B","text":{"fr":"","en":"Recognise it separately from goodwill, at its fair value at the acquisition date.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Recognise it at the cumulative amount of expenditure incurred by Brio on the project.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer uses the cumulative expenditure incurred by Brio. Yet the cost of an asset acquired in a business combination is its fair value at the acquisition date (IAS 38, para. 33), here estimated at 4,000,000. The acquiree's spending history, expensed in its own books, plays no part in this measurement. Rule to remember: in a business combination, measurement is at fair value, not at cumulative historical spending (IAS 38, para. 33).","es":""}},{"id":"D","text":{"fr":"","en":"Recognise it only once Alto has demonstrated the criteria for the development phase.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer applies the development-phase criteria to the acquired project. Those criteria govern expenditure incurred on the project after its acquisition (IAS 38, paras. 42 and 43), not the recognition of the project itself in the combination (IAS 38, para. 34). Delaying recognition would leave 4,000,000 in goodwill. Rule to remember: the acquired project is recognised at acquisition, subsequent expenditure follows its own rules (IAS 38, paras. 34 and 43).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000045","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA","IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA.ADEQUATE_RESOURCES"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000045","tested_point":"QST.IAS38.000045","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"development-rule"},"references":["IAS 38 §57","IAS 38 §61"],"exercise":{"prompt":{"fr":"","en":"A small company is designing a medical monitoring application. In February, a prototype demonstrates technical feasibility. In May, the board approves the completion and marketing of the project, a market study documents the outlets and time tracking allows costs to be attributed to the project reliably. However, the financing needed to complete the development is obtained only in September, when a bank loan is signed; no agreement or indication of financing existed before September. Marketing begins in January of the following year. From when is the development expenditure capitalised?","es":""},"explanation":{"fr":"","en":"An intangible asset arising from development is recognised only when the entity demonstrates all the criteria, including the availability of adequate technical, financial and other resources to complete the development (IAS 38, para. 57). This availability is demonstrated, for example, by a business plan and, for external financing, by a lender's indication that it is willing to fund the project (IAS 38, para. 61); here, no agreement or indication of financing existed before September. The other criteria are met in May, but financing is secured only in September: that is the first date on which all the criteria are demonstrated.","es":""},"common_error":{"fr":"","en":"Capitalising as soon as technical feasibility or project approval is shown, without waiting for all the criteria, including funding, to be demonstrated.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"From February, when technical feasibility is demonstrated.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks February, the date of technical feasibility. Yet feasibility is only one of the criteria: capitalisation requires demonstrating all the criteria (IAS 38, para. 57), including the financial resources to complete the project (IAS 38, para. 61). In February, neither approval, nor markets, nor funding is established. Expenditure from February to August stays in expenses. Rule to remember: one criterion met is not enough, all must be met (IAS 38, para. 57).","es":""}},{"id":"B","text":{"fr":"","en":"From May, when the board approves the project.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks May, when the board approves the project and the markets and cost tracking are documented. But the criterion of sufficient resources to complete the development is not yet demonstrated: no agreement or indication of funding exists before September (IAS 38, paras. 57 and 61). Expenditure from May to August stays in expenses. Rule to remember: the funding needed is one of the criteria to demonstrate (IAS 38, para. 57).","es":""}},{"id":"C","text":{"fr":"","en":"From September, when the necessary resources are available.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"From January of the following year, when marketing begins.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer waits for the start of marketing. Yet capitalisation is not conditional on going to market: it starts as soon as the entity demonstrates all the criteria in paragraph 57, which is the case in September. Waiting until January would leave expenditure that qualifies for capitalisation in expenses. Rule to remember: recognition follows the demonstration of the criteria, not the marketing date (IAS 38, paras. 57 and 65).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000046","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000046","tested_point":"QST.IAS38.000046","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2"],"exercise":{"prompt":{"fr":"","en":"A mining company incurs expenditure to evaluate the technical feasibility and commercial viability of extracting a deposit it has obtained the right to explore. It also acquires, for its head office, a licence for geological modelling software. The chief accountant wants to apply IAS 38 to both items, on the grounds that neither has physical substance. What is your answer?","es":""},"explanation":{"fr":"","en":"IAS 38 excludes from its scope, in particular, exploration and evaluation assets and expenditure on the development and extraction of minerals (IAS 38, para. 2). This exclusion targets those assets and that expenditure, not all the intangible assets of a mining company: the software licence acquired for the head office falls under IAS 38.","es":""},"common_error":{"fr":"","en":"Applying IAS 38 to exploration and evaluation assets simply because they have no physical substance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He is right: IAS 38 applies to both items, as they lack physical substance.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer follows the manager's reasoning: no physical substance, therefore within IAS 38. Yet exploration and evaluation assets are excluded from the scope of the standard (IAS 38, para. 2). Only the software licence is not caught by an exclusion. Rule to remember: lack of physical substance does not bring an item within the scope of IAS 38 (IAS 38, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"IAS 38 applies to the software licence, not to the exploration and evaluation expenditure.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IAS 38 applies to the exploration and evaluation expenditure, not to the software licence.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer reverses the two cases. Exploration and evaluation assets, along with expenditure on the development and extraction of non-renewable resources, are excluded from the scope (IAS 38, para. 2), whereas an acquired software licence is not subject to any exclusion. Rule to remember: exploration and evaluation expenditure is outside the scope, the software licence is inside it (IAS 38, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"IAS 38 applies to neither item, since the entity is a mining company.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer extends the exclusion to every intangible asset of a mining company. Yet the exclusion covers exploration and evaluation assets and expenditure on the development and extraction of non-renewable resources (IAS 38, para. 2), not the business sector. The head-office software licence stays within the scope. Rule to remember: the exclusion rests on the nature of the item, not on the entity's industry (IAS 38, para. 2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000047","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000047","tested_point":"QST.IAS38.000047","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"contractual-rights-rule"},"references":["IAS 38 §94"],"exercise":{"prompt":{"fr":"","en":"An entity acquires a licence to use a technology for 5 years, renewable once for 5 years. Renewal is automatic, at a negligible cost, and the entity has always renewed this type of licence. However, it plans to replace the technology after 8 years, when its new platform is ready. What useful life should be used for the licence?","es":""},"explanation":{"fr":"","en":"The useful life of an asset arising from contractual rights does not exceed the period of those rights, but may be shorter depending on the period over which the entity expects to use the asset; renewal periods are included only if there is evidence to support renewal without significant cost (IAS 38, para. 94). Here, renewal is supported, which brings the period of the rights to 10 years, but the entity expects to use the technology for only 8 years: the useful life is 8 years.","es":""},"common_error":{"fr":"","en":"Using the initial contractual term alone, or the maximum term of the rights, without regard to the period of expected use.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"5 years, the initial contractual term of the licence alone.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer stops at the initial 5-year term. Yet renewal periods are taken into account when there is evidence of renewal without significant cost (IAS 38, para. 94), which is the case here: renewal is a right, negligible in cost and customary (IAS 38, para. 96). The term of the rights therefore reaches 10 years, and expected use exceeds 5 years. Rule to remember: a supported, low-cost renewal is built into the assessment (IAS 38, para. 94).","es":""}},{"id":"B","text":{"fr":"","en":"8 years, the period of use expected by the entity.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"10 years, the maximum term of the rights, renewal included.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes the maximum term of the rights as the useful life. Yet the term of the rights is a ceiling: useful life may be shorter depending on the period of use expected by the entity (IAS 38, para. 94). The entity plans to replace the technology after 8 years. Amortising over 10 years would defer the charge by two years. Rule to remember: useful life is capped by the term of the rights but also by expected use (IAS 38, para. 94).","es":""}},{"id":"D","text":{"fr":"","en":"An indefinite life, since the licence is renewable at a negligible cost.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer concludes that the life is indefinite because the licence can be renewed at negligible cost. But the rights are limited to a single 5-year renewal, so to 10 years, and the entity knows its expected period of use (IAS 38, para. 94). A foreseeable horizon exists: the life is finite. Rule to remember: low-cost renewal does not make the life indefinite where the rights and the expected use have a limit (IAS 38, para. 94).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000051","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000051","tested_point":"QST.IAS38.000051","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"objective"},"references":["IAS 38 §1"],"exercise":{"prompt":{"fr":"","en":"True or false? The objective of IAS 38 is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another standard.","es":""},"explanation":{"fr":"","en":"True. IAS 38 targets intangible assets whose treatment is not set specifically by another standard; for those, it prescribes the recognition conditions, the measurement of the carrying amount and the disclosures (IAS 38, para. 1). Trap: widening the objective to all intangible items, including those another standard already deals with. Rule to remember: IAS 38 prescribes the accounting treatment of intangible assets that are not dealt with specifically in another standard (IAS 38, para. 1).","es":""},"common_error":{"fr":"","en":"Believing that IAS 38 covers all intangible items, even those another standard deals with specifically.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000052","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000052","tested_point":"QST.IAS38.000051","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"objective"},"references":["IAS 38 §1"],"exercise":{"prompt":{"fr":"","en":"True or false? IAS 38 sets out to govern all intangible assets without exception, including those whose accounting treatment is already set specifically by another standard.","es":""},"explanation":{"fr":"","en":"False. The objective of IAS 38 is limited to intangible assets that are not dealt with specifically in another standard (IAS 38, para. 1). When another standard sets the treatment of an intangible item, that standard applies. Approach: spot the word “all” and ask whether the objective admits an exception. Trap: giving the standard a universal reach. Rule to remember: when another standard sets the treatment of an intangible item, that standard applies, because the objective of IAS 38 is limited to items not dealt with specifically elsewhere (IAS 38, para. 1).","es":""},"common_error":{"fr":"","en":"Applying IAS 38 to an intangible item whose treatment is already set by another standard.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000053","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000053","tested_point":"QST.IAS38.000053","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"objective"},"references":["IAS 38 §1"],"exercise":{"prompt":{"fr":"","en":"True or false? The objective of IAS 38 is limited to the disclosures in the notes; the recognition and measurement of intangible assets are left to the entity's free choice.","es":""},"explanation":{"fr":"","en":"False. IAS 38 prescribes the conditions for recognising an intangible asset, how to measure its carrying amount and the disclosures about it (IAS 38, para. 1). Disclosures in the notes are only one of the three strands of the standard. Approach: count the strands of the objective before judging the statement. Trap: reducing the standard to its disclosures and believing recognition is left free. Rule to remember: IAS 38 prescribes the recognition conditions, the measurement of carrying amount and the disclosures (IAS 38, para. 1).","es":""},"common_error":{"fr":"","en":"Seeing IAS 38 as a mere disclosure standard, with recognition and measurement left free.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000054","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000054","tested_point":"QST.IAS38.000054","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"objective"},"references":["IAS 38 §1"],"exercise":{"prompt":{"fr":"","en":"True or false? In line with its objective, IAS 38 makes the recognition of an intangible asset subject to specified conditions being met.","es":""},"explanation":{"fr":"","en":"True. The objective of IAS 38 includes setting the conditions under which an intangible asset is recognised (IAS 38, para. 1). Intangible expenditure is therefore not capitalised merely because it has been incurred. Approach: link the objective to its first strand, the recognition conditions. Trap: thinking that an intangible expense becomes an asset simply because it was incurred. Rule to remember: IAS 38 sets out the conditions under which an intangible asset is recognised (IAS 38, para. 1).","es":""},"common_error":{"fr":"","en":"Recognising an intangible expenditure as an asset as soon as it is incurred, without checking the recognition conditions.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000055","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000055","tested_point":"QST.IAS38.000055","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"objective"},"references":["IAS 38 §1"],"exercise":{"prompt":{"fr":"","en":"Which of the following topics is not part of the objective of IAS 38?","es":""},"explanation":{"fr":"","en":"IAS 38 prescribes the recognition conditions for intangible assets, the measurement of their carrying amount and the disclosures (IAS 38, para. 1). Tax deduction rules belong to tax law, not to the objective of the standard.","es":""},"common_error":{"fr":"","en":"Taking the tax treatment of software as one of the strands of the objective of IAS 38.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The conditions under which an intangible asset is recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"This theme is indeed part of the objective: IAS 38 prescribes the conditions under which an intangible asset is recognised (IAS 38, para. 1). It is the “recognition” strand of the standard, which decides whether an expenditure becomes an asset. Rule to remember: recognition is one of the three strands of the objective (IAS 38, para. 1).","es":""}},{"id":"B","text":{"fr":"","en":"How to measure the carrying amount of intangible assets.","es":""},"correct":false,"feedback":{"fr":"","en":"This theme is indeed part of the objective: IAS 38 specifies how to measure the carrying amount of intangible assets (IAS 38, para. 1). It is the “measurement” strand, which sets the amount shown on the balance sheet. Rule to remember: measurement of the carrying amount is one of the three strands of the objective (IAS 38, para. 1).","es":""}},{"id":"C","text":{"fr":"","en":"The disclosures about intangible assets.","es":""},"correct":false,"feedback":{"fr":"","en":"This theme is indeed part of the objective: IAS 38 prescribes the disclosures about intangible assets (IAS 38, para. 1). It is the “disclosure” strand, which feeds the notes to the financial statements. Rule to remember: disclosures are one of the three strands of the objective (IAS 38, para. 1).","es":""}},{"id":"D","text":{"fr":"","en":"The tax rules for deducting software.","es":""},"correct":true}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000056","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000056","tested_point":"QST.IAS38.000056","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"objective"},"references":["IAS 38 §1"],"exercise":{"prompt":{"fr":"","en":"Which wording best summarises the objective of IAS 38?","es":""},"explanation":{"fr":"","en":"IAS 38 prescribes the accounting treatment for intangible assets that are not dealt with specifically in another standard: recognition conditions, measurement of the carrying amount and disclosures (IAS 38, para. 1).","es":""},"common_error":{"fr":"","en":"Summarising IAS 38 as a standard on every item without physical substance, without leaving out items covered by another standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Governing every item without physical substance held by an entity, whichever standard otherwise covers it.","es":""},"correct":false,"feedback":{"fr":"","en":"This wording extends the standard to every item without physical substance, whatever standard otherwise applies to it. Yet the objective of IAS 38 is limited to intangible assets not dealt with specifically by another standard (IAS 38, para. 1). An item already covered elsewhere falls outside its scope. Rule to remember: IAS 38 gives way to a standard that deals specifically with the item (IAS 38, para. 1).","es":""}},{"id":"B","text":{"fr":"","en":"Prescribing recognition, measurement and disclosures for intangible assets not dealt with by another standard.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Providing only recommendations for the notes, recognition being left to each entity's practice.","es":""},"correct":false,"feedback":{"fr":"","en":"This wording limits the standard to disclosure recommendations and leaves recognition to each entity's practice. Yet IAS 38 also prescribes the conditions for recognition and the measurement of carrying amount (IAS 38, para. 1): these are requirements, not practices. Rule to remember: the standard sets recognition, measurement and disclosures (IAS 38, para. 1).","es":""}},{"id":"D","text":{"fr":"","en":"Setting the presentation rules for the entity's financial statements as a whole.","es":""},"correct":false,"feedback":{"fr":"","en":"This wording turns IAS 38 into a standard on the presentation of the whole set of financial statements. Yet its objective concerns intangible assets: recognition conditions, measurement of the carrying amount and disclosures about them (IAS 38, para. 1). Rule to remember: the scope of IAS 38 is intangible assets, not the financial statements as a whole (IAS 38, para. 1).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000057","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.OBJECTIVE","IAS38.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000057","tested_point":"QST.IAS38.000057","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"objective"},"references":["IAS 38 §1","IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"Arvelle holds an intangible item whose accounting treatment is prescribed specifically by a standard other than IAS 38. How does it proceed?","es":""},"explanation":{"fr":"","en":"The objective of IAS 38 targets intangible assets not dealt with specifically in another standard (IAS 38, para. 1). When another standard prescribes the accounting for a specific type of intangible asset, the entity applies that standard (IAS 38, para. 3).","es":""},"common_error":{"fr":"","en":"Applying IAS 38 first to an intangible item because it has no physical substance, when another standard deals with it specifically.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It applies IAS 38 first, because the item has no physical substance.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer gives IAS 38 priority because of the absence of physical substance. Yet the test lies elsewhere: IAS 38 covers items not dealt with specifically by another standard (IAS 38, para. 1), and when another standard prescribes their recognition, that standard applies (IAS 38, para. 3). Rule to remember: lack of physical substance does not give IAS 38 priority (IAS 38, para. 3).","es":""}},{"id":"B","text":{"fr":"","en":"It applies IAS 38 for measurement and the other standard for the disclosures only.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer splits the treatment between two standards: IAS 38 for measurement, the other standard for disclosures. Yet when another standard prescribes the recognition of a type of intangible asset, that standard applies to the item (IAS 38, para. 3), with no split by strand. Rule to remember: the specific standard applies to the item, not just to part of its treatment (IAS 38, para. 3).","es":""}},{"id":"C","text":{"fr":"","en":"It applies the other standard.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It applies both standards and retains the treatment giving the lowest carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer applies both standards and keeps the lower result. No choice of the more prudent treatment is provided for: the other standard, which deals with the item specifically, applies (IAS 38, para. 3). Combining two treatments would produce a carrying amount that matches neither standard. Rule to remember: the item falls under the standard that deals with it specifically, with no stacking of standards (IAS 38, para. 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000058","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000058","tested_point":"QST.IAS38.000058","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"objective"},"references":["IAS 38 §1"],"exercise":{"prompt":{"fr":"","en":"According to its objective, what amount does the measurement requirement of IAS 38 relate to?","es":""},"explanation":{"fr":"","en":"IAS 38 specifies how to measure the carrying amount of intangible assets, in addition to the recognition conditions and the disclosures (IAS 38, para. 1). It does not target the value of the entity as a whole, tax or revenue.","es":""},"common_error":{"fr":"","en":"Believing that the measurement requirement of IAS 38 concerns the value of the business or future cash flows rather than the carrying amount of intangible assets.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The carrying amount of intangible assets.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The market value of the entity taken as a whole.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer targets the market value of the entity as a whole. Yet the objective of IAS 38 concerns the carrying amount of intangible assets (IAS 38, para. 1): the standard measures specific assets, not the business. The gap between the value of the business and its assets does not represent the cost of an asset (IAS 38, para. 50). Rule to remember: IAS 38 measures assets, not the value of the business (IAS 38, para. 1).","es":""}},{"id":"C","text":{"fr":"","en":"The amount of tax payable on royalties received.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer applies the measurement requirement to tax payable on royalties. Tax is not part of the objective: the standard specifies the measurement of the carrying amount of intangible assets (IAS 38, para. 1), not of a tax liability. Rule to remember: the amount targeted by the objective is the carrying amount of intangible assets (IAS 38, para. 1).","es":""}},{"id":"D","text":{"fr":"","en":"The future revenue expected from the entity's products.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer targets the future revenue expected from products. Yet the objective of IAS 38 concerns the carrying amount of intangible assets (IAS 38, para. 1), which is a recognised amount, not a sales forecast. Rule to remember: the standard measures the carrying amount of an asset, not the revenue it might generate (IAS 38, para. 1).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000059","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000059","tested_point":"QST.IAS38.000059","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"True or false? A software distributor holds digital licences intended for resale in the ordinary course of its business; these licences fall under IAS 2, not IAS 38.","es":""},"explanation":{"fr":"","en":"True. IAS 38 does not apply to intangible assets held by the entity for sale in the ordinary course of business: these items fall under IAS 2 (IAS 38, para. 3). Approach: ask whether the licences are held for sale in the ordinary course of business. Trap: automatically classifying any asset without physical substance as an intangible asset. Rule to remember: intangible items held for sale in the ordinary course of business fall under IAS 2, not IAS 38 (IAS 38, para. 3).","es":""},"common_error":{"fr":"","en":"Treating as intangible assets digital licences intended for resale in the ordinary course of business.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000060","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000060","tested_point":"QST.IAS38.000060","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"True or false? Since a deferred tax asset has no physical substance, it falls within the scope of IAS 38.","es":""},"explanation":{"fr":"","en":"False. Deferred tax assets are dealt with by IAS 12; IAS 38 does not apply to them (IAS 38, para. 3). Lack of physical substance is not enough to bring an item within the scope of IAS 38. Approach: check whether another standard deals with the item specifically before reasoning on its nature. Trap: concluding from the lack of physical substance that IAS 38 applies. Rule to remember: deferred tax assets fall under IAS 12 and are outside the scope of IAS 38 (IAS 38, para. 3).","es":""},"common_error":{"fr":"","en":"Bringing a deferred tax asset within IAS 38 because it has no physical substance.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000061","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000061","tested_point":"QST.IAS38.000061","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2","IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"True or false? The mere fact that an intangible asset is internally developed or acquired does not determine whether it falls within the scope of IAS 38: both fall within it, unless they are covered by an exclusion.","es":""},"explanation":{"fr":"","en":"True. IAS 38 applies in accounting for intangible assets, except those within the scope of another standard, financial assets, exploration and evaluation assets and expenditure on the development and extraction of non-regenerative resources (IAS 38, para. 2). Being acquired or internally developed is not, in itself, enough to take an item outside the scope. Not all exclusions depend solely on the nature of the item, however: some also target the way it is obtained or held, such as leases of intangible assets accounted for under IFRS 16 or goodwill acquired in a business combination, governed by IFRS 3 (IAS 38, para. 3). Approach: set aside the way the item was obtained as a test, then read the list of exclusions. Trap: believing that an acquired item is within scope and an internally developed one outside it, or the reverse. Rule to remember: IAS 38 applies to acquired and internally developed intangible assets alike, except those caught by an exclusion (IAS 38, paras. 2 and 3).","es":""},"common_error":{"fr":"","en":"Making the way an item was obtained, acquired or internally developed, the test for the scope of IAS 38.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000062","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000062","tested_point":"QST.IAS38.000062","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2","IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"Among the following items held by Orvane, which one falls under IAS 38?","es":""},"explanation":{"fr":"","en":"IAS 38 excludes financial assets from its scope (IAS 38, para. 2), as well as intangible assets held for sale in the ordinary course of business, which fall under IAS 2, and deferred tax assets, which fall under IAS 12 (IAS 38, para. 3). The patent acquired and used in production is not covered by any exclusion.","es":""},"common_error":{"fr":"","en":"Classifying shares, a deferred tax asset or an inventory of licences for resale within IAS 38 simply because they have no physical substance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Listed shares of another company, held as an investment.","es":""},"correct":false,"feedback":{"fr":"","en":"Listed shares held as an investment are financial assets, which the standard excludes from its scope (IAS 38, para. 2). They have no physical substance, but that does not bring them within IAS 38. Rule to remember: an investment in shares is a financial asset, outside the scope of IAS 38 (IAS 38, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"A deferred tax asset recognised at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"A deferred tax asset is dealt with by another standard, IAS 12, which puts it outside the scope of IAS 38 (IAS 38, para. 3). Its lack of physical substance changes nothing. Rule to remember: when another standard deals with an item specifically, IAS 38 does not apply (IAS 38, para. 3).","es":""}},{"id":"C","text":{"fr":"","en":"An acquired patent, used in its production.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Video game licences bought for resale in the ordinary course of its business.","es":""},"correct":false,"feedback":{"fr":"","en":"These video game licences are bought for resale in the ordinary course of business: they fall under IAS 2, not IAS 38 (IAS 38, para. 3). What matters is the intention to resell in the normal course of business, not the intangible nature. Rule to remember: an intangible held for resale in the ordinary course of business falls under IAS 2 (IAS 38, para. 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000063","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000063","tested_point":"QST.IAS38.000063","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"Datalys buys software activation codes from publishers and resells them to consumers; this is its ordinary business. Which standard governs these codes while they are held?","es":""},"explanation":{"fr":"","en":"IAS 38 does not apply to intangible assets held by the entity for sale in the ordinary course of business; these items fall under IAS 2 (IAS 38, para. 3). The codes resold by Datalys as part of its ordinary business are therefore dealt with under IAS 2.","es":""},"common_error":{"fr":"","en":"Applying IAS 38 to activation codes bought to be resold to customers, as if they were fixed assets.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 38, because activation codes have no physical substance.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks IAS 38 because the codes have no physical substance. Yet these codes are bought for resale in Datalys's ordinary course of business: they fall under IAS 2 (IAS 38, para. 3). Lack of physical substance is not enough. Rule to remember: an intangible meant for routine resale is dealt with under IAS 2 while it is held in inventory (IAS 38, para. 3).","es":""}},{"id":"B","text":{"fr":"","en":"IAS 2.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IAS 12, because the codes give rise to a tax deduction on resale.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer invokes IAS 12 on the ground of a tax deduction on resale. Yet IAS 12 is the standard for deferred tax assets, cited by IAS 38 to exclude those assets from its scope (IAS 38, para. 3); it does not govern codes held for resale. Rule to remember: an item held for resale falls under IAS 2, not IAS 12 (IAS 38, para. 3).","es":""}},{"id":"D","text":{"fr":"","en":"None: purchases of codes are recognised as an expense on receipt.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer concludes that no standard applies and expenses the purchases on receipt. Yet a standard does apply: intangible items held for sale in the ordinary course of business fall under IAS 2 (IAS 38, para. 3). Codes bought for resale are inventory, not an immediate expense. Rule to remember: the scope of IAS 38 does not cover these codes, and IAS 2 deals with them (IAS 38, para. 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000064","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000064","tested_point":"QST.IAS38.000064","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"Why does IAS 38 not apply to deferred tax assets, even though they have no physical substance?","es":""},"explanation":{"fr":"","en":"When another standard prescribes the accounting for a specific type of intangible asset, the entity applies that standard; this is the case for deferred tax assets, dealt with by IAS 12 (IAS 38, para. 3). The exclusion therefore stems from the existence of a specific standard, not from a feature of the item.","es":""},"common_error":{"fr":"","en":"Looking for the reason for the exclusion in the nature of the item (identifiability, estimation) rather than in the existence of a specific standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because they are never identifiable.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer attributes the exclusion to a lack of identifiability. Yet the reason is the existence of a specific standard: when another standard prescribes the recognition of a type of intangible asset, that standard applies, such as IAS 12 for deferred tax assets (IAS 38, para. 3). Rule to remember: the exclusion comes from the specific standard, not from a lack of identifiability (IAS 38, para. 3).","es":""}},{"id":"B","text":{"fr":"","en":"Because their amount can never be estimated.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer justifies the exclusion by the impossibility of estimating the amount. The exclusion does not rest on estimation difficulty: it arises because IAS 12 prescribes the recognition of deferred tax assets (IAS 38, para. 3). A hard-to-estimate amount stays within IAS 38 if it is not excluded some other way. Rule to remember: it is the existence of a specific standard that excludes, not estimation difficulty (IAS 38, para. 3).","es":""}},{"id":"C","text":{"fr":"","en":"Because IAS 38 only targets items acquired from third parties.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer limits IAS 38 to items acquired from third parties. Yet IAS 38 also covers internally generated intangible assets; the exclusion of deferred tax assets stems from the existence of IAS 12, not from how the item is obtained (IAS 38, para. 3). Rule to remember: the way of obtaining an item does not decide the scope, the specific standard does (IAS 38, para. 3).","es":""}},{"id":"D","text":{"fr":"","en":"Because another standard, IAS 12, prescribes their accounting.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000065","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000065","tested_point":"QST.IAS38.000065","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2","IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"Which of the following items fall under IAS 38?","es":""},"explanation":{"fr":"","en":"IAS 38 applies to intangible assets, except in particular financial assets (IAS 38, para. 2) and items that another standard deals with specifically, such as intangible assets held for sale in the ordinary course of business, which fall under IAS 2 (IAS 38, para. 3). The licence used internally, the patent and the acquired customer list are not covered by any exclusion.","es":""},"common_error":{"fr":"","en":"Placing in IAS 38 shares held long term or licences held for sale, simply because they have no physical substance.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A payroll software licence used by the entity for its own needs.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An inventory of software licences intended for sale in the ordinary course of business.","es":""},"correct":false,"feedback":{"fr":"","en":"This inventory of licences is meant for sale in the ordinary course of business: it falls under IAS 2, not IAS 38 (IAS 38, para. 3). That the licences are intangible changes nothing. Rule to remember: what is held for sale in the ordinary course of business is outside the scope of IAS 38 (IAS 38, para. 3).","es":""}},{"id":"C","text":{"fr":"","en":"A manufacturing patent acquired from an inventor.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Shares in an unlisted company held for the long term.","es":""},"correct":false,"feedback":{"fr":"","en":"Shares in an unlisted company are financial assets, which the standard excludes from its scope (IAS 38, para. 2), whatever the holding period. Holding them for a long time does not make them intangible assets. Rule to remember: a financial asset is outside the scope of IAS 38, even when held long term (IAS 38, para. 2).","es":""}},{"id":"E","text":{"fr":"","en":"A customer list acquired from a competitor.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000066","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000066","tested_point":"QST.IAS38.000066","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2","IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, the software publisher Kelvane holds the following items. Which ones are dealt with under a standard other than IAS 38?","es":""},"explanation":{"fr":"","en":"IAS 38 excludes financial assets, such as an investment in bonds (IAS 38, para. 2). Nor does it apply to items that another standard deals with specifically: intangible assets held for sale in the ordinary course of business fall under IAS 2 and deferred tax assets under IAS 12 (IAS 38, para. 3). The software for internal use and the acquired brand remain within the scope of IAS 38.","es":""},"common_error":{"fr":"","en":"Keeping in IAS 38 a deferred tax asset, a bond investment or an inventory of licences, on the belief that only tangible assets are outside it.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Software licences it holds for sale in the ordinary course of its business.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Accounting software acquired for its internal use.","es":""},"correct":false,"feedback":{"fr":"","en":"This accounting software is acquired for Kelvane's internal use: it is not held for sale and no exclusion applies to it, so it does fall under IAS 38 (IAS 38, paras. 2 and 3). That Kelvane is a software publisher does not change the treatment of software used internally. Rule to remember: it is the use of the item that determines its standard (IAS 38, para. 3).","es":""}},{"id":"C","text":{"fr":"","en":"A deferred tax asset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An investment in bonds issued by a public authority.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A brand acquired from a competitor.","es":""},"correct":false,"feedback":{"fr":"","en":"This brand acquired from a competitor is an intangible asset that neither financial assets nor another standard exclude: it falls under IAS 38 (IAS 38, paras. 2 and 3). An acquired brand is not treated as inventory held for sale. Rule to remember: a brand acquired and used by the entity stays within the scope of IAS 38 (IAS 38, paras. 2 and 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000067","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_VG.IAS38.000101","tested_point":"VG.IAS38.000101","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2"],"exercise":{"prompt":{"fr":"","en":"The Nordeve group operates natural gas fields. At the reporting date, it reports expenditure on the development and extraction of a new field, predictive maintenance software acquired for its facilities and shares in a drilling company held as an investment, without control or significant influence. The management controller wants to account for all three items under IAS 38, as they lack physical substance. Which analysis do you retain?","es":""},"explanation":{"fr":"","en":"IAS 38 excludes from its scope financial assets and expenditure on the development and extraction of non-regenerative resources, such as natural gas (IAS 38, para. 2). The shares, held as an investment without control or significant influence, are financial assets and the field expenditure falls within the second exclusion. The acquired software is not covered by any exclusion and falls under IAS 38.","es":""},"common_error":{"fr":"","en":"Applying IAS 38 to development and extraction expenditure on a deposit and to investment securities, for lack of physical substance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The controller is right: all three items fall under IAS 38.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer follows the management controller: no physical substance, so everything goes into IAS 38. Yet two of the three items are excluded from the scope: financial assets and expenditure on the development and extraction of non-renewable resources (IAS 38, para. 2). Only the acquired software stays in the standard. Rule to remember: lack of physical substance does not replace reading the exclusions (IAS 38, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"Only the software falls under IAS 38; the field expenditure and the shares are excluded from the scope.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The software and the field expenditure fall under IAS 38; only the shares are excluded.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer places the deposit expenditure within IAS 38. Yet natural gas is a non-renewable resource: expenditure on the development and extraction of such a resource is excluded from the scope (IAS 38, para. 2). According to this answer only the securities are excluded, whereas two items are. Rule to remember: expenditure on the development and extraction of a non-renewable resource is outside the scope of IAS 38 (IAS 38, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"The software and the shares fall under IAS 38; only the field expenditure is excluded.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer places the shares within IAS 38. Yet shares held as an investment, without control or significant influence, are financial assets, excluded from the scope (IAS 38, para. 2). They have no physical substance, but that is not enough. According to this answer only the deposit expenditure is excluded, whereas the securities are too. Rule to remember: an investment in shares is a financial asset outside the scope of IAS 38 (IAS 38, para. 2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000068","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_VG.IAS38.000101","tested_point":"VG.IAS38.000101","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"The Lumbra studio designs games and also buys game licences from other publishers to resell them to distributors, which is part of its ordinary business. At the reporting date, it holds these licences intended for resale, a deferred tax asset and a game engine licence acquired to design its own games. Which items fall under IAS 38?","es":""},"explanation":{"fr":"","en":"IAS 38 does not apply to intangible assets held for sale in the ordinary course of business, which fall under IAS 2, or to deferred tax assets, which fall under IAS 12 (IAS 38, para. 3). The game engine licence, used to design the games, is not held for sale: it falls under IAS 38.","es":""},"common_error":{"fr":"","en":"Classifying in IAS 38 licences held for resale and a deferred tax asset because they have no physical substance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"All three items, since none has physical substance.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer places all three items in IAS 38 for lack of physical substance. Yet the licences held for resale fall under IAS 2 and the deferred tax asset under IAS 12: another standard deals with them specifically (IAS 38, para. 3). Only the graphics-engine licence stays in IAS 38. Rule to remember: lack of physical substance is not enough, you must check whether another standard applies (IAS 38, para. 3).","es":""}},{"id":"B","text":{"fr":"","en":"The licences intended for resale and the game engine licence; the deferred tax asset falls under IAS 12.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer leaves the licences held for resale in IAS 38, whereas the studio buys them to resell in the ordinary course of its business: they fall under IAS 2 (IAS 38, para. 3). Its game design activity does not change the fate of these licences. Rule to remember: the intention to resell in the normal course of business prevails over the intangible nature (IAS 38, para. 3).","es":""}},{"id":"C","text":{"fr":"","en":"The game engine licence only; the licences intended for resale fall under IAS 2 and the deferred tax asset under IAS 12.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"None, because a video game studio applies IAS 2 to all its intangible items.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer applies IAS 2 to all of the studio's intangible items. Yet IAS 2 covers items held for sale in the ordinary course of business (IAS 38, para. 3): the graphics-engine licence is used to design games and falls under IAS 38. Rule to remember: the industry does not decide the standard, the use of each item does (IAS 38, para. 3).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS38.000069","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000069","tested_point":"QST.IAS38.000069","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2","IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"Alteris, which develops applications, holds three items without physical substance: a bank term deposit, rights to operate an application it developed and uses to provide its services, and a deferred tax asset. The chief financial officer concludes that only the operating rights fall under IAS 38. Which argument best supports this conclusion?","es":""},"explanation":{"fr":"","en":"IAS 38 excludes financial assets, such as a bank deposit (IAS 38, para. 2), and does not apply to deferred tax assets, dealt with by IAS 12 (IAS 38, para. 3). The operating rights to the application are not covered by any exclusion: they fall under IAS 38, whether the item was developed internally or acquired.","es":""},"common_error":{"fr":"","en":"Justifying an exclusion by maturity or uncertainty of the amount rather than by the nature of the item and the existence of another standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The deposit is excluded because it is short-term, and the deferred tax asset because its amount is uncertain.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer explains the exclusions by maturity and uncertainty. Yet the deposit is excluded because it is a financial asset (IAS 38, para. 2), and the deferred tax asset because IAS 12 deals with it specifically (IAS 38, para. 3). Neither the term of a deposit nor the uncertainty of an amount defines the scope. Rule to remember: an exclusion rests on the category of the item, not on its maturity (IAS 38, paras. 2 and 3).","es":""}},{"id":"B","text":{"fr":"","en":"The operating rights fall under IAS 38 because they are the only item developed by the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer makes internal development the reason for being in IAS 38. Yet the way an item is obtained is not the test: the operating rights fall under IAS 38 because no exclusion applies to them, whether developed or acquired (IAS 38, paras. 2 and 3). Rule to remember: the scope depends on the standard's exclusions, not on how an item is obtained (IAS 38, paras. 2 and 3).","es":""}},{"id":"C","text":{"fr":"","en":"IAS 38 only applies to items that directly generate revenue.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer limits IAS 38 to items that directly generate revenue. No condition of the kind appears in the scope of the standard, which is defined by its exclusions (IAS 38, paras. 2 and 3). Operating rights are in scope without having to show their contribution to revenue. Rule to remember: the scope is defined by the exclusions, not by direct generation of revenue (IAS 38, paras. 2 and 3).","es":""}},{"id":"D","text":{"fr":"","en":"The deposit is a financial asset excluded from the scope, the deferred tax asset falls under IAS 12, and no exclusion targets the rights.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000070","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000070","tested_point":"QST.IAS38.000070","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2"],"exercise":{"prompt":{"fr":"","en":"True or false? Expenditure on the development and extraction of minerals, oil or other non-regenerative resources is excluded from the scope of IAS 38.","es":""},"explanation":{"fr":"","en":"True. IAS 38 expressly excludes from its scope expenditure on the development and extraction of non-regenerative resources, such as minerals or oil (IAS 38, para. 2). This expenditure is governed by provisions other than those of IAS 38. Approach: spot the exclusion that matches the expenditure described. Trap: confusing the development of a resource, such as a deposit, with the development of an intangible asset under IAS 38. Rule to remember: expenditure on the development and extraction of non-renewable resources, such as minerals or oil, is excluded from the scope of IAS 38 (IAS 38, para. 2).","es":""},"common_error":{"fr":"","en":"Confusing the development of a deposit with the development of an intangible asset under IAS 38.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000071","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000071","tested_point":"QST.IAS38.000071","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2"],"exercise":{"prompt":{"fr":"","en":"True or false? The exploration and evaluation assets of an oil company fall under IAS 38, since they have no physical substance.","es":""},"explanation":{"fr":"","en":"False. Exploration and evaluation assets are among the express exclusions from the scope of IAS 38 (IAS 38, para. 2). Lack of physical substance is not enough to bring them within the scope of the standard. Approach: set the physical argument aside and check the list of exclusions. Trap: believing that lack of physical substance is enough to bring exploration and evaluation assets into IAS 38. Example: expenditure to assess the feasibility of extraction stays outside the scope of the standard. Rule to remember: exploration and evaluation assets are excluded from the scope of IAS 38 (IAS 38, para. 2).","es":""},"common_error":{"fr":"","en":"Bringing an oil company's exploration and evaluation assets into IAS 38 for lack of physical substance.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000072","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000072","tested_point":"QST.IAS38.000072","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"Which of these exclusions from the scope of IAS 38 is correctly matched with the standard that deals with the item?","es":""},"explanation":{"fr":"","en":"IAS 38 does not apply to intangible assets held for sale in the ordinary course of business, which fall under IAS 2, or to deferred tax assets, which fall under IAS 12 (IAS 38, para. 3).","es":""},"common_error":{"fr":"","en":"Pairing the IAS 38 exclusions with the wrong standard, swapping IAS 2 and IAS 12.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Intangible assets held for sale in the ordinary course of business: IAS 2.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Deferred tax assets: IAS 2.","es":""},"correct":false,"feedback":{"fr":"","en":"This pairing links deferred tax assets to IAS 2, which concerns items held for sale in the ordinary course of business. Deferred tax assets fall under IAS 12 (IAS 38, para. 3). Rule to remember: deferred tax assets, IAS 12; items held for sale, IAS 2 (IAS 38, para. 3).","es":""}},{"id":"C","text":{"fr":"","en":"Deferred tax assets: IAS 38 by analogy, as no specific standard exists.","es":""},"correct":false,"feedback":{"fr":"","en":"This pairing applies IAS 38 by analogy to deferred tax assets, for lack of a specific standard. Yet a specific standard exists, IAS 12, and it is the one that applies to these assets (IAS 38, para. 3). Reasoning by analogy is not needed when a standard deals directly with the item. Rule to remember: the specific standard prevails over IAS 38 (IAS 38, para. 3).","es":""}},{"id":"D","text":{"fr":"","en":"Intangible assets held for sale in the ordinary course of business: IAS 12.","es":""},"correct":false,"feedback":{"fr":"","en":"This pairing swaps the two standards: it links items held for sale to IAS 12, whereas they fall under IAS 2 (IAS 38, para. 3). IAS 12 deals with deferred tax assets. Rule to remember: held for sale in the ordinary course of business, IAS 2; deferred tax, IAS 12 (IAS 38, para. 3).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000073","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000073","tested_point":"QST.IAS38.000073","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2"],"exercise":{"prompt":{"fr":"","en":"The oil company Brentano incurs several items of expenditure during the year. Which one is excluded from the scope of IAS 38?","es":""},"explanation":{"fr":"","en":"IAS 38 excludes from its scope expenditure on the development and extraction of non-regenerative resources such as oil (IAS 38, para. 2). The word development is not enough: developing software, or acquiring a licence or a patent, is not covered by any exclusion.","es":""},"common_error":{"fr":"","en":"Seeing an exclusion whenever the word “development” appears, including for software or a patent.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Expenditure on developing an oil field with a view to its extraction.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Expenditure on developing drilling control software for its teams.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer excludes the development of drilling-control software. The exclusion covers the development and extraction of non-renewable resources, not software development (IAS 38, para. 2). The software is an intangible of the entity, which follows the rules of IAS 38. Rule to remember: the word “development” is not enough, the resource must be non-renewable (IAS 38, para. 2).","es":""}},{"id":"C","text":{"fr":"","en":"The acquisition of a licence for seismic data processing software.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer excludes a seismic-data processing software licence acquired by the company. An acquired licence is not caught by any exclusion, even in the oil sector (IAS 38, para. 2). It does not concern the resource itself but a working tool. Rule to remember: the exclusion concerns expenditure on the resource, not tools acquired by the entity (IAS 38, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"The acquisition of a patent protecting a drilling technique.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer excludes a patent protecting a drilling technique. An acquired patent is not caught by any exclusion, even if it relates to an oil-related process (IAS 38, para. 2). It remains an intangible asset of the entity. Rule to remember: an acquired patent stays within the scope of IAS 38, whatever the sector (IAS 38, para. 2).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000074","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000074","tested_point":"QST.IAS38.000074","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2"],"exercise":{"prompt":{"fr":"","en":"A trainee at Corvel Bank classifies debt securities held to maturity as intangible assets, on the grounds that they lack physical substance and are held for the long term. What error does he make?","es":""},"explanation":{"fr":"","en":"Financial assets are excluded from the scope of IAS 38 (IAS 38, para. 2). Debt securities are financial assets: neither the lack of physical substance nor the holding period brings them within the scope of the standard.","es":""},"common_error":{"fr":"","en":"Classifying debt securities held to maturity as intangible assets because they have no physical substance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: long-term securities without physical substance fall under IAS 38.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer endorses the trainee because the securities are held long term and have no physical substance. Yet these debt securities are financial assets, excluded from the scope of IAS 38 (IAS 38, para. 2). Neither the lack of physical form nor the holding period changes that nature. Rule to remember: a financial asset stays outside the scope of IAS 38 whatever its holding period (IAS 38, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"He forgets that financial assets are excluded from the scope of IAS 38.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"He forgets that debt securities have physical substance.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer locates the error in a supposed physical substance of the debt securities. Yet the trainee is right that the securities have no physical form: the error concerns the scope of the standard, which excludes financial assets (IAS 38, para. 2). Rule to remember: lack of physical substance is true here, but it does not bring a financial asset into IAS 38 (IAS 38, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"He should have applied IAS 38 only if they were held for the short term.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer makes the application of IAS 38 depend on a short-term holding. Yet the holding period is not a test: financial assets are excluded from the scope of the standard (IAS 38, para. 2), whether held short or long term. Rule to remember: the holding period does not bring a financial asset into IAS 38 (IAS 38, para. 2).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000075","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000075","tested_point":"QST.IAS38.000075","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2"],"exercise":{"prompt":{"fr":"","en":"Which of the following items are among the express exclusions from the scope of IAS 38?","es":""},"explanation":{"fr":"","en":"IAS 38 excludes from its scope intangible assets within the scope of another standard, financial assets, exploration and evaluation assets and expenditure on the development and extraction of non-regenerative resources, such as minerals (IAS 38, para. 2). Acquired patents and software remain within the scope.","es":""},"common_error":{"fr":"","en":"Listing among the exclusions ordinary acquired items, such as a patent or software, instead of financial assets or exploration and evaluation assets.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Patents acquired from third parties.","es":""},"correct":false,"feedback":{"fr":"","en":"A patent acquired from third parties is not caught by any exclusion: it falls under IAS 38 (IAS 38, para. 2). It is the very type of intangible asset the standard governs. Rule to remember: the exclusions target specific categories, not ordinary acquired items such as a patent (IAS 38, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"Financial assets.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Exploration and evaluation assets.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Management software acquired for internal use.","es":""},"correct":false,"feedback":{"fr":"","en":"Management software acquired for internal use is not caught by any exclusion: it falls under IAS 38 (IAS 38, para. 2). It is non-monetary, identifiable and without physical form, so within scope. Rule to remember: software acquired for the entity's needs is not an exclusion (IAS 38, para. 2).","es":""}},{"id":"E","text":{"fr":"","en":"Expenditure on the development and extraction of minerals.","es":""},"correct":true}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000076","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000076","tested_point":"QST.IAS38.000076","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §2","IAS 38 §3"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about the exclusions from the scope of IAS 38 are correct?","es":""},"explanation":{"fr":"","en":"IAS 38 excludes financial assets, exploration and evaluation assets and expenditure on the development and extraction of non-regenerative resources, without targeting all the intangible assets of an entity in that sector (IAS 38, para. 2). When another standard prescribes the accounting for a specific type of intangible asset, it applies: IAS 2 for items held for sale in the ordinary course of business, IAS 12 for deferred tax assets (IAS 38, para. 3).","es":""},"common_error":{"fr":"","en":"Extending the exclusion of exploration and evaluation assets to all the intangible assets of a mining company.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The exclusion of exploration and evaluation assets removes all the intangible assets of a mining company.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement gives the exclusion too wide a reach. The exclusion covers exploration and evaluation assets and expenditure on the development and extraction of non-renewable resources (IAS 38, para. 2), not every intangible asset of a mining company. Its software licence or acquired patents stay within scope. Rule to remember: the exclusion targets specific assets, not a whole sector (IAS 38, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"The exclusion of financial assets applies even though they have no physical substance.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Intangible assets held for sale in the ordinary course of business are dealt with under IAS 2.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A deferred tax asset relating to an intangible asset falls under IAS 38 rather than IAS 12.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement puts a deferred tax asset linked to an intangible asset under IAS 38. Deferred tax assets fall under IAS 12 regardless of the asset they relate to (IAS 38, para. 3). A link with an intangible does not change the applicable standard. Rule to remember: a deferred tax asset is dealt with by IAS 12 (IAS 38, para. 3).","es":""}},{"id":"E","text":{"fr":"","en":"When another standard prescribes the accounting for a specific type of intangible asset, that standard applies.","es":""},"correct":true}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000077","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000077","tested_point":"QST.IAS38.000077","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §8"],"exercise":{"prompt":{"fr":"","en":"True or false? A monetary asset, such as a bank deposit, can be an intangible asset as long as it has no physical substance.","es":""},"explanation":{"fr":"","en":"False. To qualify as an intangible asset, an asset must combine three features: it is not monetary, it can be identified and it has no physical form (IAS 38, para. 8). A bank deposit is a monetary asset: lack of physical substance is not enough. Approach: check the first feature of the definition, non-monetary nature. Trap: treating the absence of physical substance as the only test. A bank deposit is settled in cash: it is a monetary asset. Rule to remember: a monetary asset cannot be an intangible asset, even without physical form (IAS 38, para. 8).","es":""},"common_error":{"fr":"","en":"Seeing a bank deposit as an intangible asset because it has no physical substance.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000078","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET","IAS38.DEFINITIONS.CONTROL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000078","tested_point":"QST.IAS38.000078","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §8","IAS 38 §15"],"exercise":{"prompt":{"fr":"","en":"True or false? A team of highly qualified engineers, recruited at great expense by Ventelis, generally does not meet the definition of an intangible asset.","es":""},"explanation":{"fr":"","en":"True. An intangible asset must first be an asset, that is a resource controlled by the entity, which is not monetary, can be identified and has no physical form (IAS 38, para. 8). A team of skilled staff generally does not give the entity sufficient control over the future benefits; technical talent meets the definition only if it is protected by legal rights (IAS 38, para. 15). Approach: ask whether the entity controls the resource, beyond its usefulness. Trap: recognising as an asset the cost of recruiting or training a team because it will bring benefits. Rule to remember: a team of skilled staff does not generally give sufficient control over future benefits; only talent protected by legal rights can meet the definition (IAS 38, para. 15).","es":""},"common_error":{"fr":"","en":"Recognising as an asset the cost of recruiting or training a skilled team, without demonstrated control.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000079","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000079","tested_point":"QST.IAS38.000079","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §8"],"exercise":{"prompt":{"fr":"","en":"Which of these features is not required by the definition of an intangible asset?","es":""},"explanation":{"fr":"","en":"To qualify as an intangible asset, an asset must combine three features: it is not monetary, it can be identified and it has no physical form (IAS 38, para. 8). The definition imposes no particular way of obtaining it: an internally generated item can also meet it.","es":""},"common_error":{"fr":"","en":"Adding to the definition of an intangible asset a condition that it be acquired from a third party.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Being a non-monetary asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This feature is indeed required: an asset must be non-monetary to be an intangible asset (IAS 38, para. 8). A monetary asset, such as a receivable, is not one, even without physical substance. Rule to remember: being a non-monetary asset is the first feature of the definition (IAS 38, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"Being identifiable.","es":""},"correct":false,"feedback":{"fr":"","en":"This feature is indeed required: the asset must be identifiable, that is, separable or arising from contractual or other legal rights (IAS 38, paras. 8 and 12). Without identifiability, a diffuse advantage does not meet the definition. Rule to remember: identifiability is part of the definition (IAS 38, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"Lacking physical substance.","es":""},"correct":false,"feedback":{"fr":"","en":"This feature is indeed required: the asset must lack physical substance to be an intangible asset (IAS 38, para. 8). An asset with a physical form belongs rather to another category of assets. Rule to remember: lack of physical substance is one of the three features of the definition (IAS 38, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"Having been acquired from a third party.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000080","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET","IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000080","tested_point":"QST.IAS38.000080","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §8","IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"Brevane obtains from a public authority a legal right to operate a radio frequency. This right can be neither sold nor transferred to a third party. Is it identifiable within the definition of an intangible asset?","es":""},"explanation":{"fr":"","en":"The definition of an intangible asset requires an identifiable asset (IAS 38, para. 8). An asset is identifiable if it is separable or arises from contractual or legal rights, whether or not those rights are transferable or separable (IAS 38, para. 12). Brevane's legal right is therefore identifiable.","es":""},"common_error":{"fr":"","en":"Requiring both separability and legal rights, or an active market, before treating an asset as identifiable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, because a right that cannot be sold is not separable, and therefore not identifiable.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer requires separability for identifiability. Yet separability is only one of two routes: an asset is also identifiable if it arises from contractual or other legal rights, even if not transferable or separable (IAS 38, para. 12). Brévane's legal right is therefore enough. Rule to remember: separable or arising from legal or contractual rights, either route is enough (IAS 38, para. 12).","es":""}},{"id":"B","text":{"fr":"","en":"Yes, because it arises from a legal right, even if it is neither transferable nor separable.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes, but only if Brevane intends to sell it some day.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer makes identifiability depend on the intention to transfer the right. Yet intention does not come into it: an asset is separable whether or not the entity intends to transfer it, and a legal right makes the asset identifiable with no intention condition (IAS 38, para. 12). Rule to remember: identifiability does not depend on the entity's intention (IAS 38, para. 12).","es":""}},{"id":"D","text":{"fr":"","en":"No, because identifiability requires an active market for the right.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer requires an active market for the right to be identifiable. Yet identifiability rests on separability or on contractual or legal rights (IAS 38, para. 12); the definition of an intangible asset mentions no active market (IAS 38, para. 8). Rule to remember: the active market matters for revaluation, not for identifiability (IAS 38, para. 12).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000081","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET","IAS38.DEFINITIONS.CONTROL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000081","tested_point":"QST.IAS38.000081","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §8","IAS 38 §15","IAS 38 §16"],"exercise":{"prompt":{"fr":"","en":"Lindor reviews four resources. Which one meets the definition of an intangible asset?","es":""},"explanation":{"fr":"","en":"To qualify as an intangible asset, an asset must combine three features: it is not monetary, it can be identified and it has no physical form (IAS 38, para. 8). Skills resulting from training generally do not provide sufficient control (IAS 38, para. 15); without legal rights or exchange transactions, a non-contractual customer base is not sufficiently controlled (IAS 38, para. 16). A bank deposit is a monetary asset. Only the acquired licence meets the definition.","es":""},"common_error":{"fr":"","en":"Accepting as an intangible asset skills, a loyal customer base without contracts or a locked bank deposit.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The skills acquired by its sales staff during an internal training cycle.","es":""},"correct":false,"feedback":{"fr":"","en":"Skills acquired by salespeople during in-house training do not generally give the entity sufficient control over future benefits (IAS 38, para. 15). Without control, they are not an asset. The cost of that training is an expense. Rule to remember: staff skills are generally not an intangible asset (IAS 38, para. 15).","es":""}},{"id":"B","text":{"fr":"","en":"A loyal customer base, without contracts, for which no exchange transactions for similar relationships exist.","es":""},"correct":false,"feedback":{"fr":"","en":"A loyal customer base, with no contract or legal right and no exchange transactions for similar relationships, is generally not sufficiently controlled by the entity (IAS 38, para. 16). Customers remain free to leave. Rule to remember: without a means of controlling customer loyalty, a customer relationship is not an intangible asset (IAS 38, para. 16).","es":""}},{"id":"C","text":{"fr":"","en":"A transferable licence to exploit a patented technology, acquired from its inventor.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A foreign currency bank deposit blocked for two years.","es":""},"correct":false,"feedback":{"fr":"","en":"A foreign-currency bank deposit is a monetary asset, which a lock-up period does not change: it does not meet the definition of an intangible asset (IAS 38, para. 8). Being locked for two years does not make it non-monetary. Rule to remember: a monetary asset is not an intangible asset, whatever its lock-up period (IAS 38, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000082","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000082","tested_point":"QST.IAS38.000082","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §8"],"exercise":{"prompt":{"fr":"","en":"Which of the following features are part of the definition of an intangible asset?","es":""},"explanation":{"fr":"","en":"To qualify as an intangible asset, an asset must combine three features: it is not monetary, it can be identified and it has no physical form (IAS 38, para. 8). The definition depends neither on how the asset was obtained nor on whether its useful life is finite.","es":""},"common_error":{"fr":"","en":"Adding to the definition features that are not in it, such as an internal origin or a finite useful life.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A non-monetary asset.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An asset generated by the entity itself.","es":""},"correct":false,"feedback":{"fr":"","en":"This feature is not part of the definition: an intangible asset can be acquired or generated by the entity, and how it was obtained is not one of its features. The definition rests on three features: a non-monetary, identifiable asset without physical substance (IAS 38, para. 8). A purchased software package and an internally developed one are first tested against the same features. Rule to remember: the definition looks at the nature of the asset, not at how the entity came to have it.","es":""}},{"id":"C","text":{"fr":"","en":"An identifiable asset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An asset without physical substance.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"An asset whose useful life is finite.","es":""},"correct":false,"feedback":{"fr":"","en":"A finite useful life is not a feature of the definition: the item must be a non-monetary, identifiable asset without physical substance (IAS 38, para. 8). To decide whether an item is an intangible asset, one therefore does not ask how long it will be used. A ten-year licence and a right with no announced end date are tested against the same three features. Rule to remember: useful life plays no part in the definition of an intangible asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000083","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET","IAS38.DEFINITIONS.CONTROL","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000083","tested_point":"QST.IAS38.000083","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §8","IAS 38 §15","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"The consultancy Talvio reviews the following items. Which ones can meet the definition of an intangible asset?","es":""},"explanation":{"fr":"","en":"To qualify as an intangible asset, an asset must combine three features: it is not monetary, it can be identified and it has no physical form (IAS 38, para. 8). Skills resulting from training generally do not provide sufficient control over future benefits (IAS 38, para. 15), and both training and advertising expenditure are among the items recognised as an expense (IAS 38, para. 69). The patent, the contractual right and the acquired licence can meet the definition.","es":""},"common_error":{"fr":"","en":"Capitalising a training programme or an advertising campaign because they are expected to produce future benefits.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An acquired patent protecting a data analysis method.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A programme training its consultants in new audit methods.","es":""},"correct":false,"feedback":{"fr":"","en":"Training is indeed an intangible expenditure, but that does not make it an intangible asset: the skills acquired generally do not give enough control over the future benefits (IAS 38, para. 15), and training is among the expenditure recognised as an expense (IAS 38, para. 69). At Talvio, the trained consultants can leave with their skills. Rule to remember: an intangible expenditure does not become an asset without identifiability and control of the item.","es":""}},{"id":"C","text":{"fr":"","en":"A contractual right to use an industry database for four years.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An advertising campaign to raise awareness of the firm.","es":""},"correct":false,"feedback":{"fr":"","en":"An advertising campaign makes the firm better known but creates no recognisable asset: advertising is recognised as an expense as soon as the entity receives the services (IAS 38, para. 69). The patent, the contractual right and the acquired licence, by contrast, are specific items from which Talvio can obtain the benefits. For example, the advertising agency's invoice goes straight to expense. Rule to remember: advertising and promotion are expenses, not intangible assets.","es":""}},{"id":"E","text":{"fr":"","en":"A project management software licence acquired from a vendor.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000084","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"ANALYSIS","context":"V1_QST.IAS38.000084","tested_point":"QST.IAS38.000084","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §8","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, Ombrel presents the items below as intangible assets. Which one is a classification error?","es":""},"explanation":{"fr":"","en":"To qualify as an intangible asset, an asset must combine three features: it is not monetary, it can be identified and it has no physical form (IAS 38, para. 8). Expenditure on reorganising all or part of the entity is among the items recognised as an expense (IAS 38, para. 69): presenting it as an intangible asset is an error.","es":""},"common_error":{"fr":"","en":"Presenting as intangible assets any expenditure without physical substance, such as reorganisation costs.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A licence to use a brand granted by contract for six years.","es":""},"correct":false,"feedback":{"fr":"","en":"This licence is correctly classified: it is a right acquired by contract, non-monetary and without physical substance, which meets the features of the definition (IAS 38, para. 8). The classification error lies in the reorganisation costs, which are expenditure recognised as an expense (IAS 38, para. 69). A trademark licence granted for six years is a right, not a mere expense. Rule to remember: a right acquired by contract can be presented among intangible assets, a reorganisation cannot.","es":""}},{"id":"B","text":{"fr":"","en":"Scheduling software acquired from a vendor and used by its workshops.","es":""},"correct":false,"feedback":{"fr":"","en":"This acquired software is correctly classified: it is non-monetary, identifiable and without physical substance, which meets the definition (IAS 38, para. 8). The error lies elsewhere, in the reorganisation costs, which are expenses (IAS 38, para. 69). Software bought from a vendor and used in the workshops is a common example of an acquired intangible asset. Rule to remember: acquired software can meet the definition, whereas reorganisation expenditure is an expense.","es":""}},{"id":"C","text":{"fr":"","en":"The costs incurred to reorganise its logistics department.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"None: all these items lack physical substance.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of physical substance is a feature of the definition, but it is not sufficient: an entity's reorganisation costs are expenditure recognised as an expense (IAS 38, para. 69), whereas the licence and the software meet the definition (IAS 38, para. 8). Accepting every item would amount to capitalising a reorganisation. Rule to remember: having no physical form does not turn every expenditure into an intangible asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000085","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.INTANGIBLE_ASSET","IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"ANALYSIS","context":"V1_QST.IAS38.000085","tested_point":"QST.IAS38.000085","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §8","IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"An analyst claims that a recipe database acquired by Gustavia is not identifiable, because Gustavia has no intention of reselling or licensing it. Where is the flaw in the reasoning?","es":""},"explanation":{"fr":"","en":"The definition of an intangible asset requires an identifiable asset (IAS 38, para. 8). An asset is separable, and therefore identifiable, if it could be sold, transferred, licensed, rented or exchanged, even if the entity does not intend to do so (IAS 38, para. 12). The lack of an intention to resell therefore does not prevent identifiability.","es":""},"common_error":{"fr":"","en":"Concluding that an asset is not separable because the entity does not plan to sell or license it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Separability is assessed on whether the asset could be sold, even without any intention to do so.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"There is no flaw: without an intention to sell, the asset is not separable.","es":""},"correct":false,"feedback":{"fr":"","en":"This reasoning makes separability depend on the entity's intention, whereas it is assessed on whether the asset could be sold, transferred, licensed, rented or exchanged, whether or not the entity intends to do so (IAS 38, para. 12). Gustavia's recipe database could be licensed: it is separable, hence identifiable. Rule to remember: having no intention to resell does not prevent separability.","es":""}},{"id":"C","text":{"fr":"","en":"The flaw is believing that an acquired database must be identifiable to meet the definition.","es":""},"correct":false,"feedback":{"fr":"","en":"Identifiability is indeed required by the definition of an intangible asset (IAS 38, para. 8): the analyst is not wrong on that point. The error concerns how separability is assessed, which rests on whether the database could be transferred and not on Gustavia's intention to do so (IAS 38, para. 12). Rule to remember: identifiability is required, and separability is judged on the possibility of transfer.","es":""}},{"id":"D","text":{"fr":"","en":"The flaw is considering that a database has no physical substance.","es":""},"correct":false,"feedback":{"fr":"","en":"Physical substance is not at issue here: a database has no physical form, which is consistent with the definition (IAS 38, para. 8). The analyst's error concerns the role of intention in separability, which is assessed on whether the asset could be transferred or licensed (IAS 38, para. 12). Rule to remember: do not confuse the absence of physical substance with separability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000086","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.FUTURE_BENEFITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000086","tested_point":"QST.IAS38.000086","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §17"],"exercise":{"prompt":{"fr":"","en":"True or false? The future economic benefits flowing from an intangible asset may take the form of cost savings, and not only of revenue from sales.","es":""},"explanation":{"fr":"","en":"True. The future economic benefits of an intangible asset may consist of revenue from the sale of products or services, cost savings or other benefits resulting from its use by the entity (IAS 38, para. 17). Approach: reread the possible forms of benefits before looking for sales. Trap: believing an asset is worth something only if it generates revenue. Rule to remember: future economic benefits include sales revenue, cost savings and other benefits from use (IAS 38, para. 17).","es":""},"common_error":{"fr":"","en":"Treating only sales revenue as future economic benefits.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000087","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.FUTURE_BENEFITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000087","tested_point":"QST.IAS38.000087","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §17"],"exercise":{"prompt":{"fr":"","en":"True or false? Software used only internally cannot provide future economic benefits, since it generates no revenue.","es":""},"explanation":{"fr":"","en":"False. Future economic benefits are not limited to revenue from sales: they may also take the form of cost savings or other benefits resulting from the use of the asset by the entity (IAS 38, para. 17). Internal software that reduces costs provides such benefits. Approach: identify how the software is used (internally), then look for the benefit it provides. Trap: concluding there is no benefit because no revenue is generated. Rule to remember: an asset used internally can provide cost savings, a form of future economic benefits (IAS 38, para. 17).","es":""},"common_error":{"fr":"","en":"Thinking that internally used software provides no benefit because it brings in no revenue.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000088","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.FUTURE_BENEFITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000088","tested_point":"QST.IAS38.000088","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §17"],"exercise":{"prompt":{"fr":"","en":"True or false? A process patent that allows the Ferval foundry to reduce its energy consumption provides future economic benefits, even though its selling prices remain unchanged.","es":""},"explanation":{"fr":"","en":"True. Using an intangible asset in a production process may provide benefits in the form of cost savings rather than increased revenue (IAS 38, para. 17). Ferval's lower energy consumption is an example. Approach: compare production costs before and after the patent, even if selling prices do not move. Trap: requiring a rise in sales to recognise a benefit. Rule to remember: Ferval's lower energy consumption is a cost saving, hence a future economic benefit (IAS 38, para. 17).","es":""},"common_error":{"fr":"","en":"Denying the patent any benefit because the foundry's selling prices stay the same.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000089","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.FUTURE_BENEFITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000089","tested_point":"QST.IAS38.000089","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §17"],"exercise":{"prompt":{"fr":"","en":"True or false? An intangible asset provides future economic benefits only if the entity plans to resell the asset itself to a third party.","es":""},"explanation":{"fr":"","en":"False. Future economic benefits may come from revenue from the sale of the products or services the asset helps provide, from cost savings or from other benefits resulting from its use by the entity (IAS 38, para. 17). Reselling the asset itself is not required. Approach: examine the possible forms of benefits, beyond the sale of the asset. Trap: confusing the benefit provided by use with proceeds from reselling the asset itself. Rule to remember: benefits can result from the entity's use of the asset, without any resale (IAS 38, para. 17).","es":""},"common_error":{"fr":"","en":"Believing an intangible asset has value only if it is resold to a third party.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000090","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.FUTURE_BENEFITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000090","tested_point":"QST.IAS38.000090","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §17"],"exercise":{"prompt":{"fr":"","en":"In what forms can the future economic benefits of an intangible asset arise?","es":""},"explanation":{"fr":"","en":"The future economic benefits of an intangible asset may include revenue from the sale of products or services, cost savings or other benefits resulting from its use by the entity (IAS 38, para. 17).","es":""},"common_error":{"fr":"","en":"Seeing future economic benefits only in cash received from sales.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only as revenue from the sale of goods manufactured using the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Sales revenue is one possible form of benefit, but this wording is too narrow: cost savings and other benefits from using the asset are included as well (IAS 38, para. 17). An entity that cuts its production costs thanks to a patented process gains a benefit without selling more. Rule to remember: future economic benefits are not limited to sales revenue.","es":""}},{"id":"B","text":{"fr":"","en":"Only as the price received on a future disposal of the asset itself.","es":""},"correct":false,"feedback":{"fr":"","en":"The price of a future sale may be a benefit, but many benefits result from the entity's use of the asset: cost savings or the sales revenue it makes possible (IAS 38, para. 17). A licence used for several years provides benefits without being resold. Rule to remember: using the asset is enough to provide future economic benefits.","es":""}},{"id":"C","text":{"fr":"","en":"Revenue from sales, cost savings or other benefits linked to its use.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Only as tax reductions granted in respect of the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Tax reductions are not among the forms of benefit mentioned: the standard refers to revenue from the sale of goods or services, cost savings and other benefits from use (IAS 38, para. 17). A licence that lowers an entity's processing costs provides a benefit unrelated to tax. Rule to remember: benefits are sales revenue, cost savings or other benefits from use.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000091","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.FUTURE_BENEFITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS38.000102","tested_point":"VG.IAS38.000102","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §17"],"exercise":{"prompt":{"fr":"","en":"The carrier Quimper Logistique acquires a licence for route optimisation software that will reduce its fuel consumption. Its customer rates remain unchanged. What form do the future economic benefits of this licence take?","es":""},"explanation":{"fr":"","en":"The future economic benefits of an intangible asset may take the form of cost savings resulting from its use, not only of revenue from sales (IAS 38, para. 17). The licence reduces fuel costs at unchanged rates: its benefits are cost savings.","es":""},"common_error":{"fr":"","en":"Looking for higher sales revenue when the asset reduces operating costs.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Additional revenue from the sale of its transport services.","es":""},"correct":false,"feedback":{"fr":"","en":"Customer prices stay the same, so the licence does not bring additional revenue from transport services. Quimper Logistique's benefit comes from lower fuel consumption, that is, a cost saving resulting from use of the licence (IAS 38, para. 17). Rule to remember: with unchanged prices, the benefit of an asset that reduces costs is a cost saving.","es":""}},{"id":"B","text":{"fr":"","en":"Cost savings.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No benefit, since revenue does not increase.","es":""},"correct":false,"feedback":{"fr":"","en":"Stable revenue does not mean there is no benefit: every litre of fuel saved reduces the carrier's costs, which is a form of future economic benefit (IAS 38, para. 17). The benefit exists even if sales revenue does not increase. Rule to remember: a cost reduction is a future economic benefit, even without a rise in revenue.","es":""}},{"id":"D","text":{"fr":"","en":"The proceeds the company will obtain from a later resale of the licence.","es":""},"correct":false,"feedback":{"fr":"","en":"The scenario provides for no resale of the licence: Quimper Logistique's benefit comes from using it to plan routes, which reduces fuel consumption (IAS 38, para. 17). The price of a possible sale is not the form of benefit at stake here. Rule to remember: the benefit is assessed from the asset's intended use, not from a hypothetical resale.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS38.000092","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.FUTURE_BENEFITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS38.000102","tested_point":"VG.IAS38.000102","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §17"],"exercise":{"prompt":{"fr":"","en":"The manufacturer Aquaflo acquires a patent that allows it to produce and market a new model of water filter. Its existing manufacturing costs are not affected. In what form does this patent provide it with future economic benefits?","es":""},"explanation":{"fr":"","en":"The future economic benefits of an intangible asset may take the form of revenue from the sale of products or services, cost savings or other benefits resulting from its use (IAS 38, para. 17). Here, the patent enables a new product to be sold without changing costs: its benefits are revenue from sales.","es":""},"common_error":{"fr":"","en":"Seeing cost savings where the scenario says manufacturing costs do not change.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Revenue from the sale of the new filters.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Savings on its existing manufacturing costs.","es":""},"correct":false,"feedback":{"fr":"","en":"The scenario states that Aquaflo's manufacturing costs are unchanged, so the patent does not provide cost savings. Its benefit lies in selling the new water filter model, that is, revenue from the sale of goods (IAS 38, para. 17). Rule to remember: read the facts of the case to identify the form of the benefit, here sales revenue.","es":""}},{"id":"C","text":{"fr":"","en":"No benefit until the patent itself is sold to a third party.","es":""},"correct":false,"feedback":{"fr":"","en":"The patent provides its benefits through use, here the manufacture and sale of the new filters: selling it to a third party is not necessary (IAS 38, para. 17). Aquaflo can sell its filters as soon as it makes them, without parting with the patent. Rule to remember: the entity's use of the asset is enough to provide future economic benefits.","es":""}},{"id":"D","text":{"fr":"","en":"A tax reduction linked to filing the patent.","es":""},"correct":false,"feedback":{"fr":"","en":"No tax reduction is mentioned in the scenario, and filing the patent is not the source of the benefit described: it comes from selling the new filters, revenue from the sale of goods (IAS 38, para. 17). Rule to remember: rely on the facts of the case, not on elements absent from the scenario, to determine the form of the benefit.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000093","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.FUTURE_BENEFITS","IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000093","tested_point":"QST.IAS38.000093","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"three-pillars"},"references":["IAS 38 §17","IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"Which statement about the future economic benefits of an intangible asset is correct?","es":""},"explanation":{"fr":"","en":"Future economic benefits may take the form of revenue from the sale of products or services, cost savings or other benefits resulting from the entity's use of the asset (IAS 38, para. 17). Whether the asset could be sold separately is a matter of identifiability, a distinct notion (IAS 38, para. 12).","es":""},"common_error":{"fr":"","en":"Confusing the separability of the asset with the existence of future economic benefits.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They must take the form of cash receipts from sales as early as the year of acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is too narrow: benefits are not limited to cash from sales, they may also be cost savings or other benefits from use (IAS 38, para. 17). A licence that lowers an entity's processing costs carries benefits without producing any sale. Rule to remember: future economic benefits are not the same as cash from sales in the year of acquisition.","es":""}},{"id":"B","text":{"fr":"","en":"They exist only if the asset could be sold separately from the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Separability is one aspect of identifiability, a notion distinct from future economic benefits (IAS 38, paras. 12 and 17). An asset the entity uses itself, without being able to transfer it separately, can provide cost savings. Rule to remember: do not confuse identifiability (separability or rights) with future economic benefits.","es":""}},{"id":"C","text":{"fr":"","en":"They may result from the entity's use of the asset, for example through reduced production costs.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"They are limited to revenue from rendering services.","es":""},"correct":false,"feedback":{"fr":"","en":"Limiting benefits to services is too narrow: the standard also cites revenue from the sale of goods, cost savings and other benefits from use (IAS 38, para. 17). A patent that allows an entity to make and sell a good provides revenue that is not from services. Rule to remember: revenue from the sale of goods is among the future economic benefits.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000094","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000094","tested_point":"QST.IAS38.000094","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000006","section_id":"defined-terms"},"references":["IAS 38 §8"],"exercise":{"prompt":{"fr":"","en":"True or false? Under IAS 38, research refers to original work, carried out according to a plan, whose aim is to obtain new scientific or technical insight and understanding.","es":""},"explanation":{"fr":"","en":"True. This wording reflects, in substance, how IAS 38 defines research (IAS 38, para. 8). It differs from development, which puts knowledge to work in a plan or design for new or substantially improved materials, devices, products, processes, systems or services, before any commercial production or use. Approach: spot the key words of research (original work, planned, new knowledge). Trap: confusing it with development, which applies knowledge to a plan or design. Rule to remember: research aims at new knowledge, development applies knowledge to a design (IAS 38, para. 8).","es":""},"common_error":{"fr":"","en":"Confusing research (new knowledge) with development (applying knowledge to a design).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000095","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000095","tested_point":"QST.IAS38.000095","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000006","section_id":"defined-terms"},"references":["IAS 38 §8"],"exercise":{"prompt":{"fr":"","en":"True or false? The depreciable amount of an intangible asset is equal to its cost, without taking its residual value into account.","es":""},"explanation":{"fr":"","en":"False. The depreciable amount is the cost of the asset, or another amount substituted for cost, less its residual value (IAS 38, para. 8). The residual value is therefore deducted. Approach: start from cost, deduct the residual value, obtain the depreciable amount. Trap: amortising the full cost without deducting the residual value. Rule to remember: amortisable amount = cost (or amount substituted for cost) − residual value (IAS 38, para. 8).","es":""},"common_error":{"fr":"","en":"Calculating the charge on the full cost without deducting the residual value.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000096","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000096","tested_point":"QST.IAS38.000096","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000006","section_id":"defined-terms"},"references":["IAS 38 §8"],"exercise":{"prompt":{"fr":"","en":"In IAS 38, which term refers to spreading the depreciable amount of an intangible asset methodically over its useful life?","es":""},"explanation":{"fr":"","en":"Amortisation means spreading the depreciable amount of an intangible asset methodically over its useful life (IAS 38, para. 8). The residual value, for its part, is deducted from cost to obtain the depreciable amount.","es":""},"common_error":{"fr":"","en":"Confusing residual value, which is deducted from cost, with amortisation, which spreads the amortisable amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Research.","es":""},"correct":false,"feedback":{"fr":"","en":"Research means original, planned work aimed at new knowledge: it is an activity, not a spreading of an amount over time. The term for the systematic allocation of the amortisable amount over the useful life is amortisation (IAS 38, para. 8). Rule to remember: research is an activity, amortisation is an allocation.","es":""}},{"id":"B","text":{"fr":"","en":"Development.","es":""},"correct":false,"feedback":{"fr":"","en":"Development applies knowledge to a plan or design, before production or commercial use: it names an activity, not the allocation of an amount over time. The systematic allocation of the amortisable amount over the useful life is called amortisation (IAS 38, para. 8). Rule to remember: development is a phase of activity, amortisation is an allocation.","es":""}},{"id":"C","text":{"fr":"","en":"Amortisation.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Residual value.","es":""},"correct":false,"feedback":{"fr":"","en":"Residual value is deducted from cost to obtain the amortisable amount: it is an amount, not the spreading itself. Amortisation is what then allocates that amount systematically over the useful life (IAS 38, para. 8). For example, a cost of 100 and a residual value of 10 give an amortisable amount of 90 to be spread. Rule to remember: residual value is deducted, amortisation spreads the resulting amount.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000097","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000097","tested_point":"QST.IAS38.000097","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000006","section_id":"defined-terms"},"references":["IAS 38 §8"],"exercise":{"prompt":{"fr":"","en":"The paint manufacturer Colorine applies the results of earlier work to design and test the prototype of a new anti-corrosion paint, before any commercial launch. Under IAS 38, this activity is:","es":""},"explanation":{"fr":"","en":"Development takes place before any commercial production or use begins: it puts research findings, or other knowledge, to work in a plan or design aimed at obtaining new or substantially improved materials, devices, products, processes, systems or services (IAS 38, para. 8). Colorine applies existing results to the design of a prototype, before any launch: this is development.","es":""},"common_error":{"fr":"","en":"Classifying the design of a prototype as research because the product does not exist yet.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"research, because it concerns a product that does not yet exist.","es":""},"correct":false,"feedback":{"fr":"","en":"Research aims at new knowledge; Colorine, by contrast, applies existing results to the design of a prototype, which corresponds to development (IAS 38, para. 8). The fact that the paint does not yet exist is not enough to call it research. Rule to remember: applying existing knowledge to a design is development, seeking new knowledge is research.","es":""}},{"id":"B","text":{"fr":"","en":"development.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"commercial production, because a prototype is manufactured.","es":""},"correct":false,"feedback":{"fr":"","en":"The prototype is designed and tested before any commercial launch: the activity precedes commercial production or use, which is the hallmark of development (IAS 38, para. 8). Making a test unit is not the same as producing for the market. Rule to remember: until commercial production or use has started, design work is development.","es":""}},{"id":"D","text":{"fr":"","en":"neither research nor development, because no new knowledge is gained.","es":""},"correct":false,"feedback":{"fr":"","en":"Development does not require acquiring new knowledge: it puts the results of research or other knowledge into a plan or design (IAS 38, para. 8). Colorine applies its earlier results to a prototype, so the activity does qualify: it is development. Rule to remember: the absence of new knowledge does not rule out development.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000098","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000098","tested_point":"QST.IAS38.000098","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000006","section_id":"defined-terms"},"references":["IAS 38 §8"],"exercise":{"prompt":{"fr":"","en":"The Heliade laboratory launches a planned programme of experiments to discover new properties of superconducting materials, with no specific product or process in view. How should this activity be described under IAS 38?","es":""},"explanation":{"fr":"","en":"Research covers original work, carried out according to a plan, whose aim is to obtain new scientific or technical insight (IAS 38, para. 8). Heliade's programme aims at new knowledge, without applying it to a plan or design for a product: it is research. Being planned is part of the definition of research itself.","es":""},"common_error":{"fr":"","en":"Classifying a programme of experiments as development because it is planned.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Development, because the programme is planned and structured.","es":""},"correct":false,"feedback":{"fr":"","en":"Being planned does not distinguish the two phases: research is also carried out according to a plan, a feature that is part of its definition (IAS 38, para. 8). What qualifies Héliade's programme is its aim: to discover new knowledge, with no application to a plan or product design. Rule to remember: the aim of the activity (new knowledge or application of knowledge) distinguishes research from development.","es":""}},{"id":"B","text":{"fr":"","en":"Development, because it might one day lead to new products.","es":""},"correct":false,"feedback":{"fr":"","en":"A possible outcome in new products later is not enough to call it development: development applies knowledge to a plan or design of products or processes (IAS 38, para. 8). Héliade is still exploring material properties, with no product or process identified. Rule to remember: development requires application to a plan or design, not merely the prospect of a product.","es":""}},{"id":"C","text":{"fr":"","en":"Research.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Neither, as there is no specific product.","es":""},"correct":false,"feedback":{"fr":"","en":"Research does not require an identified product: it consists of original, planned work to obtain new scientific or technical knowledge (IAS 38, para. 8). Having no product or process in view is, on the contrary, consistent with research. Rule to remember: without an identified product, an activity aimed at new knowledge remains research.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000099","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000099","tested_point":"QST.IAS38.000099","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000006","section_id":"defined-terms"},"references":["IAS 38 §8"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about the terms defined by IAS 38 are correct?","es":""},"explanation":{"fr":"","en":"Development puts research findings, or other knowledge, to work in a plan or design for new or substantially improved materials, devices, products, processes, systems or services, before any commercial production or use; research covers original work, carried out according to a plan, aimed at new knowledge; the depreciable amount is obtained by deducting the residual value from cost (or from the amount used in its place); amortisation spreads that amount methodically over the useful life (IAS 38, para. 8).","es":""},"common_error":{"fr":"","en":"Attributing to research the description of development (applying knowledge to a plan).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Development takes place before the start of commercial production or use.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Research consists of applying existing knowledge to a production plan.","es":""},"correct":false,"feedback":{"fr":"","en":"This description fits development, which applies knowledge to a plan or design, not research. Research consists of original, planned work aimed at new knowledge (IAS 38, para. 8). Rule to remember: research = new knowledge; development = application of knowledge to a design.","es":""}},{"id":"C","text":{"fr":"","en":"The depreciable amount is obtained by deducting the residual value from the asset's cost (or from the amount used in place of cost).","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Amortisation spreads the depreciable amount methodically over the useful life.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Development excludes any use of research findings.","es":""},"correct":false,"feedback":{"fr":"","en":"Development precisely puts the results of research, or other knowledge, into a plan or design (IAS 38, para. 8): it does not exclude them. A prototype designed from a prior study is an example. Rule to remember: development builds on research by applying its results or other knowledge.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000100","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000100","tested_point":"QST.IAS38.000100","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000006","section_id":"defined-terms"},"references":["IAS 38 §8"],"exercise":{"prompt":{"fr":"","en":"Velmor, a manufacturer of industrial pumps, carries out the following activities. Which ones are development under IAS 38?","es":""},"explanation":{"fr":"","en":"Development takes place before any commercial production or use begins: it puts research findings, or other knowledge, to work in a plan or design aimed at obtaining new or substantially improved materials, devices, products, processes, systems or services; research aims at new knowledge (IAS 38, para. 8). The improved prototype and the new process are development; the alloy experiments and the theoretical work are research; mass production comes after the commercial launch.","es":""},"common_error":{"fr":"","en":"Classifying theoretical or exploratory work as development because it is carried out by an industrial company.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Designing and testing a prototype of a substantially improved pump, before its commercial production.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Experiments to discover new properties of an alloy, with no specific application.","es":""},"correct":false,"feedback":{"fr":"","en":"These experiments target new properties of an alloy with no defined application: their aim is new knowledge, so this is research (IAS 38, para. 8). Development, by contrast, applies knowledge to a design, like Velmor's pump prototype. Rule to remember: without application to a plan or design, the activity is research.","es":""}},{"id":"C","text":{"fr":"","en":"Applying the results of a study to the design of a new assembly process, before its commercial use.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Mass production of a pump model already on the market.","es":""},"correct":false,"feedback":{"fr":"","en":"Series production of a model already on the market takes place after the commercial launch, whereas development comes before any start of commercial production or use (IAS 38, para. 8). It is therefore ordinary production, not development. Rule to remember: development precedes commercial production or use.","es":""}},{"id":"E","text":{"fr":"","en":"Work aimed at deepening the theoretical understanding of fluid flows.","es":""},"correct":false,"feedback":{"fr":"","en":"Deepening the theoretical understanding of fluid flows aims at new scientific or technical knowledge, which characterises research (IAS 38, para. 8). Development concerns applying knowledge to a design, like Velmor's prototype or new process. Rule to remember: theoretical work aimed at new knowledge is research.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000101","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000101","tested_point":"QST.IAS38.000101","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"True or false? An operating authorisation granted by a public authority, which the law prohibits from being transferred to a third party, can nevertheless meet the identifiability condition.","es":""},"explanation":{"fr":"","en":"True. An asset is identifiable if it is separable or if it arises from contractual or legal rights, whether or not those rights are transferable or separable from the entity (IAS 38, para. 12). The authorisation rests on a legal right: the fact that it cannot be transferred does not prevent identifiability. Approach: check the two routes to identifiability, separability or a contractual or legal right. Trap: requiring transferability for an item arising from a legal right. Rule to remember: an item arising from legal or contractual rights is identifiable even if those rights are neither transferable nor separable (IAS 38, para. 12).","es":""},"common_error":{"fr":"","en":"Denying identifiability of an operating permit because it cannot be transferred.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000102","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000102","tested_point":"QST.IAS38.000102","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"True or false? A data file that the entity could rent out to third parties ceases to be separable as soon as management decides never to rent it out or sell it.","es":""},"explanation":{"fr":"","en":"False. Separability is assessed by reference to whether the item could be sold, transferred, licensed, rented or exchanged, regardless of whether the entity intends to do so (IAS 38, para. 12). Management's decision to keep the file does not change its separable nature. Approach: ask whether the file could be sold, licensed or rented, not whether management wants to do so. Trap: making separability depend on a management decision. Rule to remember: separability is assessed on the possibility of transfer, whether or not the entity intends to do so (IAS 38, para. 12).","es":""},"common_error":{"fr":"","en":"Considering that an item stops being separable as soon as management decides to keep it.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000103","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000103","tested_point":"QST.IAS38.000103","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"Velorin holds a regional transport licence issued by the State for ten years. Regulations prohibit any transfer of this licence. On what basis is the licence identifiable?","es":""},"explanation":{"fr":"","en":"Identifiability is met either by separability or by the existence of contractual or legal rights, and those rights need not be transferable or separable (IAS 38, para. 12). Velorin's licence arises from a legal right: it is identifiable despite the prohibition on transfer.","es":""},"common_error":{"fr":"","en":"Requiring both separability and a legal right, when either route is enough.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is not identifiable, because it cannot be transferred to anyone.","es":""},"correct":false,"feedback":{"fr":"","en":"A legal right is enough to make an item identifiable, even if that right cannot be transferred: the lack of transferability is therefore no obstacle (IAS 38, para. 12). Velorin's transport licence arises from a right granted by the State, which meets this criterion. Rule to remember: an item arising from a legal right is identifiable even if it cannot be transferred.","es":""}},{"id":"B","text":{"fr":"","en":"It is identifiable, because it arises from a legal right, even a non-transferable one.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is identifiable only if Velorin plans to sell it one day.","es":""},"correct":false,"feedback":{"fr":"","en":"The intention to resell plays no part in either route to identifiability: separability is judged on the possibility of transfer, and the second route rests on a contractual or legal right (IAS 38, para. 12). Velorin's licence is identifiable through its legal origin, whether or not the company considers reselling it. Rule to remember: the entity's intention is irrelevant to identifiability.","es":""}},{"id":"D","text":{"fr":"","en":"It is identifiable only if it is both transferable and arises from a legal right.","es":""},"correct":false,"feedback":{"fr":"","en":"The two routes are alternatives: an item is identifiable if it is separable or if it arises from contractual or legal rights (IAS 38, para. 12). Requiring both transferability and a legal right would wrongly rule out Velorin's licence, which cannot be transferred but arises from a legal right. Rule to remember: one route is enough to establish identifiability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000104","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000104","tested_point":"QST.IAS38.000104","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"Datalys has built a database of contact details of healthcare professionals. No legal right protects this database, but comparable databases are commonly rented to laboratories. Datalys has never rented out its own and does not plan to do so. Is the database identifiable?","es":""},"explanation":{"fr":"","en":"An item is separable if it could be sold, transferred, licensed, rented or exchanged, even if the entity does not intend to do so; separability alone is enough for identifiability, without any contractual or legal right (IAS 38, para. 12). The Datalys database could be rented out: it is identifiable.","es":""},"common_error":{"fr":"","en":"Making separability depend on a rental already made or on the entity's intention.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, because it could be rented to third parties: it is separable.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No, because no contractual or legal right protects it.","es":""},"correct":false,"feedback":{"fr":"","en":"Contractual or legal rights are one of the two routes to identifiability; separability is the other (IAS 38, para. 12). Comparable databases are commonly rented to laboratories: Datalys's could be too, even with no right protecting it. Rule to remember: identifiability can result from separability, without any contractual or legal right.","es":""}},{"id":"C","text":{"fr":"","en":"No, because Datalys does not intend to rent it out.","es":""},"correct":false,"feedback":{"fr":"","en":"Datalys's intention not to rent out its database is irrelevant: separability is assessed on whether it could be rented, whether or not the entity intends to do so (IAS 38, para. 12). Since comparable databases are rented in the market, its own is separable, hence identifiable. Rule to remember: the entity's intention does not change separability.","es":""}},{"id":"D","text":{"fr":"","en":"Yes, but only from the first actual rental to a laboratory.","es":""},"correct":false,"feedback":{"fr":"","en":"Separability rests on the possibility of renting or transferring, not on a rental that has already taken place: waiting for a first rental is not a condition (IAS 38, para. 12). Datalys's database is identifiable now, because it could be rented like comparable databases. Rule to remember: the possibility of transfer is enough, an actual transfer is not required.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000105","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.IDENTIFIABILITY","IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000105","tested_point":"QST.IAS38.000105","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §12","IAS 38 §48","IAS 38 §49"],"exercise":{"prompt":{"fr":"","en":"Which of the following items held by the Ostrel group does not meet the identifiability condition?","es":""},"explanation":{"fr":"","en":"An item is identifiable if it is separable or if it arises from contractual or legal rights (IAS 38, para. 12). The frequency usage right rests on a legal right; the file and the source code could be rented or licensed. General reputation, which forms part of internally generated goodwill, is not an identifiable resource (IAS 38, paras. 48 and 49).","es":""},"common_error":{"fr":"","en":"Treating general reputation as identifiable because it has value for the group.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A non-transferable right to use radio frequencies granted by the State.","es":""},"correct":false,"feedback":{"fr":"","en":"This right to use radio frequencies arises from a legal right: it is identifiable even if it is not transferable (IAS 38, para. 12). The item that fails the condition is the group's general reputation, which belongs to internally generated goodwill (IAS 38, paras. 48 and 49). Rule to remember: a non-transferable legal right remains identifiable, general reputation does not.","es":""}},{"id":"B","text":{"fr":"","en":"A subscriber file that could be rented to advertisers, with no intention of doing so.","es":""},"correct":false,"feedback":{"fr":"","en":"The subscriber file could be rented to advertisers: it is separable, hence identifiable, even if the group has no intention of doing so (IAS 38, para. 12). The item that is not identifiable is general reputation, a component of internally generated goodwill (IAS 38, para. 49). Rule to remember: an intention not to rent out does not remove the identifiability of a separable item.","es":""}},{"id":"C","text":{"fr":"","en":"The general reputation built up by the group over the years.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The source code of software that the group could license to third parties.","es":""},"correct":false,"feedback":{"fr":"","en":"The source code could be licensed to third parties: it is separable, hence identifiable (IAS 38, para. 12). General reputation, by contrast, is neither separable nor derived from contractual or legal rights, and is not an identifiable resource (IAS 38, para. 49). Rule to remember: an item that can be licensed is separable, hence identifiable.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000106","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000106","tested_point":"QST.IAS38.000106","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"Which of the following items of Rivand are identifiable?","es":""},"explanation":{"fr":"","en":"An item is identifiable if it is separable, meaning it could be sold, transferred, licensed, rented or exchanged even without any intention to do so, or if it arises from contractual or legal rights, even non-transferable ones (IAS 38, para. 12). The contractual right (B) and the registered trademark (D) rest on rights; the catalogue (C) could be licensed. The image with the public (A) is neither separable nor protected by a right.","es":""},"common_error":{"fr":"","en":"Denying identifiability of a contractual right because the contract prohibits transferring it.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Rivand's favourable image with the public, inseparable from the business and protected by no right.","es":""},"correct":false,"feedback":{"fr":"","en":"Rivand's favourable public image cannot be detached from the business to be transferred or rented, and no right protects it: it meets neither route to identifiability (IAS 38, para. 12). A good reputation has value, but commercial value and identifiability are distinct notions. Rule to remember: an item is identifiable if it is separable or arises from contractual or legal rights.","es":""}},{"id":"B","text":{"fr":"","en":"A contractual right to use a process patented by a third party, which the contract prohibits from being transferred.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A catalogue of unprotected graphic templates that Rivand could license to other studios.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A registered trademark that Rivand has no intention of selling.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000107","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000107","tested_point":"QST.IAS38.000107","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about the identifiability of an intangible asset are correct?","es":""},"explanation":{"fr":"","en":"Identifiability is met through either of two routes: separability (the item could be sold, transferred, licensed, rented or exchanged, even without any intention to do so) or the existence of contractual or legal rights, even non-transferable ones (IAS 38, para. 12). Statements A, C and E are therefore correct; B wrongly requires both conditions and D makes separability depend on a decision by the entity.","es":""},"common_error":{"fr":"","en":"Requiring both separability and a contract, or making separability depend on a decision to transfer.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An item arising from a legal right is identifiable even if that right cannot be transferred.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An item is identifiable only if it is both separable and protected by a contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The two routes to identifiability are alternatives: an item is identifiable if it is separable or if it arises from contractual or legal rights (IAS 38, para. 12). Requiring both separability and a contract would wrongly rule out a non-transferable contractual right. Rule to remember: one route is enough to establish identifiability.","es":""}},{"id":"C","text":{"fr":"","en":"An item that could be rented to a third party is separable.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Separability requires the entity to have decided to dispose of the item.","es":""},"correct":false,"feedback":{"fr":"","en":"Separability does not presuppose any decision to transfer: an item is separable if it could be sold, transferred, licensed, rented or exchanged, whether or not the entity intends to do so (IAS 38, para. 12). A file an entity decides to keep remains separable if it could be rented. Rule to remember: separability is assessed on possibility, not on the entity's decision.","es":""}},{"id":"E","text":{"fr":"","en":"An item that could be exchanged for another asset is separable, even if the entity wishes to keep it.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000108","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000108","tested_point":"QST.IAS38.000108","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"Norvane signs a contract with a foreign manufacturer for the exclusive distribution of its products in three countries for five years, in return for an upfront fee. The contract expressly prohibits Norvane from transferring this right to another entity, and no market would allow it to be sold. The financial controller concludes that the right is not identifiable. What should be concluded?","es":""},"explanation":{"fr":"","en":"An asset is identifiable if it is separable or if it arises from contractual or legal rights, whether or not those rights are transferable or separable from the entity (IAS 38, para. 12). Norvane's exclusive distribution right arises from a contract: it is identifiable, even though it cannot be transferred.","es":""},"common_error":{"fr":"","en":"Concluding that a non-transferable contractual right is not identifiable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He is right: a non-transferable right is never separable, and therefore never identifiable.","es":""},"correct":false,"feedback":{"fr":"","en":"The financial controller confuses separability with identifiability: an item that is not separable can still be identifiable if it arises from contractual or legal rights (IAS 38, para. 12). Norvane's exclusive distribution right comes from a contract. Rule to remember: non-separability does not prevent a contractual right from being identifiable.","es":""}},{"id":"B","text":{"fr":"","en":"He is right, because the right becomes identifiable only when the five-year period ends.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing ties identifiability to the contract's expiry: Norvane's right is identifiable from signature because it arises from a contract (IAS 38, para. 12). Waiting five years has no support in the routes to identifiability. Rule to remember: identifiability is assessed on the origin or separability of the item, not on the contract's timetable.","es":""}},{"id":"C","text":{"fr":"","en":"He is wrong, but only because Norvane could renegotiate the non-transfer clause.","es":""},"correct":false,"feedback":{"fr":"","en":"No renegotiation of the non-transfer clause is needed: the contractual right is identifiable as it stands, even if it is neither transferable nor separable (IAS 38, para. 12). Norvane's exclusivity contract is enough. Rule to remember: do not make the identifiability of a contractual right conditional on its transferability.","es":""}},{"id":"D","text":{"fr":"","en":"He is wrong: the right arises from a contract, which is enough to make it identifiable.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000109","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000109","tested_point":"QST.IAS38.000109","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"Fermelis has mastered a fermentation process that it has not patented. In its industry, manufacturers commonly license comparable processes to other producers. Fermelis has never granted a licence and its management wants to keep the process to itself. For the identifiability analysis only, what conclusion should be drawn?","es":""},"explanation":{"fr":"","en":"Separability is enough to make an item identifiable: it only needs to be capable of being sold, transferred, licensed, rented or exchanged, even if the entity does not intend to do so (IAS 38, para. 12). Comparable processes are commonly licensed: the Fermelis process is separable, and therefore identifiable, without a patent. The other elements of the definition, such as control, are analysed separately.","es":""},"common_error":{"fr":"","en":"Requiring a patent or an actual licence for a process to be identifiable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The process is not identifiable, since there is no patent or other legal right.","es":""},"correct":false,"feedback":{"fr":"","en":"A legal right is one of the two routes to identifiability; separability is another (IAS 38, para. 12). Comparable processes are commonly licensed: Fermelis's could be, without a patent. This conclusion concerns identifiability; control and the other recognition conditions remain to be analysed separately. Rule to remember: the absence of a patent does not rule out the identifiability of a separable process.","es":""}},{"id":"B","text":{"fr":"","en":"The process is identifiable, because it could be licensed to third parties.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The process is not identifiable, because management refuses to grant any licence.","es":""},"correct":false,"feedback":{"fr":"","en":"Management's refusal is a matter of intention, which has no effect on separability: an item is separable if it could be licensed, whether or not the entity wants to (IAS 38, para. 12). Since comparable processes are commonly licensed, Fermelis's can be too. Rule to remember: wanting to keep a process for oneself does not remove its separability.","es":""}},{"id":"D","text":{"fr":"","en":"The process is identifiable only once a patent has been filed and a licence signed.","es":""},"correct":false,"feedback":{"fr":"","en":"A patent and a licence are not cumulative conditions of identifiability: an item is identifiable if it is separable or arises from contractual or legal rights (IAS 38, para. 12). Fermelis does not have to file a patent or sign a licence for the process to be identifiable. Rule to remember: do not add formalities to the definition of identifiability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000110","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.IDENTIFIABILITY","IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000110","tested_point":"QST.IAS38.000110","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §12","IAS 38 §63"],"exercise":{"prompt":{"fr":"","en":"Over the years, Mirabel has built its own customer list, which it could rent to business partners, as is common practice in its industry. The finance director argues that, since the list is identifiable, it must be recognised as an intangible asset. What conclusion should be drawn?","es":""},"explanation":{"fr":"","en":"The list could be rented out: it is separable, and therefore identifiable, even though Mirabel has never rented it (IAS 38, para. 12). Identifiability is not sufficient for recognition, however: internally generated customer lists are not recognised as intangible assets (IAS 38, para. 63).","es":""},"common_error":{"fr":"","en":"Concluding that an identifiable item is necessarily recognisable, ignoring its internal origin.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The list is not identifiable, because Mirabel has never rented it out.","es":""},"correct":false,"feedback":{"fr":"","en":"Separability rests on the possibility of renting the list, not on a rental already made: Mirabel's list is identifiable (IAS 38, para. 12). The difficulty lies elsewhere: an internally generated customer list is not recognised as an intangible asset (IAS 38, para. 63). Rule to remember: identifiability is assessed on the possibility of transfer, and does not by itself settle recognition.","es":""}},{"id":"B","text":{"fr":"","en":"The list is identifiable and must be recognised, because it could be rented out.","es":""},"correct":false,"feedback":{"fr":"","en":"Identifiability is necessary but does not suffice for recognition: Mirabel built the list itself, and internally generated customer lists are not recognised as intangible assets (IAS 38, para. 63). No asset is therefore presented on that account in its financial statements. Rule to remember: an identifiable item can still be excluded from recognition.","es":""}},{"id":"C","text":{"fr":"","en":"The list is identifiable, but an internally generated customer list is not recognised as an intangible asset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The list is identifiable only if a contract protects the data it contains.","es":""},"correct":false,"feedback":{"fr":"","en":"A contract is not required: separability is enough for identifiability (IAS 38, para. 12), and Mirabel's list could be rented. The conclusion remains, however, that it is not recognised, because an internally generated customer list is not recognised as an intangible asset (IAS 38, para. 63). Rule to remember: the identifiability of an item and its recognition are two distinct questions.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000112","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000112","tested_point":"QST.IAS38.000112","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §13","IAS 38 §16"],"exercise":{"prompt":{"fr":"","en":"For an entity to control an intangible resource within the meaning of IAS 38, what must it primarily demonstrate?","es":""},"explanation":{"fr":"","en":"Control is defined as the power to obtain the future economic benefits of the resource and to restrict the access of others to those benefits (IAS 38, para. 13). Legal rights are a common means of control, but not the only one: IAS 38 accepts for example that exchange transactions for non-contractual customer relationships provide evidence of control (IAS 38, para. 16).","es":""},"common_error":{"fr":"","en":"Confusing control with mere use of the resource or payment of a price to obtain it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"That it paid a price to obtain the resource.","es":""},"correct":false,"feedback":{"fr":"","en":"Paying a price does not establish control: control means having the power to obtain the future economic benefits of the resource and to restrict others' access to them (IAS 38, para. 13). A buyer can pay for a resource that others remain free to use. Rule to remember: control is shown by power over the benefits and over third-party access, not by payment of a price.","es":""}},{"id":"B","text":{"fr":"","en":"That it uses the resource daily in its operations.","es":""},"correct":false,"feedback":{"fr":"","en":"Using a resource every day does not give the power to restrict others' access to it, which is one of the two limbs of control (IAS 38, para. 13). An entity that uses a database open to everyone daily does not thereby control it. Rule to remember: use is not control; the entity must also be able to exclude third parties.","es":""}},{"id":"C","text":{"fr":"","en":"That it has the power to obtain the future benefits of the resource and to restrict the access of others to them.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"That it holds legal title, the only way to establish control.","es":""},"correct":false,"feedback":{"fr":"","en":"Legal title is a common way of establishing control, but legal enforceability is not a necessary condition: control can be shown by other means (IAS 38, para. 13). IAS 38 accepts, for example, exchange transactions for non-contractual customer relationships (IAS 38, para. 16). Rule to remember: legal rights are a common way to demonstrate control, but other means can establish it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000113","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000113","tested_point":"QST.IAS38.000113","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §15","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"Quorvel funds a six-month certification course for its maintenance technicians. The technicians remain free to resign at any time. Management believes that the skills acquired will generate lasting productivity gains. How should the cost of this training be accounted for?","es":""},"explanation":{"fr":"","en":"Skills arising from training do not usually give the entity sufficient control over the future benefits to meet the definition of an intangible asset (IAS 38, para. 15); the technicians can leave at any time. Training expenditure is moreover among the items recognised as an expense (IAS 38, para. 69).","es":""},"common_error":{"fr":"","en":"Capitalising a training cost on the grounds that productivity gains are probable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an intangible asset, because the productivity gains are probable.","es":""},"correct":false,"feedback":{"fr":"","en":"The probability of productivity gains is not enough: the resource must also meet the definition, in particular as regards control. Skills acquired through training generally do not give sufficient control (IAS 38, para. 15), and Quorvel's technicians remain free to resign; training is also among the expenditure recognised as an expense (IAS 38, para. 69). Rule to remember: probable benefits without control do not make an asset.","es":""}},{"id":"B","text":{"fr":"","en":"As an expense, because Quorvel does not have sufficient control over the skills acquired by its staff.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As an intangible asset amortised over the average length of service of the technicians trained in the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"An average length of service is not a right over the skills: it creates no control, so there is no asset to amortise (IAS 38, para. 15). Amortising presupposes an asset has been recognised, whereas training is expenditure recognised as an expense (IAS 38, para. 69). Rule to remember: without control there is no intangible asset, hence no amortisation.","es":""}},{"id":"D","text":{"fr":"","en":"As an expense only for the share of technicians who will leave the entity within the year.","es":""},"correct":false,"feedback":{"fr":"","en":"No split is provided for: training the technicians does not generally give sufficient control, whether they leave or stay (IAS 38, para. 15). The whole cost is therefore recognised as an expense (IAS 38, para. 69). Rule to remember: the cost of training is not apportioned according to departures, it is recognised as an expense.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000114","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000114","tested_point":"QST.IAS38.000114","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §15","IAS 38 §13"],"exercise":{"prompt":{"fr":"","en":"Halvion employs an engineer whose expertise in acoustics is recognised across the industry. In which situation could this technical expertise meet the definition of an intangible asset?","es":""},"explanation":{"fr":"","en":"Technical or managerial talent meets the definition of an intangible asset only if it is protected by legal rights to use it and to obtain the benefits from it (IAS 38, para. 15). Without this protection, Halvion does not have the power to obtain the benefits of the expertise and to restrict the access of others to them (IAS 38, para. 13).","es":""},"common_error":{"fr":"","en":"Considering that a scarce expertise, or one funded by the employer, is controlled without any legal right.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As soon as the expertise is rare on the labour market.","es":""},"correct":false,"feedback":{"fr":"","en":"The scarcity of an expertise on the labour market does not give the employer control over it: technical talent meets the definition only if it is protected by legal rights (IAS 38, para. 15). Halvion cannot stop the engineer from leaving, despite the value of her expertise. Rule to remember: the value or scarcity of a talent does not replace control.","es":""}},{"id":"B","text":{"fr":"","en":"As soon as the engineer has worked for Halvion for more than ten years and has trained the whole acoustics team.","es":""},"correct":false,"feedback":{"fr":"","en":"The engineer's length of service and her role in training the team are not a legal right over her expertise (IAS 38, para. 15). Halvion can neither restrict third-party access to this expertise nor prevent her departure (IAS 38, para. 13). Rule to remember: length of service is not legal protection.","es":""}},{"id":"C","text":{"fr":"","en":"As soon as Halvion has funded a large part of her training.","es":""},"correct":false,"feedback":{"fr":"","en":"Funding training does not give control over the skills acquired (IAS 38, para. 15): the expertise remains the engineer's as long as no legal right protects it. In the financial statements, no asset is therefore presented for this expertise. Rule to remember: paying for training does not give control over skills.","es":""}},{"id":"D","text":{"fr":"","en":"Only if legal rights protect the use of this expertise and the benefits arising from it.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000115","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000115","tested_point":"QST.IAS38.000115","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §16"],"exercise":{"prompt":{"fr":"","en":"Lunacor has regular business relationships with customers who are not bound by any contract. Which of the following can demonstrate that Lunacor controls these customer relationships?","es":""},"explanation":{"fr":"","en":"In the absence of legal rights or other ways to control the relationship or the loyalty of customers, the entity usually has insufficient control; however, exchange transactions for the same or similar non-contractual customer relationships provide evidence that the entity can control the expected benefits from those relationships (IAS 38, para. 16).","es":""},"common_error":{"fr":"","en":"Seeing in loyalty or advertising spend the proof of control over customer relationships.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A customer loyalty rate higher than that of its competitors.","es":""},"correct":false,"feedback":{"fr":"","en":"A customer loyalty rate above competitors' does not give Lunacor the power to stop customers leaving: without legal rights or other means of controlling loyalty, control is generally not sufficient (IAS 38, para. 16). Rule to remember: observed loyalty does not establish control; exchange transactions for similar relationships prove it.","es":""}},{"id":"B","text":{"fr":"","en":"The existence of exchange transactions for the same or similar non-contractual customer relationships.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The high advertising expenditure incurred to attract these customers.","es":""},"correct":false,"feedback":{"fr":"","en":"The amount spent to attract customers measures an effort, not power over the customer relationship: it does not demonstrate control (IAS 38, para. 16). However much Lunacor spends, customers remain free to leave. Rule to remember: a high cost is not an indicator of control.","es":""}},{"id":"D","text":{"fr":"","en":"A satisfaction survey showing that customers intend to remain loyal.","es":""},"correct":false,"feedback":{"fr":"","en":"A survey showing customers' intention to stay loyal does not bind them: they remain free to leave, so Lunacor has no power over these benefits (IAS 38, para. 16). A stated intention is neither a legal right nor an exchange transaction. Rule to remember: customers' stated intention does not replace a right or an exchange transaction.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000116","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000116","tested_point":"QST.IAS38.000116","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §15","IAS 38 §16"],"exercise":{"prompt":{"fr":"","en":"Under IAS 38, which of the following resources do not usually give the entity sufficient control to meet the definition of an intangible asset?","es":""},"explanation":{"fr":"","en":"A team of skilled staff and the skills arising from training do not usually give sufficient control over the future benefits (IAS 38, para. 15). The same applies to customer relationships without legal rights or other means of control, in the absence of exchange transactions for similar relationships (IAS 38, para. 16). The patent and the exclusive contractual right, by contrast, rest on legal rights.","es":""},"common_error":{"fr":"","en":"Thinking that any intangible resource useful to the entity, including a skilled team, is controlled by it.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A team of skilled staff.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A patent registered in the entity's name.","es":""},"correct":false,"feedback":{"fr":"","en":"A patent filed in the entity's name confers legal rights; yet legal protection is precisely what skills and teams lack (IAS 38, para. 15). The patent lets the entity restrict third-party access, so it is not among the resources that do not generally give sufficient control. Rule to remember: legal protection is a common means of controlling a resource.","es":""}},{"id":"C","text":{"fr":"","en":"The skills acquired by employees during training.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Relationships with customers not bound by contract, in the absence of similar exchange transactions.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"An exclusive operating right obtained by contract.","es":""},"correct":false,"feedback":{"fr":"","en":"An exclusive right of use obtained by contract is a right that lets the entity exclude third parties: it gives control, unlike unprotected skills or customer relationships (IAS 38, paras. 15 and 16). It is therefore not among the resources lacking control. Rule to remember: an exclusive contractual right is a means of control; an unprotected team or customer base does not generally provide it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000117","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000117","tested_point":"QST.IAS38.000117","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §13","IAS 38 §15","IAS 38 §16","IAS 38 §14"],"exercise":{"prompt":{"fr":"","en":"The Tessaly group is analysing several intangible resources. Which of the following items constitute evidence of control over the resource concerned?","es":""},"explanation":{"fr":"","en":"Control requires the power to obtain the future benefits and to restrict the access of others to them (IAS 38, para. 13): the patent (B) provides this power. Technical knowledge, such as a manufacturing formula, is controlled when it is protected, for example by legally enforceable agreements (D) or a legal duty of confidentiality (IAS 38, para. 14). Exchange transactions for similar non-contractual customer relationships provide evidence of control over those relationships (IAS 38, para. 16). By contrast, staff training does not usually give sufficient control (IAS 38, para. 15) and reputation gives no power of exclusion.","es":""},"common_error":{"fr":"","en":"Treating brand awareness or the cost of training as proof of control over a resource.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The strong reputation of the product range among consumers.","es":""},"correct":false,"feedback":{"fr":"","en":"A product range's brand awareness among consumers does not give the power to stop them turning to other products: without legal rights or other means of controlling customer loyalty, control is generally not sufficient (IAS 38, para. 16). Brand awareness is therefore not presented as an intangible asset of the group. Rule to remember: brand awareness is not evidence of control.","es":""}},{"id":"B","text":{"fr":"","en":"A patent that prohibits any competitor from exploiting the invention.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The high cost of the training programme followed by the sales team.","es":""},"correct":false,"feedback":{"fr":"","en":"The high cost of a training programme measures the effort made, not control: skills acquired through training generally do not give sufficient control over future benefits (IAS 38, para. 15). The sales team can leave with its skills. Rule to remember: the amount spent is not evidence of control.","es":""}},{"id":"D","text":{"fr":"","en":"Legally enforceable agreements that prevent any third party from using a manufacturing formula.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Recent sales, between industry players, of portfolios of similar non-contractual customer relationships.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000118","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000118","tested_point":"QST.IAS38.000118","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §16","IAS 38 §13"],"exercise":{"prompt":{"fr":"","en":"Brenhal, a distributor of industrial supplies, separately acquires from a competitor leaving the market a portfolio of relationships with regular customers who are not bound by contract. In this industry, portfolios of this kind frequently change hands between distributors. The management controller considers that, without a contract, Brenhal cannot control these relationships. What conclusion should be drawn on control?","es":""},"explanation":{"fr":"","en":"Without legal rights, the entity usually has insufficient control over customer relationships; however, exchange transactions for the same or similar non-contractual customer relationships provide evidence that the entity can control the expected benefits (IAS 38, para. 16). The frequent sales of similar portfolios in the industry, including this acquisition, provide that evidence of Brenhal's power over these benefits (IAS 38, para. 13).","es":""},"common_error":{"fr":"","en":"Concluding there is no control over customer relationships as soon as no contract exists.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Control is lacking, because no customer is bound by a contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The lack of a contract is not decisive: exchange transactions for identical or similar non-contractual customer relationships prove control (IAS 38, para. 16). In Brenhal's sector, such portfolios change hands frequently. Rule to remember: without a contract, control can be shown by exchange transactions for similar relationships.","es":""}},{"id":"B","text":{"fr":"","en":"The exchange transactions observed for similar relationships demonstrate that Brenhal can control the expected benefits from these relationships.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Control will exist only after a first year of actual orders from the customers taken over.","es":""},"correct":false,"feedback":{"fr":"","en":"Control does not depend on an order history after the acquisition: it is demonstrated by the existence of exchange transactions for similar customer relationships (IAS 38, para. 16), which Brenhal's sector already shows. Waiting a year is not a condition set by these paragraphs (IAS 38, paras. 13 and 16). Rule to remember: control is assessed on the power to obtain the benefits, not on an order history.","es":""}},{"id":"D","text":{"fr":"","en":"Control arises solely from the fact that Brenhal paid a price to the competitor.","es":""},"correct":false,"feedback":{"fr":"","en":"It is not the payment itself that establishes control, but the existence of exchange transactions for similar relationships, evidence that Brenhal can control the expected benefits (IAS 38, para. 16). A price paid without that evidence would not give the power to restrict third-party access (IAS 38, para. 13). Rule to remember: payment does not establish control; similar exchange transactions demonstrate it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000119","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000119","tested_point":"QST.IAS38.000119","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §15"],"exercise":{"prompt":{"fr":"","en":"Sylvex has recruited and trained a team of forty data analytics specialists, whose reputation attracts new customers. The employment contracts allow each specialist to resign with one month's notice and contain no other clause. The chief executive wishes to recognise the value of this team as an intangible asset. What should the answer be?","es":""},"explanation":{"fr":"","en":"A team of skilled staff does not usually give the entity sufficient control over the future economic benefits to meet the definition of an intangible asset (IAS 38, para. 15). The specialists can leave Sylvex with simple notice and no legal right protects their talent: the team is not recognised as an asset.","es":""},"common_error":{"fr":"","en":"Wanting to recognise the value of a skilled team as an asset because it attracts customers.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The team does not meet the definition, because Sylvex does not have sufficient control over the benefits it provides.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The team can be recognised, because its reputation attracts new customers.","es":""},"correct":false,"feedback":{"fr":"","en":"The team's reputation attracts customers, but it does not give Sylvex control over its members: a team of skilled staff generally does not give sufficient control over future benefits (IAS 38, para. 15). The specialists can resign on one month's notice. Rule to remember: a team's commercial appeal is not control.","es":""}},{"id":"C","text":{"fr":"","en":"The team can be recognised for one month of salaries, the contractual notice period.","es":""},"correct":false,"feedback":{"fr":"","en":"A one-month notice period is not legal protection of the talent: it does not let Sylvex retain the specialists or restrict access to them (IAS 38, para. 15). There is therefore no asset to recognise for one month's salaries. Rule to remember: an employment contract's notice period does not establish control over skills.","es":""}},{"id":"D","text":{"fr":"","en":"The team can be recognised as soon as a reliable valuation of it is obtained from an independent expert.","es":""},"correct":false,"feedback":{"fr":"","en":"A reliable valuation of the team answers a separate question and does not cure the lack of control required by the definition: the team can leave Sylvex and no legal right protects its talent (IAS 38, para. 15). The chief executive therefore cannot recognise this value as an asset. Rule to remember: an expert can value a resource, but cannot create control.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000120","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000120","tested_point":"QST.IAS38.000120","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §13"],"exercise":{"prompt":{"fr":"","en":"Clarvia takes out a three-year subscription to sales management software as a service. The software is hosted on the supplier's servers; the supplier updates it at its sole discretion and makes it available to many other customers. Clarvia accesses it over the internet, without being able to take possession of it or install it on its own servers. Before analysing the configuration costs of the software, Clarvia considers whether it controls the software itself. What conclusion should be drawn?","es":""},"explanation":{"fr":"","en":"Control of a resource requires the power to obtain its future economic benefits and to restrict the access of others to them (IAS 38, para. 13). Here, the supplier hosts the software, changes it at its sole discretion and makes it available to other customers; Clarvia can neither take possession of it nor restrict access to it. It only has a right to access the service and does not control the software itself. This conclusion is consistent with the 2019 IFRS Interpretations Committee agenda decision on cloud computing arrangements.","es":""},"common_error":{"fr":"","en":"Concluding that software hosted by the supplier is controlled because a subscription contract exists.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Clarvia controls the software, because it uses it daily for three years.","es":""},"correct":false,"feedback":{"fr":"","en":"Daily use for three years does not give Clarvia the power to restrict third-party access to the software: the supplier hosts it, updates it on its own initiative and supplies it to other customers (IAS 38, para. 13). Clarvia has only a right of access to the service. Rule to remember: using software is not controlling it.","es":""}},{"id":"B","text":{"fr":"","en":"Clarvia controls the software as soon as the configuration costs are incurred.","es":""},"correct":false,"feedback":{"fr":"","en":"Incurring configuration costs does not transfer control of the software to Clarvia: it remains hosted and updated by the supplier, who can supply it to other customers (IAS 38, para. 13). Control of the software itself is considered before analysing those costs. Rule to remember: spending money around a resource does not prove you control it.","es":""}},{"id":"C","text":{"fr":"","en":"Clarvia does not control the software: it does not have the power to obtain its benefits while restricting the access of others, the supplier retaining command of the software.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Clarvia controls the software, because the subscription is a contract.","es":""},"correct":false,"feedback":{"fr":"","en":"A subscription gives Clarvia a right of access to the service, but a contract does not suffice to establish control: one must assess whether Clarvia has the power to obtain the software's benefits and restrict third-party access (IAS 38, para. 13). Here the supplier keeps control of the software, so no software is presented as an asset of Clarvia on that account. Rule to remember: a contract is read to see what it allows the entity to control.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000123","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000123","tested_point":"QST.IAS38.000123","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"two-criteria"},"references":["IAS 38 §18","IAS 38 §21"],"exercise":{"prompt":{"fr":"","en":"True or false? As soon as an item meets the definition of an intangible asset, it is recognised as an asset with no further condition.","es":""},"explanation":{"fr":"","en":"False. Recognition requires demonstrating that the item meets the definition and that it satisfies the recognition criteria (IAS 38, para. 18): probable attributable future economic benefits and reliable measurement of cost (IAS 38, para. 21). Approach: distinguish the definition from the recognition criteria. Trap: stopping at the definition. Rule to remember: recognition requires demonstrating the definition and the criteria, namely probable benefits and reliable measurement of cost (IAS 38, paras. 18 and 21).","es":""},"common_error":{"fr":"","en":"Stopping at the definition and forgetting the two recognition criteria.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000124","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000124","tested_point":"QST.IAS38.000124","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"two-criteria"},"references":["IAS 38 §18"],"exercise":{"prompt":{"fr":"","en":"True or false? The recognition requirements of IAS 38 cover only the initial cost of acquiring or creating an intangible asset, not the costs incurred afterwards to add to it, replace part of it or service it.","es":""},"explanation":{"fr":"","en":"False. The requirement to demonstrate the definition and the recognition criteria applies both to initial costs and to costs incurred subsequently to add to, replace part of or service the asset (IAS 38, para. 18). Approach: ask which costs the requirement to demonstrate the definition and criteria applies to. Trap: limiting it to the initial cost. Rule to remember: the requirement applies to initial costs as well as to later costs of addition, replacement or maintenance (IAS 38, para. 18).","es":""},"common_error":{"fr":"","en":"Thinking the criteria apply to the initial cost only and that later costs are exempt.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000125","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000125","tested_point":"QST.IAS38.000125","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"two-criteria"},"references":["IAS 38 §21"],"exercise":{"prompt":{"fr":"","en":"True or false? Expenditure whose cost cannot be measured reliably cannot be recognised as an intangible asset, even if it is probable that it will generate future economic benefits.","es":""},"explanation":{"fr":"","en":"True. The two recognition criteria are cumulative: an intangible asset is recognised only if the attributable future economic benefits are probable and its cost can be measured reliably (IAS 38, para. 21). Approach: check each criterion without offsetting one against the other. Trap: assuming high probability of benefits makes up for a cost that cannot be measured reliably. Rule to remember: both criteria are required together, probable benefits and a reliably measured cost (IAS 38, para. 21).","es":""},"common_error":{"fr":"","en":"Offsetting uncertainty about cost with a high probability of benefits.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000126","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000126","tested_point":"QST.IAS38.000126","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"two-criteria"},"references":["IAS 38 §21","IAS 38 §18"],"exercise":{"prompt":{"fr":"","en":"In addition to the definition of an intangible asset, what are the two recognition criteria set by IAS 38?","es":""},"explanation":{"fr":"","en":"An intangible asset is recognised if, and only if, it is probable that the attributable future economic benefits will flow to the entity and its cost can be measured reliably (IAS 38, para. 21). These criteria come on top of the definition (IAS 38, para. 18).","es":""},"common_error":{"fr":"","en":"Adding an active market or a finite useful life to the recognition criteria.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The existence of an active market and a finite useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"An active market and a finite useful life are not recognition criteria: IAS 38 requires attributable future economic benefits to be probable and the cost to be measurable reliably (IAS 38, para. 21). A licence with no active market can be recognised if it meets the definition and these two criteria (IAS 38, para. 18). Rule to remember: the two criteria are probability of benefits and reliability of cost.","es":""}},{"id":"B","text":{"fr":"","en":"Legal ownership of the item and the intention to resell it.","es":""},"correct":false,"feedback":{"fr":"","en":"Legal ownership and the intention to resell are not recognition criteria (IAS 38, para. 21). A right of use the entity will not resell can be recognised if it meets the definition and the benefits are probable and the cost reliable (IAS 38, paras. 18 and 21). Rule to remember: the criteria concern the benefits and the cost, not ownership or resale.","es":""}},{"id":"C","text":{"fr":"","en":"Certain future economic benefits and a fair value measurable by reference to an active market.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 38 requires probable, not certain, benefits and a reliably measured cost, not a fair value measured by reference to an active market (IAS 38, para. 21). Requiring certainty and an active market would wrongly exclude assets whose benefits are probable without being certain. Rule to remember: probability, not certainty, of benefits; a reliably measurable cost.","es":""}},{"id":"D","text":{"fr":"","en":"Probable attributable future economic benefits and a reliably measurable cost.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000127","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000127","tested_point":"QST.IAS38.000127","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"two-criteria"},"references":["IAS 38 §18","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"Pellane opens a new regional branch. It incurs legal costs for setting up the branch and start-up costs for the branch's activity. The finance director proposes to capitalise them, because the branch will be profitable and the invoices allow the cost to be measured reliably. What should be concluded?","es":""},"explanation":{"fr":"","en":"Recognition requires demonstrating both the definition and the criteria (IAS 38, para. 18); satisfying the probability and reliable measurement criteria is not enough. IAS 38 expressly cites start-up activities among the expenditure recognised as an expense (IAS 38, para. 69).","es":""},"common_error":{"fr":"","en":"Capitalising start-up costs because the probability and reliability criteria appear to be met.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The costs are capitalised, because both recognition criteria are met.","es":""},"correct":false,"feedback":{"fr":"","en":"The two recognition criteria are not enough: recognition also requires demonstrating that the item meets the definition (IAS 38, para. 18). The branch's legal formation and start-up costs are start-up expenditure, recognised as an expense (IAS 38, para. 69). Rule to remember: meeting the probability and reliability criteria does not allow start-up costs to be capitalised.","es":""}},{"id":"B","text":{"fr":"","en":"The costs are expensed: start-up expenditure is among the items expensed, and the criteria are not enough without the definition.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The costs are capitalised and amortised over the branch's lease term.","es":""},"correct":false,"feedback":{"fr":"","en":"The length of the branch's lease creates no asset: legal formation and start-up costs are expenditure recognised as an expense (IAS 38, para. 69). There is therefore nothing to amortise over the lease term. Rule to remember: a contemplated spreading period does not justify capitalising a start-up cost.","es":""}},{"id":"D","text":{"fr":"","en":"The costs are capitalised only if the branch makes a profit in its first year.","es":""},"correct":false,"feedback":{"fr":"","en":"The branch's expected profitability concerns future benefits, but it does not change the treatment of start-up costs, which are recognised as an expense (IAS 38, para. 69). Even a profit in the first year would leave these costs in expense. Rule to remember: the treatment of a start-up cost does not depend on the profitability of the activity launched.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000128","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA","IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000128","tested_point":"QST.IAS38.000128","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"two-criteria"},"references":["IAS 38 §21","IAS 38 §48","IAS 38 §49"],"exercise":{"prompt":{"fr":"","en":"Ferlane believes that its reputation and organisation will bring it significant future benefits. Why can it not recognise this internally generated goodwill?","es":""},"explanation":{"fr":"","en":"Internally generated goodwill is not recognised (IAS 38, para. 48): it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, para. 49). Reliable measurement of cost is one of the two recognition criteria (IAS 38, para. 21). The probability of benefits is not the issue.","es":""},"common_error":{"fr":"","en":"Believing internally generated goodwill can be recognised as soon as its benefits are judged probable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because the benefits it brings are never probable.","es":""},"correct":false,"feedback":{"fr":"","en":"The benefits expected from a good reputation may be substantial: probability is not the issue. Internally generated goodwill is not recognised because it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, para. 49). Rule to remember: internal goodwill is excluded for reasons of identifiability and cost, not probability.","es":""}},{"id":"B","text":{"fr":"","en":"Because it is not an identifiable resource and its cost cannot be measured reliably.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Because it could only be recognised after formal approval by the general meeting of shareholders.","es":""},"correct":false,"feedback":{"fr":"","en":"No shareholder approval changes the treatment: internally generated goodwill is not recognised (IAS 38, para. 48), because it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, para. 49). Rule to remember: a formal decision does not make recognisable an item that does not meet the conditions.","es":""}},{"id":"D","text":{"fr":"","en":"Because it must first be tested for impairment.","es":""},"correct":false,"feedback":{"fr":"","en":"An impairment test does not make recognisable an item that fails the conditions: internally generated goodwill is not recognised (IAS 38, para. 48) because the criterion of reliable measurement of cost is not met (IAS 38, para. 21). Rule to remember: access to recognition depends on the recognition criteria, not on a prior test.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000129","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA","IAS38.DEFINITIONS.IDENTIFIABILITY","IAS38.DEFINITIONS.CONTROL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000129","tested_point":"QST.IAS38.000129","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §18","IAS 38 §21","IAS 38 §12","IAS 38 §13"],"exercise":{"prompt":{"fr":"","en":"Which of the following must the entity demonstrate before recognising an intangible asset?","es":""},"explanation":{"fr":"","en":"Recognition requires demonstrating that the item meets the definition and the recognition criteria (IAS 38, para. 18). The definition requires in particular identifiability (IAS 38, para. 12) and control (IAS 38, para. 13); the criteria are probable attributable future benefits and reliable measurement of cost (IAS 38, para. 21). Neither an active market nor an intention to resell is required.","es":""},"common_error":{"fr":"","en":"Requiring an active market or an intention to resell in order to recognise an intangible asset.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The existence of an active market for the item.","es":""},"correct":false,"feedback":{"fr":"","en":"An active market is not a recognition condition: the entity must demonstrate the definition (identifiability, control) and the criteria of probable benefits and reliable measurement of cost (IAS 38, paras. 18 and 21). A licence with no active market can therefore be recognised if those elements are demonstrated. Rule to remember: an active market and recognition are two distinct subjects.","es":""}},{"id":"B","text":{"fr":"","en":"The identifiability of the item.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The entity's control over the resource.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The probability of future economic benefits attributable to the item.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The ability to measure the cost of the item reliably.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The intention to resell the item in the medium term.","es":""},"correct":false,"feedback":{"fr":"","en":"The intention to resell the item is neither part of the definition nor a recognition criterion (IAS 38, paras. 18 and 21). An asset used internally for several years can be recognised with no plan to resell it. Rule to remember: it is the definition and the two criteria that count, not what the entity intends to do with the item.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000130","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA","IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL","IAS38.INTERNAL_GENERATION.RESEARCH","IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000130","tested_point":"QST.IAS38.000130","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §21","IAS 38 §18","IAS 38 §48","IAS 38 §54","IAS 38 §63"],"exercise":{"prompt":{"fr":"","en":"The Orvino group is listing its expenditure for the year. Which items can be recognised as intangible assets?","es":""},"explanation":{"fr":"","en":"The acquired patent and licence meet the definition, their benefits are probable and their cost is known: they are recognised (IAS 38, para. 18 and 21). By contrast, internally generated goodwill is not recognised (IAS 38, para. 48), research expenditure is recognised as an expense (IAS 38, para. 54) and internally generated brands are not recognised as intangible assets (IAS 38, para. 63).","es":""},"common_error":{"fr":"","en":"Recognising an item because the benefits are probable, without checking that it is not excluded (internal goodwill, research, internal brand).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The price paid in cash for a patent bought from an inventor, whose use is expected to generate probable benefits.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The estimated value of the goodwill generated by the quality of the group's organisation.","es":""},"correct":false,"feedback":{"fr":"","en":"Internally generated goodwill is not recognised: it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, paras. 48 and 49). An estimated value is not a reliably measured cost. In the group's financial statements, no internal goodwill therefore appears as an asset. Rule to remember: an estimate of value does not replace a reliable cost.","es":""}},{"id":"C","text":{"fr":"","en":"The expenditure on a basic research programme on new materials.","es":""},"correct":false,"feedback":{"fr":"","en":"Research expenditure is recognised as an expense when incurred: no intangible asset is recognised from research (IAS 38, para. 54). A fundamental research programme on new materials therefore does not meet the conditions, even if future applications are hoped for. Rule to remember: research expenditure is an expense when incurred.","es":""}},{"id":"D","text":{"fr":"","en":"The expenditure on creating a new product brand internally.","es":""},"correct":false,"feedback":{"fr":"","en":"An internally generated brand is not recognised as an intangible asset, nor are similar mastheads or customer lists (IAS 38, para. 63). The expenditure incurred to create it is therefore not carried as an asset in the group's financial statements. Rule to remember: an internally generated brand is not recognised as an intangible asset.","es":""}},{"id":"E","text":{"fr":"","en":"The price invoiced for a software licence acquired from a vendor, whose use will bring probable cost savings.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000131","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA","IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000131","tested_point":"QST.IAS38.000131","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"development-rule"},"references":["IAS 38 §21","IAS 38 §57"],"exercise":{"prompt":{"fr":"","en":"Trevalia is developing a planning tool internally. All the development-phase criteria are demonstrated except one: developers' hours are not tracked by project and are buried in the IT department's overheads, with no documented allocation key. Management proposes to capitalise a lump sum estimated at half of the department's cost. What should be concluded?","es":""},"explanation":{"fr":"","en":"An intangible asset is recognised only if its cost can be measured reliably (IAS 38, para. 21); for internal development, the entity must in particular demonstrate its ability to measure the attributable expenditure reliably (IAS 38, para. 57). An unsupported lump sum does not meet this requirement: nothing is capitalised until reliable tracking is in place.","es":""},"common_error":{"fr":"","en":"Capitalising an estimated lump sum when the project's expenditure cannot be measured reliably.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The lump sum is acceptable, because all the other criteria are demonstrated.","es":""},"correct":false,"feedback":{"fr":"","en":"The development-phase criteria are cumulative: if one is missing, no intangible asset is recognised (IAS 38, para. 57). Here the entity must demonstrate its ability to measure the attributable expenditure reliably, which an unsupported lump sum does not allow. Rule to remember: one missing criterion prevents recognition, even if all the others are demonstrated.","es":""}},{"id":"B","text":{"fr":"","en":"The lump sum is acceptable if the auditors approve it.","es":""},"correct":false,"feedback":{"fr":"","en":"External approval does not replace a reliable measurement of the expenditure: the ability to measure reliably the expenditure attributable to development is a criterion the entity must demonstrate (IAS 38, para. 57). A third party's opinion on a lump sum does not make up for a criterion not demonstrated. Rule to remember: a third party's opinion does not replace a recognition criterion that has not been demonstrated.","es":""}},{"id":"C","text":{"fr":"","en":"No amount is capitalised as long as the project expenditure cannot be measured reliably.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The whole cost of the IT department is capitalised, since the project cannot be isolated.","es":""},"correct":false,"feedback":{"fr":"","en":"Capitalising the whole cost of the IT department would worsen the problem: the expenditure attributable to the project is not isolated, whereas the cost must be reliably measurable (IAS 38, paras. 21 and 57). It would amount to including expenditure unrelated to the project. Rule to remember: unless the project's expenditure is isolated, nothing is capitalised.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000132","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA","IAS38.DEFINITIONS.CONTROL"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000132","tested_point":"QST.IAS38.000132","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §18","IAS 38 §21","IAS 38 §16"],"exercise":{"prompt":{"fr":"","en":"Calvenor pays a lump sum to a marketing agency to win new individual customers, who are free to buy elsewhere and bound by no contract; no sale of similar customer relationships is observed in the industry. The finance director notes that the invoice allows the cost to be measured reliably and that additional sales are probable; he proposes to capitalise the amount. Which analysis should be retained?","es":""},"explanation":{"fr":"","en":"Recognition requires demonstrating both the definition and the criteria (IAS 38, para. 18); satisfying the probability and reliable measurement criteria (IAS 38, para. 21) is not enough. Without legal rights or exchange transactions for similar relationships, Calvenor usually has insufficient control over these customer relationships (IAS 38, para. 16): the definition is not met.","es":""},"common_error":{"fr":"","en":"Capitalising customer-acquisition spending because the cost is reliable and sales are probable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Capitalisation is justified, since both recognition criteria are satisfied.","es":""},"correct":false,"feedback":{"fr":"","en":"The two recognition criteria are met, but they are not enough: recognition also requires demonstrating the definition (IAS 38, para. 18). Without legal rights or exchange transactions for similar relationships, Calvenor generally lacks sufficient control over these customers (IAS 38, para. 16). In its financial statements, the sum paid to the agency is therefore not presented as an asset. Rule to remember: meeting the criteria does not remove the need to demonstrate the definition.","es":""}},{"id":"B","text":{"fr":"","en":"The criteria are not enough: without control over the customer relationships, the definition is not met and the amount is not capitalised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The amount is capitalised up to the additional sales made during the year.","es":""},"correct":false,"feedback":{"fr":"","en":"No amount is capitalised if the definition is not met: additional sales made during the year do not create control over the customer relationships (IAS 38, para. 16). An asset proportional to the sales obtained is not provided for by these paragraphs. Rule to remember: sales obtained do not replace control.","es":""}},{"id":"D","text":{"fr":"","en":"The amount is capitalised, because an invoice establishes control over the resource obtained.","es":""},"correct":false,"feedback":{"fr":"","en":"An invoice proves the cost, not that there is a means of controlling the customer relationship or loyalty: without legal rights or other means, control is generally not sufficient (IAS 38, para. 16). Calvenor's customers remain free to buy elsewhere. Rule to remember: an accounting document proves an amount, not power over the customer base.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000134","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.SUBSEQUENT_EXPENDITURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000134","tested_point":"QST.IAS38.000134","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"subsequent-expenditure"},"references":["IAS 38 §20"],"exercise":{"prompt":{"fr":"","en":"True or false? Expenditure incurred to update and enrich a customer list acquired two years ago can be added to its carrying amount when it increases the list's commercial value.","es":""},"explanation":{"fr":"","en":"False. Subsequent expenditure on customer lists, like that on brands or publishing titles, is always recognised in profit or loss as incurred, whether or not the item was acquired (IAS 38, para. 20). Such expenditure is hard to distinguish from developing the business as a whole. Approach: identify the nature of the item (customer list) before applying the rule on subsequent expenditure. Trap: adding the expenditure because it increases commercial value. Rule to remember: subsequent expenditure on customer lists, brands and mastheads, whether acquired or internally generated, is always recognised in profit or loss as incurred (IAS 38, para. 20).","es":""},"common_error":{"fr":"","en":"Adding to the acquired customer list the update costs that increase its commercial value.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000135","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.SUBSEQUENT_EXPENDITURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000135","tested_point":"QST.IAS38.000135","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"subsequent-expenditure"},"references":["IAS 38 §20"],"exercise":{"prompt":{"fr":"","en":"Why does IAS 38 consider that subsequent expenditure on an intangible asset is only rarely added to its carrying amount?","es":""},"explanation":{"fr":"","en":"Most subsequent expenditure maintains the expected future economic benefits of an existing intangible asset, and it is often difficult to attribute it to a particular asset rather than to the business as a whole: it is therefore only rarely added to the carrying amount (IAS 38, para. 20).","es":""},"common_error":{"fr":"","en":"Seeing in the rare capitalisation of subsequent expenditure a general prohibition rather than a consequence of its nature.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because intangible assets are always amortised over a short period.","es":""},"correct":false,"feedback":{"fr":"","en":"Amortisation period is not the reason IAS 38 gives: additions or replacements are rare because most subsequent expenditure maintains the expected benefits of the existing asset and is hard to attribute to a particular asset (IAS 38, para. 20). Rule to remember: it is the nature of this expenditure, maintaining benefits and being hard to attribute, that explains why it is rarely added to the carrying amount.","es":""}},{"id":"B","text":{"fr":"","en":"Because such expenditure is generally paid in cash.","es":""},"correct":false,"feedback":{"fr":"","en":"The method of settlement, cash or credit, changes nothing about recognition: IAS 38 explains the rare capitalisation of subsequent expenditure by its nature, which maintains the expected benefits of the existing asset and is hard to attribute to a particular asset (IAS 38, para. 20). Rule to remember: what matters is the nature of the expenditure, not how it is paid.","es":""}},{"id":"C","text":{"fr":"","en":"Because most of it maintains the expected benefits of the existing asset and is hard to attribute to a particular asset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Because IAS 38 prohibits capitalising any expenditure after the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 38 describes rare capitalisation, not a general prohibition: it is exceptional. By contrast, for brands, mastheads, customer lists and similar items, subsequent expenditure is always recognised in profit or loss (IAS 38, para. 20). Rule to remember: capitalising subsequent expenditure is exceptional, with a firm rule for brands, mastheads and customer lists.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000136","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.SUBSEQUENT_EXPENDITURE","IAS38.OTHER_ACQUISITIONS.IN_PROCESS_RD","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000136","tested_point":"QST.IAS38.000136","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"subsequent-expenditure"},"references":["IAS 38 §20","IAS 38 §43","IAS 38 §27","IAS 38 §28"],"exercise":{"prompt":{"fr":"","en":"The Daveron group incurs the following expenditure during the year. Which item must be recognised in profit or loss as soon as it is incurred?","es":""},"explanation":{"fr":"","en":"Subsequent expenditure on customer lists, brands or titles is always recognised in profit or loss (IAS 38, para. 20). Development expenditure meeting the criteria on an acquired project is added to its carrying amount (IAS 38, para. 43). Non-refundable import duties and installation and testing fees are part of the cost of an acquired licence (IAS 38, para. 27 and 28).","es":""},"common_error":{"fr":"","en":"Putting in profit or loss costs that form part of an acquired asset's cost, or conversely capitalising spending on a customer file.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Cleaning and updating a customer file acquired when a business was bought.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Development expenditure, meeting all the criteria, on a separately acquired in-process research and development project.","es":""},"correct":false,"feedback":{"fr":"","en":"Development expenditure that meets all the criteria on an in-process research and development project acquired separately is added to the project's carrying amount, not recognised in profit or loss (IAS 38, para. 43). In Daveron's financial statements, the acquired project therefore increases by this expenditure. Rule to remember: on an acquired in-process project, development expenditure that meets the criteria is added to the carrying amount, research expenditure is expensed.","es":""}},{"id":"C","text":{"fr":"","en":"The fees of a consultant who installs and tests a newly acquired software licence, before it goes live.","es":""},"correct":false,"feedback":{"fr":"","en":"A consultant's fees for installing and testing a licence before it enters service prepare the asset for use: they form part of its cost (IAS 38, para. 28). They therefore do not go to profit or loss when incurred. Rule to remember: the costs of getting an acquired asset ready are included in its cost.","es":""}},{"id":"D","text":{"fr":"","en":"Non-refundable import duties paid on the purchase of a foreign licence.","es":""},"correct":false,"feedback":{"fr":"","en":"Non-refundable import duties form part of the licence's purchase price, hence of its cost (IAS 38, para. 27). They are not recognised in profit or loss. Subsequent expenditure on an acquired customer file, by contrast, follows the profit-or-loss rule (IAS 38, para. 20). Rule to remember: non-refundable import duties = cost of the asset; updating an acquired customer file = profit or loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000137","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.SUBSEQUENT_EXPENDITURE","IAS38.RECOGNITION.CRITERIA"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000137","tested_point":"QST.IAS38.000137","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"two-criteria"},"references":["IAS 38 §20","IAS 38 §18"],"exercise":{"prompt":{"fr":"","en":"A year ago, Elmora acquired a cosmetics brand, recognised as an intangible asset. This year, it hires an agency to reposition the brand: a positioning study, a new logo and new graphic guidelines for the packaging. The marketing director believes this work durably strengthens the value of the brand and asks for it to be added to the brand's carrying amount. What should be concluded?","es":""},"explanation":{"fr":"","en":"Subsequent expenditure on a brand is always recognised in profit or loss as incurred, including when the brand was acquired, because it cannot be distinguished from developing the business as a whole (IAS 38, para. 20). The recognition requirements apply to subsequent costs as well as to initial costs (IAS 38, para. 18).","es":""},"common_error":{"fr":"","en":"Adding repositioning costs to the acquired brand on the grounds that they strengthen its value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The work is added to the carrying amount of the brand, because it increases its value.","es":""},"correct":false,"feedback":{"fr":"","en":"The alleged increase in value does not allow the expenditure to be capitalised: subsequent expenditure on a brand, acquired or internally generated, is always recognised in profit or loss as incurred (IAS 38, para. 20). In Elmora's financial statements, the brand's carrying amount stays unchanged and the expenditure weighs on profit or loss. Rule to remember: lasting strengthening of a brand does not permit adding the expenditure to its carrying amount.","es":""}},{"id":"B","text":{"fr":"","en":"Only the new logo is added to the carrying amount, the study being expensed.","es":""},"correct":false,"feedback":{"fr":"","en":"No component of the repositioning is capitalised: study, logo and graphic charter are all subsequent expenditure on a brand, recognised in profit or loss as incurred (IAS 38, para. 20). Splitting out the logo as an identifiable addition would go against this rule, which covers expenditure that is hard to distinguish from developing the business as a whole. Rule to remember: one does not carve out part of a brand repositioning in order to capitalise it.","es":""}},{"id":"C","text":{"fr":"","en":"The work is added to the carrying amount, because the brand was acquired and not internally generated.","es":""},"correct":false,"feedback":{"fr":"","en":"The fact that the brand was acquired changes nothing: the rule covers acquired and internally generated brands, and their subsequent expenditure is recognised in profit or loss (IAS 38, para. 20). The recognition conditions also apply to subsequent costs (IAS 38, para. 18). Rule to remember: the brand having been acquired does not allow its subsequent expenditure to be capitalised.","es":""}},{"id":"D","text":{"fr":"","en":"The work is recognised in profit or loss when it is incurred.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000141","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.INITIAL_MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000141","tested_point":"QST.IAS38.000141","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":30,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"initial-measurement"},"references":["IAS 38 §24"],"exercise":{"prompt":{"fr":"","en":"True or false? On initial recognition, an intangible asset is measured at cost.","es":""},"explanation":{"fr":"","en":"True. IAS 38 sets a single basis for initial measurement: an intangible asset is measured initially at cost (IAS 38, para. 24). How that cost is determined then varies with the way the asset is obtained. Approach: first identify the basis of initial measurement, before the rules for determining cost. Trap: substituting another basis, such as fair value. Rule to remember: an intangible asset is measured initially at cost (IAS 38, para. 24).","es":""},"common_error":{"fr":"","en":"Thinking initial measurement can be done on a basis other than cost.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000142","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.INITIAL_MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000142","tested_point":"QST.IAS38.000141","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":30,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"initial-measurement"},"references":["IAS 38 §24"],"exercise":{"prompt":{"fr":"","en":"True or false? An intangible asset is measured initially at fair value, measurement at cost being merely an option available to entities.","es":""},"explanation":{"fr":"","en":"False. IAS 38 offers no choice for initial measurement: an intangible asset is measured initially at cost (IAS 38, para. 24). Approach: check whether the standard leaves a choice at initial recognition. Trap: carrying over to initial measurement an option that does not exist there. Rule to remember: initial measurement is at cost, with no choice offered to the entity (IAS 38, para. 24).","es":""},"common_error":{"fr":"","en":"Believing fair value is a basis of initial measurement left to the entity's choice.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS38.000143","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.INITIAL_MEASUREMENT","IAS38.OTHER_ACQUISITIONS.BUSINESS_COMBINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000143","tested_point":"QST.IAS38.000143","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"initial-measurement"},"references":["IAS 38 §24","IAS 38 §33"],"exercise":{"prompt":{"fr":"","en":"True or false? For an intangible asset acquired in a business combination, the cost used at initial measurement is its fair value at the acquisition date.","es":""},"explanation":{"fr":"","en":"True. Initial measurement is at cost (IAS 38, para. 24); when an intangible asset is acquired in a business combination, its cost is its fair value at the acquisition date (IAS 38, para. 33). The cost principle is therefore respected, with fair value used to measure that cost. Approach: start from the cost principle, then read how the asset was obtained (business combination). Trap: setting cost against fair value. Rule to remember: in a business combination, the cost of the intangible asset is its fair value at the acquisition date (IAS 38, paras. 24 and 33).","es":""},"common_error":{"fr":"","en":"Setting cost against fair value, when in a business combination fair value at the acquisition date is the cost.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000144","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.INITIAL_MEASUREMENT","IAS38.SEPARATE_ACQUISITION.DEFERRED_PAYMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000144","tested_point":"QST.IAS38.000144","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"initial-measurement"},"references":["IAS 38 §24","IAS 38 §32"],"exercise":{"prompt":{"fr":"","en":"True or false? When payment for an acquired licence is deferred beyond normal credit terms, its initial cost is the total of the scheduled payments, including the portion that remunerates the credit.","es":""},"explanation":{"fr":"","en":"False. The asset is measured initially at cost (IAS 38, para. 24). When payment is deferred beyond normal credit terms, that cost is the cash price equivalent; the difference from the total payments is recognised as interest expense over the period of credit, unless it is capitalised in accordance with IAS 23 (IAS 38, para. 32). Approach: spot a payment deferred beyond normal credit terms, then isolate the cash price equivalent. Trap: using the total of the payments. Rule to remember: cost is the cash price equivalent; the difference is interest expense over the credit period, unless capitalised under IAS 23 (IAS 38, para. 32).","es":""},"common_error":{"fr":"","en":"Using the nominal sum of the deferred payments instead of the cash price equivalent.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000145","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.INITIAL_MEASUREMENT","IAS38.INTERNAL_GENERATION.COST","IAS38.EXPENSE.PAST_EXPENSES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000145","tested_point":"QST.IAS38.000145","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §24","IAS 38 §65","IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"True or false? The initial cost of an internally generated intangible asset includes the expenditure incurred before the date on which it first met the recognition criteria.","es":""},"explanation":{"fr":"","en":"False. The asset is measured initially at cost (IAS 38, para. 24); for an internally generated asset, that cost is the sum of the expenditure incurred from the date on which it first meets the recognition criteria (IAS 38, para. 65). Earlier expenditure, already recognised as an expense, is not reinstated in cost (IAS 38, para. 71). Approach: find the date when the asset first meets the criteria, then include only expenditure incurred from that date. Trap: adding back earlier expenditure already expensed. Rule to remember: the cost of an internally generated asset is the sum of expenditure incurred from that date (IAS 38, para. 65), and expenditure already expensed is not reinstated (IAS 38, para. 71).","es":""},"common_error":{"fr":"","en":"Adding back to cost expenditure incurred before the criteria were met, already expensed.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000146","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.INITIAL_MEASUREMENT","IAS38.OTHER_ACQUISITIONS.EXCHANGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000146","tested_point":"QST.IAS38.000146","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"initial-measurement"},"references":["IAS 38 §24","IAS 38 §45"],"exercise":{"prompt":{"fr":"","en":"True or false? An intangible asset received in exchange for another asset is measured at fair value, unless the exchange lacks commercial substance or neither the fair value of the asset received nor that of the asset given up can be measured reliably; in that case, its cost is the carrying amount of the asset given up.","es":""},"explanation":{"fr":"","en":"True. Initial measurement is at cost (IAS 38, para. 24). For an asset acquired in an exchange, that cost is measured at fair value, unless the exchange lacks commercial substance or neither the fair value of the asset received nor that of the asset given up can be measured reliably; cost is then the carrying amount of the asset given up (IAS 38, para. 45). Approach: start from fair value, then test the two exceptions: lack of commercial substance, and the impossibility of measuring either of the two fair values reliably. Trap: applying fair value to an exchange that lacks commercial substance, or switching to the carrying amount as soon as the fair value of the asset received is uncertain while that of the asset given up is reliable. Rule to remember: the carrying amount of the asset given up applies when there is no commercial substance, or when neither of the two fair values is reliable (IAS 38, para. 45).","es":""},"common_error":{"fr":"","en":"Recognising a gain by measuring at fair value an exchange that lacks commercial substance.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000147","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.INITIAL_MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000147","tested_point":"QST.IAS38.000147","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":30,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"initial-measurement"},"references":["IAS 38 §24"],"exercise":{"prompt":{"fr":"","en":"Tarvine is recognising an operating licence for the first time. On what basis does it measure it initially?","es":""},"explanation":{"fr":"","en":"An intangible asset is measured initially at cost (IAS 38, para. 24). Neither a fair value at the reporting date, nor a present value of expected cash flows, nor a revalued amount is the basis for initial measurement.","es":""},"common_error":{"fr":"","en":"Measuring a licence on entry at its reporting-date fair value or at the value of expected cash flows rather than at cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its fair value at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value at the reporting date is not the basis of initial measurement: an intangible asset is measured at cost on initial recognition (IAS 38, para. 24). Tarvine therefore records the licence at what it cost, not at a value observed later. Rule to remember: on initial recognition, the measurement basis is cost.","es":""}},{"id":"B","text":{"fr":"","en":"Its cost.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The present value of the cash flows Tarvine expects to derive from it.","es":""},"correct":false,"feedback":{"fr":"","en":"The present value of the cash flows Tarvine hopes to obtain from the licence is an estimate of benefits, not the basis of measurement on initial recognition: IAS 38 uses cost (IAS 38, para. 24). For example, a licence bought for 100 is recorded at its cost, even if the entity expects 150 of cash flows. Rule to remember: initial measurement rests on cost, not on expected cash flows.","es":""}},{"id":"D","text":{"fr":"","en":"A revalued amount determined by an independent expert.","es":""},"correct":false,"feedback":{"fr":"","en":"A revalued amount is not an entry basis: initial measurement is at cost (IAS 38, para. 24). The amount set by an independent expert does not take the place of the licence's cost at initial recognition. Rule to remember: on entry, cost is the basis, not an expert's valuation.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000148","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.INITIAL_MEASUREMENT","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000148","tested_point":"QST.IAS38.000148","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"initial-measurement"},"references":["IAS 38 §24","IAS 38 §27","IAS 38 §28"],"exercise":{"prompt":{"fr":"","en":"Corbeline buys a software licence from a foreign vendor at a list price of 120,000. It obtains a trade discount of 10,000, pays 6,000 of non-refundable import duties and incurs 4,000 of testing to check that the software works properly before it goes live. What is the initial cost of the licence?","es":""},"explanation":{"fr":"","en":"The licence is measured initially at cost (IAS 38, para. 24). That cost comprises the purchase price, including non-refundable import duties and after deducting discounts (IAS 38, para. 27), and directly attributable costs such as testing whether the asset works properly (IAS 38, para. 28): 120,000 − 10,000 + 6,000 + 4,000 = 120,000.","es":""},"common_error":{"fr":"","en":"Forgetting the trade discount, or not adding non-refundable duties and testing costs to the purchase price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"120,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"130,000","es":""},"correct":false,"feedback":{"fr":"","en":"130,000 does not deduct the 10,000 trade discount: purchase price is stated after discounts and rebates (IAS 38, para. 27). The correct calculation is 120,000 − 10,000 + 6,000 + 4,000 = 120,000. Rule to remember: the purchase price is computed after discount, with non-refundable import duties included.","es":""}},{"id":"C","text":{"fr":"","en":"116,000","es":""},"correct":false,"feedback":{"fr":"","en":"116,000 leaves out the 4,000 of tests of proper functioning, which are directly attributable costs of preparing the asset (IAS 38, para. 28). Added to the net price (120,000 − 10,000 + 6,000 = 116,000), they bring the cost to 120,000. Rule to remember: testing costs before the asset enters service are added to its cost.","es":""}},{"id":"D","text":{"fr":"","en":"114,000","es":""},"correct":false,"feedback":{"fr":"","en":"114,000 omits the 6,000 of non-refundable import duties, which form part of the purchase price (IAS 38, para. 27). The correct calculation adds these duties and the tests: 120,000 − 10,000 + 6,000 + 4,000 = 120,000. Rule to remember: the purchase price includes non-refundable import duties, net of discount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000149","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.INITIAL_MEASUREMENT","IAS38.OTHER_ACQUISITIONS.BUSINESS_COMBINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000149","tested_point":"QST.IAS38.000149","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"initial-measurement"},"references":["IAS 38 §24","IAS 38 §33"],"exercise":{"prompt":{"fr":"","en":"The Asteval group obtains control of Briven in a business combination and recognises a Briven patent separately from goodwill. In Briven's accounts, the patent cost 200,000 and is carried at 80,000. An independent valuer estimates its fair value at the acquisition date at 350,000. At what amount does Asteval initially recognise the patent?","es":""},"explanation":{"fr":"","en":"An intangible asset is measured initially at cost (IAS 38, para. 24); in a business combination, that cost is its fair value at the acquisition date (IAS 38, para. 33). Asteval therefore recognises the patent at 350,000, disregarding both the historical cost and the carrying amount at Briven.","es":""},"common_error":{"fr":"","en":"Carrying over the acquiree's carrying amount or historical cost instead of fair value at the acquisition date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"80,000","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount in the acquiree (80,000) is not the cost to the acquirer: in a business combination, cost is fair value at the acquisition date (IAS 38, para. 33). Asteval therefore recognises the patent at 350,000. Rule to remember: the acquirer measures at fair value, not at the acquiree's carrying amount.","es":""}},{"id":"B","text":{"fr":"","en":"200,000","es":""},"correct":false,"feedback":{"fr":"","en":"Briven's historical cost (200,000) is irrelevant to the acquirer: an asset acquired in a business combination is measured at fair value at the acquisition date, here 350,000 (IAS 38, para. 33). Rule to remember: the seller's cost history does not determine the acquirer's cost.","es":""}},{"id":"C","text":{"fr":"","en":"350,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Zero, since the patent is already amortised at Briven","es":""},"correct":false,"feedback":{"fr":"","en":"The amortisation already charged at Briven does not affect the cost to Asteval: the patent is recognised at fair value at the acquisition date, here 350,000, not at zero (IAS 38, para. 33). In Asteval's financial statements, the patent therefore appears at that amount. Rule to remember: the asset's accounting history in the acquiree does not change its fair value at the acquisition date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000150","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.INITIAL_MEASUREMENT","IAS38.OTHER_ACQUISITIONS.GOVERNMENT_GRANT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000150","tested_point":"QST.IAS38.000150","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"initial-measurement"},"references":["IAS 38 §24","IAS 38 §44"],"exercise":{"prompt":{"fr":"","en":"Aeralis receives airport slot rights free of charge from the State by way of a government grant. Which initial measurement treatments does IAS 38 permit?","es":""},"explanation":{"fr":"","en":"Initial measurement is at cost (IAS 38, para. 24). For an asset received free of charge or for nominal consideration by way of a government grant, the entity may recognise both the asset and the grant at fair value, or recognise the asset at the nominal amount plus any expenditure directly attributable to preparing it (IAS 38, para. 44).","es":""},"common_error":{"fr":"","en":"Believing fair value is mandatory for an asset received through a government grant, or ignoring the option of the nominal amount plus attributable expenditure.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only the nominal amount paid, that is zero, with no other possibility.","es":""},"correct":false,"feedback":{"fr":"","en":"Limiting the treatment to a zero amount is not what the rule says: for an asset received free of charge through a government grant, the nominal amount is an option, but it is increased by expenditure directly attributable to preparing the asset, and fair value remains possible (IAS 38, para. 44). Rule to remember: two treatments are allowed, fair value or nominal amount plus attributable expenditure.","es":""}},{"id":"B","text":{"fr":"","en":"The historical cost borne by the State to create the slots.","es":""},"correct":false,"feedback":{"fr":"","en":"The cost the State incurred to create the slots is not a basis provided for: for an asset received free of charge or for a nominal price through a government grant, the entity may use the fair value of the asset and the grant, or the nominal amount plus directly attributable expenditure (IAS 38, para. 44). Rule to remember: Aeralis looks at its own position (fair value or nominal amount), not at the State's costs.","es":""}},{"id":"C","text":{"fr":"","en":"Either fair value for both the asset and the grant, or the nominal amount plus directly attributable expenditure.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Fair value in all cases, with no other option.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value is not mandatory: the standard also permits recognising the asset at the nominal amount plus expenditure directly attributable to preparing it (IAS 38, para. 44). Aeralis therefore has a choice between two treatments. Rule to remember: two treatments are permitted for an asset received through a government grant.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000151","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.INITIAL_MEASUREMENT","IAS38.OTHER_ACQUISITIONS.EXCHANGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000151","tested_point":"QST.IAS38.000151","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"initial-measurement"},"references":["IAS 38 §24","IAS 38 §45"],"exercise":{"prompt":{"fr":"","en":"Lindora exchanges a broadcasting licence for a broadcasting licence covering another region, held by a peer. The analysis concludes that the exchange lacks commercial substance. The licence given up has a carrying amount of 140,000 and a fair value of 185,000; the licence received has a fair value of 190,000. At what amount does Lindora initially recognise the licence received?","es":""},"explanation":{"fr":"","en":"The licence received is measured initially at cost (IAS 38, para. 24). For an asset acquired in an exchange, cost is in principle measured at fair value; but when the exchange lacks commercial substance, it is equal to the carrying amount of the asset given up (IAS 38, para. 45), that is 140,000.","es":""},"common_error":{"fr":"","en":"Measuring at fair value an exchange that lacks commercial substance and recognising a gain.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"190,000","es":""},"correct":false,"feedback":{"fr":"","en":"190,000 is the fair value of the licence received, but fair value is not used when the exchange lacks commercial substance: cost is then the carrying amount of the asset given up, here 140,000 (IAS 38, para. 45). Rule to remember: without commercial substance, use the carrying amount of the asset given up.","es":""}},{"id":"B","text":{"fr":"","en":"140,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"185,000","es":""},"correct":false,"feedback":{"fr":"","en":"185,000 is the fair value of the licence given up: it is not used where there is no commercial substance, because cost is the carrying amount of the asset given up, here 140,000 (IAS 38, para. 45). Using 185,000 would show a gain of 45,000 on an exchange without commercial substance. Rule to remember: lack of commercial substance rules out fair value.","es":""}},{"id":"D","text":{"fr":"","en":"Zero, since no cash was paid","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a cash payment does not imply a zero cost: the licence received is measured at the carrying amount of the asset given up, here 140,000, when the exchange lacks commercial substance (IAS 38, para. 45). Lindora gave up an asset in return, which sets the cost. Rule to remember: an exchange without cash does not yield an asset at zero cost.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000152","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.INITIAL_MEASUREMENT","IAS38.INTERNAL_GENERATION.COST","IAS38.EXPENSE.PAST_EXPENSES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000152","tested_point":"QST.IAS38.000152","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §24","IAS 38 §65","IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"Quenvia is developing a pricing tool internally. The expenditure incurred from 1 January to 31 March 20X1, amounting to 30,000, was expensed. The project first meets all the recognition criteria on 1 April 20X1; the directly attributable expenditure incurred afterwards until the tool goes live amounts to 75,000. What is the initial cost of the asset?","es":""},"explanation":{"fr":"","en":"The asset is measured initially at cost (IAS 38, para. 24). For an internally generated asset, cost is the sum of the expenditure incurred from the date on which it first meets the criteria, that is 75,000 (IAS 38, para. 65). The 30,000 already expensed is not reinstated (IAS 38, para. 71).","es":""},"common_error":{"fr":"","en":"Adding back to the asset's cost development expenditure already expensed before the criteria date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"105,000","es":""},"correct":false,"feedback":{"fr":"","en":"105,000 adds back the 30,000 incurred before 1 April, already expensed: the cost of an internally generated asset is the sum of expenditure incurred from the date it first meets the criteria (IAS 38, para. 65), and expenditure already expensed is not reinstated (IAS 38, para. 71). Rule to remember: cost starts on the date the criteria are met.","es":""}},{"id":"B","text":{"fr":"","en":"30,000","es":""},"correct":false,"feedback":{"fr":"","en":"30,000 corresponds to expenditure incurred before the criteria were met, which stayed in expense: it does not form part of the cost (IAS 38, para. 71). The cost is the sum of expenditure incurred since 1 April 20X1, that is 75,000 (IAS 38, para. 65). Rule to remember: the cost of an internally generated asset is measured from the date the criteria are met.","es":""}},{"id":"C","text":{"fr":"","en":"Zero, since part of the project has already been expensed","es":""},"correct":false,"feedback":{"fr":"","en":"The 30,000 expensed before 1 April do not prevent capitalising the 75,000 incurred afterwards: cost is the sum of expenditure incurred from the date the criteria are first met (IAS 38, para. 65). A zero cost would ignore later expenditure that forms part of the cost. Rule to remember: earlier expenses do not block recognition of expenditure incurred after the criteria are met.","es":""}},{"id":"D","text":{"fr":"","en":"75,000","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000153","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000153","tested_point":"QST.IAS38.000153","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §27"],"exercise":{"prompt":{"fr":"","en":"True or false? When an entity imports separately acquired software, the import duties it cannot recover form part of the cost of the intangible asset.","es":""},"explanation":{"fr":"","en":"True. The purchase price of a separately acquired intangible asset includes import duties and non-refundable taxes, after deducting trade discounts and rebates (IAS 38, para. 27). Conversely, a tax that the entity recovers is not a cost of the asset. Approach: build up the purchase price (price, non-refundable duties and taxes, less discounts), then add directly attributable costs. Trap: leaving out a tax the entity cannot recover. Rule to remember: non-refundable import duties and taxes are part of cost, a recoverable tax is not (IAS 38, para. 27).","es":""},"common_error":{"fr":"","en":"Leaving non-refundable import duties out of cost or, conversely, including a recoverable tax in it.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000154","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000154","tested_point":"QST.IAS38.000154","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §28","IAS 38 §27"],"exercise":{"prompt":{"fr":"","en":"True or false? The salaries of the entity's IT staff who install and configure acquired software, before it goes live, are expensed because they are not paid to the software vendor.","es":""},"explanation":{"fr":"","en":"False. In addition to the purchase price, cost comprises the costs directly attributable to preparing the asset for its intended use (IAS 38, para. 27). Employee benefits arising directly from bringing the asset to its working condition are part of it (IAS 38, para. 28), even though they are not paid to the vendor. Approach: ask whether the cost directly prepares the asset, whoever receives the payment. Trap: excluding internal salaries because they are not paid to the seller. Rule to remember: employee benefits arising directly from bringing the asset to working condition are included in cost (IAS 38, paras. 27 and 28).","es":""},"common_error":{"fr":"","en":"Expensing internal configuration salaries before go-live on the grounds that they are not paid to the seller.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000155","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS","IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000155","tested_point":"QST.IAS38.000155","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §28","IAS 38 §29","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"A testing laboratory, Biomeris, acquires a licence for sample-processing software. Which of the following items of expenditure is directly attributable to preparing the asset?","es":""},"explanation":{"fr":"","en":"Professional fees and the costs of testing whether the asset functions properly are directly attributable costs (IAS 38, para. 28). By contrast, presenting a new service to customers and administration and other general overheads are not part of cost (IAS 38, para. 29), and staff training is recognised as an expense (IAS 38, para. 69).","es":""},"common_error":{"fr":"","en":"Including in the software's cost promotion, training or overheads allocated to the project.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The information campaign aimed at prescribing doctors to present the new turnaround time for results","es":""},"correct":false,"feedback":{"fr":"","en":"A campaign presenting a new turnaround time to prescribing doctors is a launch of a new service and promotion: such costs are not part of the asset's cost (IAS 38, para. 29), and advertising and promotion are recognised as an expense (IAS 38, para. 69). Rule to remember: what serves to make the service known does not prepare the asset.","es":""}},{"id":"B","text":{"fr":"","en":"The fees of an integrator who tests that the software works properly before it goes live","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The share of head-office costs allocated to the roll-out project","es":""},"correct":false,"feedback":{"fr":"","en":"The share of head-office costs allocated to the roll-out project is an administrative and general overhead: it is not part of the asset's cost, even when allocated to the project (IAS 38, para. 29). Costs directly attributable to preparing the asset, such as testing fees, are included (IAS 38, para. 28). Rule to remember: allocating an overhead to a project does not make it directly attributable.","es":""}},{"id":"D","text":{"fr":"","en":"The training of the technicians who will use the software every day","es":""},"correct":false,"feedback":{"fr":"","en":"Training the technicians who will use the software is training expenditure, recognised as an expense (IAS 38, para. 69) and excluded from the asset's cost (IAS 38, para. 29). It prepares the users, not the asset itself. Rule to remember: staff training is not a cost of the asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000156","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000156","tested_point":"QST.IAS38.000156","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §27","IAS 38 §28"],"exercise":{"prompt":{"fr":"","en":"An architecture firm, Orbis, imports building-modelling software. The vendor grants it a trade discount on the list price. Which statements about the cost of the intangible asset are correct?","es":""},"explanation":{"fr":"","en":"The purchase price includes import duties and non-refundable taxes and is measured after deducting trade discounts and rebates (IAS 38, para. 27). Professional fees and the costs of testing whether the asset functions properly are directly attributable costs (IAS 38, para. 28). Recovered VAT is not a non-refundable tax: it stays outside cost.","es":""},"common_error":{"fr":"","en":"Adding a recovered tax to cost or ignoring the trade discount granted by the seller.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The VAT invoiced, which Orbis recovers in full, is added to cost.","es":""},"correct":false,"feedback":{"fr":"","en":"VAT that the entity fully recovers is not a cost of the asset: it is non-refundable taxes that enter the purchase price (IAS 38, para. 27). For Orbis, the recovered VAT stays outside the software's cost. Rule to remember: a recovered tax stays out of cost, a non-refundable tax goes in.","es":""}},{"id":"B","text":{"fr":"","en":"Non-refundable import duties are added to cost.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The list price is used without taking the trade discount into account.","es":""},"correct":false,"feedback":{"fr":"","en":"Using the list price without the trade discount overstates the cost: the purchase price is stated after deducting trade discounts and rebates (IAS 38, para. 27). For Orbis, the discount granted by the vendor therefore reduces the list price. Rule to remember: cost starts from the price net of discount.","es":""}},{"id":"D","text":{"fr":"","en":"The fees of the contractor who installs the software are added to cost.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The cost of tests checking that the software works properly is added to cost.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000157","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000301","tested_point":"VG.IAS38.000301","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §27","IAS 38 §28"],"exercise":{"prompt":{"fr":"","en":"Velora buys from a foreign vendor complaints-management software invoiced at {invoice_price}, on which it obtains a rebate of {rebate}. It pays non-refundable import duties of {import_duties} and VAT of {recoverable_vat}, which it fully recovers. The salaries of Velora's IT staff assigned to configuring the software, before it goes live, amount to {staff_costs}. What is the cost of the intangible asset?","es":""},"explanation":{"fr":"","en":"The purchase price is measured after rebates and includes non-refundable import duties (IAS 38, para. 27); employee benefits arising from bringing the asset to working condition are added (IAS 38, para. 28). Cost = 80,000 − 4,000 + 2,400 + 6,000 = 84,400. Recoverable VAT is excluded. Approach: start from the invoiced price, deduct the rebate, add the non-refundable duties and the internal configuration salaries, and leave out the recoverable VAT. Trap: adding the recovered VAT or forgetting the rebate. Rule to remember: cost includes the net purchase price, non-refundable duties and taxes included, and directly attributable costs (IAS 38, paras. 27 and 28).","es":""},"common_error":{"fr":"","en":"Adding the recoverable VAT (99,600).","es":""},"format":"CALCULATION","placeholders":[{"id":"invoice_price","value":"80000","unit":"EUR"},{"id":"rebate","value":"4000","unit":"EUR"},{"id":"import_duties","value":"2400","unit":"EUR"},{"id":"recoverable_vat","value":"15200","unit":"EUR"},{"id":"staff_costs","value":"6000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Invoiced price of the software","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Rebate obtained","es":""},"value":"4000","unit":"EUR"},{"label":{"fr":"","en":"Non-refundable import duties","es":""},"value":"2400","unit":"EUR"},{"label":{"fr":"","en":"Recoverable VAT","es":""},"value":"15200","unit":"EUR"},{"label":{"fr":"","en":"Internal configuration salaries before going live","es":""},"value":"6000","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost of the intangible asset","es":""},"answer":84400,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTANGIBLE_COST","meaning":{"fr":"","en":"Cost of the intangible asset","es":""},"expression":"a - b + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Invoiced price of the software","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rebate obtained","es":""},"value":4000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Non-refundable import duties","es":""},"value":2400,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Internal configuration salaries before going live","es":""},"value":6000,"unit":"EUR"}],"result":84400,"unit":"EUR"}],"rationale":{"fr":"","en":"cost includes the net purchase price, non-refundable duties and taxes included, and directly attributable costs (IAS 38, paras. 27 and 28).","es":""},"references":["REF.IAS38.27","REF.IAS38.28"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000158","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000301","tested_point":"VG.IAS38.000301","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §27","IAS 38 §28"],"exercise":{"prompt":{"fr":"","en":"The farming cooperative Terralis acquires a licence for a plot-mapping tool at a list price of {list_price}, less a trade discount of {trade_discount}. It bears a non-refundable tax of {non_refundable_tax} and VAT of {recoverable_vat}, which it deducts. An independent geomatics specialist charges {testing_fees} to check that the tool renders the data correctly before it is used. Determine the initial cost of the licence.","es":""},"explanation":{"fr":"","en":"Purchase price after discount and non-refundable taxes (IAS 38, para. 27), plus fees for testing proper functioning (IAS 38, para. 28): 150,000 − 7,500 (5% discount) + 3,000 + 5,500 = 151,000. Deductible VAT is not part of cost. Approach: first convert the 5% discount into an amount, then add the non-refundable tax and the verification fees paid to the third party, leaving out the deductible VAT. Trap: treating the percentage as an amount or adding the deductible VAT. Rule to remember: cost starts from the price after trade discount, non-refundable taxes included, and is increased by testing costs (IAS 38, paras. 27 and 28).","es":""},"common_error":{"fr":"","en":"Adding the deductible VAT (179,500).","es":""},"format":"CALCULATION","placeholders":[{"id":"list_price","value":"150000","unit":"EUR"},{"id":"trade_discount","value":"5","unit":"PERCENT"},{"id":"non_refundable_tax","value":"3000","unit":"EUR"},{"id":"recoverable_vat","value":"28500","unit":"EUR"},{"id":"testing_fees","value":"5500","unit":"EUR"}],"data":[{"label":{"fr":"","en":"List price of the licence","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Trade discount","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Non-refundable tax","es":""},"value":"3000","unit":"EUR"},{"label":{"fr":"","en":"Deductible VAT","es":""},"value":"28500","unit":"EUR"},{"label":{"fr":"","en":"Fees for checking proper functioning","es":""},"value":"5500","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Initial cost of the licence","es":""},"answer":151000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000161","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS","IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000161","tested_point":"QST.IAS38.000161","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §27","IAS 38 §28","IAS 38 §29","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"The veterinary clinic network Vetalia acquires patient-records software for 120,000. Before going live, it incurs 9,000 of consultants' fees to adapt the interfaces, 3,000 of testing and 6,000 of salaries of its internal project team spent on configuration. The IT department also allocates 4,000 of general overheads to the project, and training the vets costs 5,000. What is the cost of the intangible asset?","es":""},"explanation":{"fr":"","en":"Cost comprises the purchase price and directly attributable costs (IAS 38, para. 27), including fees, testing and salaries linked to bringing the asset to working condition (IAS 38, para. 28): 120,000 + 9,000 + 3,000 + 6,000 = 138,000. The allocated general overheads are excluded (IAS 38, para. 29) and staff training is recognised as an expense (IAS 38, para. 69).","es":""},"common_error":{"fr":"","en":"Including staff training or allocated overheads in the software's cost, or omitting internal configuration salaries.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"143,000","es":""},"correct":false,"feedback":{"fr":"","en":"143,000 includes the 5,000 of training for the veterinarians, which is recognised as an expense and is not part of the cost (IAS 38, paras. 29 and 69). The cost to use is 120,000 + 9,000 + 3,000 + 6,000 = 138,000. In Vetalia's financial statements, the training therefore weighs on profit or loss for the year. Rule to remember: staff training is not a cost of the asset.","es":""}},{"id":"B","text":{"fr":"","en":"138,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"142,000","es":""},"correct":false,"feedback":{"fr":"","en":"142,000 includes the 4,000 of overheads allocated by the IT department: administrative and general overheads are not part of the cost, even when allocated to the project (IAS 38, para. 29). The cost is 138,000 (IAS 38, paras. 27 and 28). Rule to remember: allocating overheads to a project does not make them directly attributable.","es":""}},{"id":"D","text":{"fr":"","en":"132,000","es":""},"correct":false,"feedback":{"fr":"","en":"132,000 leaves out the 6,000 of salaries of the internal project team devoted to configuration: they are employee benefits related to bringing the asset to working condition, hence directly attributable (IAS 38, para. 28). The correct cost is 120,000 + 9,000 + 3,000 + 6,000 = 138,000. Rule to remember: internal salaries directly related to bringing the asset to working condition are included in cost.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000162","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000162","tested_point":"QST.IAS38.000162","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"excluded-costs"},"references":["IAS 38 §29"],"exercise":{"prompt":{"fr":"","en":"True or false? Advertising costs incurred to announce a new service, made possible by a licence that the entity has just acquired, are included in the cost of that licence.","es":""},"explanation":{"fr":"","en":"False. The costs of introducing a new product or service, including advertising and promotional activities, are not part of the cost of an intangible asset (IAS 38, para. 29). They are recognised as an expense. Approach: ask whether the expenditure prepares the asset or serves to market the service. Trap: confusing launch advertising with a cost of bringing the asset to working condition. Rule to remember: the costs of launching a new product or service, including advertising and promotion, are not part of cost (IAS 38, para. 29).","es":""},"common_error":{"fr":"","en":"Including in a licence's cost the advertising done to launch the service it makes possible.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000163","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000163","tested_point":"QST.IAS38.000163","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"excluded-costs"},"references":["IAS 38 §30"],"exercise":{"prompt":{"fr":"","en":"True or false? Acquired software is capable of operating as intended in March, but the entity waits until June to use it. The hosting costs paid from April to June during this wait are included in the cost of the software.","es":""},"explanation":{"fr":"","en":"False. Approach: identify the date on which the software is capable of operating as intended by management (March), then sort costs according to whether they come before or after that date. Trap: confusing that date with the date of first use (June). Capitalisation stops in March; the hosting costs from April to June, incurred while the asset is ready but not yet in use, are expenses (IAS 38, para. 30). Rule to remember: capitalisation of costs stops when the asset is capable of operating as intended, even if it is not yet in use (IAS 38, para. 30).","es":""},"common_error":{"fr":"","en":"Treating the date of first use (June) as the end of capitalisation.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000164","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000164","tested_point":"QST.IAS38.000164","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §29","IAS 38 §28","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"A travel agency acquires an online booking engine. Which of the following items of expenditure must be expensed rather than included in cost?","es":""},"explanation":{"fr":"","en":"Staff training creates no asset and is recognised as an expense: it is not part of the cost of the intangible asset (IAS 38, paras. 29(b) and 69). Tests of proper functioning, professional fees and employee benefits linked to bringing the asset to working condition are, by contrast, directly attributable costs (IAS 38, para. 28).","es":""},"common_error":{"fr":"","en":"Including the training of advisers in the cost of the booking engine as if it were a cost of preparing the asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The tests carried out to make sure the engine calculates fares correctly before going online","es":""},"correct":false,"feedback":{"fr":"","en":"The tests that check the engine calculates fares correctly before it goes live are costs of testing whether the asset is functioning properly: they are directly attributable and included in cost (IAS 38, para. 28). Expensing them confuses them with training, which creates no asset (IAS 38, paras. 29 and 69). Rule to remember: costs of testing proper functioning form part of cost, staff training does not (IAS 38, paras. 28 and 29).","es":""}},{"id":"B","text":{"fr":"","en":"The fees of the contractor who connects the engine to the airlines' systems","es":""},"correct":false,"feedback":{"fr":"","en":"The fees of the provider who connects the engine to the airlines' systems are incurred to bring the asset to working condition: they are directly attributable professional fees, included in cost (IAS 38, para. 28). Expensing them wrongly treats them like the training of advisers, which creates no asset (IAS 38, paras. 29 and 69). Rule to remember: fees needed to bring the asset to working condition are included in cost (IAS 38, para. 28).","es":""}},{"id":"C","text":{"fr":"","en":"The training of the agency's travel advisers","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The salaries of the in-house developers who configure the engine before it goes online","es":""},"correct":false,"feedback":{"fr":"","en":"The salaries of the in-house developers who configure the engine before it goes live are employee benefits linked to bringing the asset to working condition: they are directly attributable and included in cost (IAS 38, para. 28). Being salaries rather than an external invoice does not turn them into expenses; the expense is the training of advisers (IAS 38, paras. 29 and 69). Rule to remember: employee benefits linked to bringing the asset to working condition are directly attributable (IAS 38, para. 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000165","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000165","tested_point":"QST.IAS38.000165","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"excluded-costs"},"references":["IAS 38 §30"],"exercise":{"prompt":{"fr":"","en":"When does recognition of costs in the carrying amount of a separately acquired intangible asset cease?","es":""},"explanation":{"fr":"","en":"Recognition of costs ceases as soon as the asset is capable of operating in the manner intended by management. Costs incurred afterwards, including while an asset that is ready has not yet been brought into use, and initial operating losses are not capitalised (IAS 38, para. 30).","es":""},"common_error":{"fr":"","en":"Making the end of capitalisation coincide with the first use of the asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On the date on which the entity's operational departments first actually use the asset","es":""},"correct":false,"feedback":{"fr":"","en":"Waiting for first actual use means capitalising costs incurred while the asset is already ready: an asset may sit unused for weeks, and the costs of that wait (hosting, for example) are not part of cost (IAS 38, para. 30). The benchmark is the asset's ability to operate as intended by management, not the date it is used. Rule to remember: capitalisation stops when the asset is capable of operating as intended, even if it is not yet in use (IAS 38, para. 30).","es":""}},{"id":"B","text":{"fr":"","en":"When the asset is capable of operating in the manner intended by management","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"When the activity using the asset makes its first profits","es":""},"correct":false,"feedback":{"fr":"","en":"First profits depend on demand and on the business, not on the condition of the asset. Waiting until the business becomes profitable would bring initial operating losses into cost, whereas they are not capitalised and are expensed (IAS 38, para. 30). Rule to remember: profitability of the business is not the benchmark; the benchmark is the asset's ability to operate as intended (IAS 38, para. 30).","es":""}},{"id":"D","text":{"fr":"","en":"At the first reporting date following the acquisition","es":""},"correct":false,"feedback":{"fr":"","en":"The reporting date is a date for presenting the accounts, unrelated to the condition of the asset. If the asset is ready in March and the year-end is in December, the costs from April to December would wrongly be capitalised; they are excluded as soon as the asset is capable of operating as intended (IAS 38, para. 30). Rule to remember: the end of capitalisation depends on the condition of the asset, not on the reporting calendar (IAS 38, para. 30).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000166","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000166","tested_point":"QST.IAS38.000166","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §29","IAS 38 §30","IAS 38 §28"],"exercise":{"prompt":{"fr":"","en":"A chain of gyms, Fitora, acquires a class-booking app and extends it to a new city. Which of the following items of expenditure must be expensed?","es":""},"explanation":{"fr":"","en":"The following are not part of cost: promoting a new service, training staff for an activity in a new location (IAS 38, para. 29) and initial operating losses (IAS 38, para. 30). Tests of proper functioning and integration fees before going live are directly attributable costs (IAS 38, para. 28).","es":""},"common_error":{"fr":"","en":"Capitalising the application's promotional campaign or the coaches' training as if they were costs of preparing the asset.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Load tests carried out before going live to check that the app supports simultaneous connections","es":""},"correct":false,"feedback":{"fr":"","en":"The load tests carried out before the go-live check that the application works as intended: they are costs of testing proper functioning, directly attributable and included in cost (IAS 38, para. 28). Classing them as expenses confuses them with promotion or training, which are not part of cost (IAS 38, para. 29). Rule to remember: costs of testing proper functioning before go-live form part of cost (IAS 38, para. 28).","es":""}},{"id":"B","text":{"fr":"","en":"The promotional campaign announcing the app to members","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Training the coaches of the new club to use the app","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The operating losses of the first months, while members adopt the app","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The fees of the contractor who integrates the app with the billing system before it goes live","es":""},"correct":false,"feedback":{"fr":"","en":"The fees of the provider who integrates the application with the billing system before go-live prepare the asset for use: they are directly attributable professional fees, hence capitalised (IAS 38, para. 28). They come before the date the asset is ready, unlike the operating losses of the first months, which are excluded (IAS 38, para. 30). Rule to remember: fees incurred to prepare the asset before it is ready are capitalised (IAS 38, paras. 28 and 30).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000167","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000303","tested_point":"VG.IAS38.000303","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §30","IAS 38 §29","IAS 38 §28"],"exercise":{"prompt":{"fr":"","en":"The haulier Navexa buys route-planning software for {purchase_price}. A consultant configures it for {configuration_fees} and the software is capable of operating as intended on 1 March 20X1. However, Navexa only brings it into use on 1 May 20X1 and pays {idle_hosting} of hosting for the period in between. Management control also allocates {allocated_overheads} of general overheads to the project. What is the cost of the intangible asset?","es":""},"explanation":{"fr":"","en":"Approach: start from the purchase price (90,000), add the costs directly attributable to bringing the asset to working condition, then leave out the rest. The configuration fees (8,000) are directly attributable (IAS 38, para. 28): 90,000 + 8,000 = 98,000. Trap: the hosting paid between 1 March (software ready) and 1 May (go-live), i.e. 2,700, and the allocated overheads, i.e. 3,500, are excluded (IAS 38, paras. 29 and 30). Rule to remember: cost comprises the purchase price and the directly attributable costs up to the point the asset can operate as intended, but not waiting costs or general overheads (IAS 38, paras. 28, 29 and 30).","es":""},"common_error":{"fr":"","en":"Capitalising the hosting for the waiting period (100,700).","es":""},"format":"CALCULATION","placeholders":[{"id":"purchase_price","value":"90000","unit":"EUR"},{"id":"configuration_fees","value":"8000","unit":"EUR"},{"id":"idle_hosting","value":"2700","unit":"EUR"},{"id":"allocated_overheads","value":"3500","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Purchase price of the software","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Configuration fees","es":""},"value":"8000","unit":"EUR"},{"label":{"fr":"","en":"Hosting between readiness and first use","es":""},"value":"2700","unit":"EUR"},{"label":{"fr":"","en":"Allocated general overheads","es":""},"value":"3500","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost of the intangible asset","es":""},"answer":98000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTANGIBLE_COST","meaning":{"fr":"","en":"Cost of the intangible asset","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Purchase price of the software","es":""},"value":90000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Configuration fees","es":""},"value":8000,"unit":"EUR"}],"result":98000,"unit":"EUR","rationale":{"fr":"","en":"The configuration fees (8,000) are directly attributable (IAS 38, para. 28): 90,000 + 8,000 = 98,000.","es":""}}],"rationale":{"fr":"","en":"cost comprises the purchase price and the directly attributable costs up to the point the asset can operate as intended, but not waiting costs or general overheads (IAS 38, paras. 28, 29 and 30).","es":""},"references":["REF.IAS38.30","REF.IAS38.29","REF.IAS38.28"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000168","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000303","tested_point":"VG.IAS38.000303","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §30","IAS 38 §29","IAS 38 §28"],"exercise":{"prompt":{"fr":"","en":"The news website Quotidia acquires a licence for an editorial search engine for {licence_price}. Before the engine is operational, it bears {test_fees} of acceptance-testing fees and {internal_salaries} of salaries of its engineers in charge of installation. Once the engine is operational, the audience is slow to come and the business records {early_losses} of start-up losses; Quotidia also spends {new_office_training} on training the team of its new regional newsroom. Calculate the cost of the licence.","es":""},"explanation":{"fr":"","en":"Approach: licence price 210,000, plus the directly attributable costs incurred before the engine is operational, i.e. 12,000 of acceptance-test fees and 18,000 of installation salaries (IAS 38, para. 28): 210,000 + 12,000 + 18,000 = 240,000. Trap: the start-up losses (25,000) follow the point at which the asset is ready, and the training of the new regional newsroom (7,000) relates to an activity in a new location; neither is part of cost (IAS 38, paras. 29 and 30). Effect on the financial statements: these 32,000 are expenses in profit or loss and do not increase the carrying amount of the licence. Rule to remember: cost comprises the price and the directly attributable costs incurred before the date the asset is ready (IAS 38, paras. 28 and 30).","es":""},"common_error":{"fr":"","en":"Adding the start-up losses (265,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"licence_price","value":"210000","unit":"EUR"},{"id":"test_fees","value":"12000","unit":"EUR"},{"id":"internal_salaries","value":"18000","unit":"EUR"},{"id":"early_losses","value":"25000","unit":"EUR"},{"id":"new_office_training","value":"7000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Licence price","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Acceptance-testing fees before readiness","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Installation salaries before readiness","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Initial operating losses","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Training of the new newsroom","es":""},"value":"7000","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost of the licence","es":""},"answer":240000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTANGIBLE_COST","meaning":{"fr":"","en":"Cost of the licence","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Licence price","es":""},"value":210000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Acceptance-testing fees before readiness","es":""},"value":12000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Installation salaries before readiness","es":""},"value":18000,"unit":"EUR"}],"result":240000,"unit":"EUR","rationale":{"fr":"","en":"Approach: licence price 210,000, plus the directly attributable costs incurred before the engine is operational, i.e. 12,000 of acceptance-test fees and 18,000 of installation salaries (IAS 38, para. 28): 210,000 + 12,000 + 18,000 = 240,000.","es":""}}],"rationale":{"fr":"","en":"cost comprises the price and the directly attributable costs incurred before the date the asset is ready (IAS 38, paras. 28 and 30).","es":""},"references":["REF.IAS38.30","REF.IAS38.29","REF.IAS38.28"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000169","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"ANALYSIS","context":"V1_QST.IAS38.000169","tested_point":"QST.IAS38.000169","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §29","IAS 38 §30","IAS 38 §27"],"exercise":{"prompt":{"fr":"","en":"Corvane's internal auditor's working paper on the acquisition of payroll software contains the following conclusions. Which one is wrong?","es":""},"explanation":{"fr":"","en":"Conclusion B is wrong: administration and other general overhead costs are not part of the cost of an intangible asset (IAS 38, para. 29). The other conclusions are right: testing is a directly attributable cost, only non-refundable taxes enter the purchase price (IAS 38, para. 27) and initial operating losses are excluded (IAS 38, para. 30).","es":""},"common_error":{"fr":"","en":"Including in the cost of the asset a share of the accounting department's administrative costs.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fees of the contractor in charge of testing before going live were included in cost: correct treatment.","es":""},"correct":false,"feedback":{"fr":"","en":"This internal-audit conclusion is correct, so it contains no error: the fees of the pre-go-live tests are costs of testing proper functioning, directly attributable and capitalised (IAS 38, para. 28). The error lies in capitalising the administrative costs allocated to the project, which are excluded from cost (IAS 38, para. 29). Rule to remember: tests before go-live are included in cost, general overheads are not (IAS 38, paras. 28 and 29).","es":""}},{"id":"B","text":{"fr":"","en":"The administrative costs of the accounting department allocated to the project were included in cost: correct treatment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The VAT invoiced, which was fully recovered, was excluded from cost: correct treatment.","es":""},"correct":false,"feedback":{"fr":"","en":"This conclusion is correct: fully recovered VAT is not a cost of the asset, because the purchase price comprises import duties and non-refundable taxes, after trade discounts and rebates (IAS 38, para. 27). It cannot therefore be the error in the file, which is the capitalisation of administrative costs (IAS 38, para. 29). Rule to remember: non-refundable taxes form part of the purchase price, recoverable VAT does not (IAS 38, para. 27).","es":""}},{"id":"D","text":{"fr":"","en":"The operating loss recorded in the first month after going live was expensed: correct treatment.","es":""},"correct":false,"feedback":{"fr":"","en":"This conclusion is correct: the operating loss of the first month after go-live is an initial operating loss, excluded from cost and expensed (IAS 38, para. 30). It is therefore not the error in the file, which concerns the administrative costs included in cost (IAS 38, para. 29). Rule to remember: initial operating losses are not capitalised (IAS 38, para. 30).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000170","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"ANALYSIS","context":"V1_QST.IAS38.000170","tested_point":"QST.IAS38.000170","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §30","IAS 38 §27","IAS 38 §28"],"exercise":{"prompt":{"fr":"","en":"Santeo acquired a teleconsultation platform, capable of operating as intended on 30 June 20X1 but launched to patients on 1 September 20X1. Its schedule of capitalised costs contains the following lines. Which one is an error?","es":""},"explanation":{"fr":"","en":"Line C is an error: capitalisation ceases when the asset is capable of operating as intended, and costs incurred while an asset that is ready has not yet been brought into use are excluded (IAS 38, para. 30). The July and August maintenance is an expense. The price net of discount, the non-refundable tax (IAS 38, para. 27) and the tests before readiness (IAS 38, para. 28) are correctly capitalised.","es":""},"common_error":{"fr":"","en":"Capitalising costs incurred between the date the platform is ready (30 June) and its launch (1 September).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Purchase price of the platform, net of the trade discount obtained","es":""},"correct":false,"feedback":{"fr":"","en":"This line is correct: the purchase price is measured net of trade discounts and rebates, in line with the make-up of cost (IAS 38, para. 27). It cannot therefore be the error in the table. The error is the maintenance for July and August, incurred when the platform has been ready since 30 June but not yet launched (IAS 38, para. 30). Rule to remember: the purchase price is measured after trade discounts and rebates (IAS 38, para. 27).","es":""}},{"id":"B","text":{"fr":"","en":"Fees for security tests carried out in June, before the platform was ready","es":""},"correct":false,"feedback":{"fr":"","en":"This line is correct: the security tests of June come before the date the platform is capable of operating as intended, 30 June; they are costs of testing proper functioning, hence capitalised (IAS 38, para. 28). The error is the maintenance for July and August, after that date (IAS 38, para. 30). Rule to remember: testing costs before the date the asset is ready are capitalised, those after it are not (IAS 38, paras. 28 and 30).","es":""}},{"id":"C","text":{"fr":"","en":"Maintenance of the platform in July and August","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Non-refundable tax paid on purchase","es":""},"correct":false,"feedback":{"fr":"","en":"This line is correct: non-refundable taxes paid on purchase form part of the purchase price (IAS 38, para. 27). It is therefore not the error in the table, which is the capitalisation of the maintenance for July and August, incurred after 30 June when the platform was ready but not yet launched (IAS 38, para. 30). Rule to remember: non-refundable taxes are included in the purchase price, costs after the asset can operate as intended are not part of cost (IAS 38, paras. 27 and 30).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000171","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.EXCLUDED_COSTS","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000171","tested_point":"QST.IAS38.000171","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"cost-components"},"references":["IAS 38 §30","IAS 38 §29","IAS 38 §28","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"The ferry company Marivo acquires an online ticketing system for 300,000 and pays 20,000 for testing before it is capable of operating as intended, on 1 April 20X1. After that date, it incurs 15,000 of training for port agents, 30,000 for a launch campaign and 8,000 of fees to adjust screens while the system already operates as intended; the online business also suffers 10,000 of start-up losses. What is the initial cost of the system?","es":""},"explanation":{"fr":"","en":"Cost comprises the price and the tests of proper functioning (IAS 38, para. 28): 300,000 + 20,000 = 320,000. Capitalisation ceases on 1 April 20X1, the date on which the system is capable of operating as intended; later adjustments and start-up losses are excluded from the initial cost (IAS 38, para. 30). The launch campaign is not part of cost (IAS 38, para. 29) and training is recognised as an expense (IAS 38, para. 69).","es":""},"common_error":{"fr":"","en":"Adding the adjustment fees incurred after 1 April 20X1 to the cost of the system.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"300,000","es":""},"correct":false,"feedback":{"fr":"","en":"300,000 is the purchase price without the tests: this answer forgets the 20,000 of tests carried out before 1 April 20X1, which are directly attributable costs of testing proper functioning (IAS 38, para. 28). The initial cost is 300,000 + 20,000 = 320,000. Rule to remember: cost comprises the price and the directly attributable costs incurred up to the point the asset can operate as intended (IAS 38, paras. 27, 28 and 30).","es":""}},{"id":"B","text":{"fr":"","en":"328,000","es":""},"correct":false,"feedback":{"fr":"","en":"328,000 adds 8,000 of screen-adjustment fees incurred when the system is already operating as intended. After 1 April 20X1 capitalisation has stopped: these fees are expenses and are not part of the initial cost (IAS 38, para. 30). The cost stays at 300,000 + 20,000 = 320,000. Rule to remember: costs incurred after the date the asset is ready are excluded from cost (IAS 38, para. 30).","es":""}},{"id":"C","text":{"fr":"","en":"320,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"383,000","es":""},"correct":false,"feedback":{"fr":"","en":"383,000 adds up every amount mentioned. Yet the training of the port agents (15,000) and the launch campaign (30,000) are not part of cost (IAS 38, paras. 29 and 69), nor are the later 8,000 adjustments or the 10,000 of start-up losses (IAS 38, para. 30). These 63,000 are charged to profit or loss. Rule to remember: training, launch costs, later costs and start-up losses are expenses, not part of the cost of the asset (IAS 38, paras. 29 and 30).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000172","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.DEFERRED_PAYMENT"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000304","tested_point":"VG.IAS38.000304","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"deferred-payment"},"references":["IAS 38 §32"],"exercise":{"prompt":{"fr":"","en":"Kestrel acquires a process patent. The seller, whose usual settlement terms are 60 days, offers either a cash payment of {cash_price} on signing or a single payment of {deferred_amount} in three years. Kestrel opts for payment in three years. Determine the cost of the patent and the total interest expense to be recognised over the period of credit.","es":""},"explanation":{"fr":"","en":"Approach: the single payment in three years goes far beyond the seller's usual 60 days; the cost of the patent is therefore the cash price equivalent, 450,000, and the difference from the total payments, 520,000 − 450,000 = 70,000, is interest expense over the credit period (IAS 38, para. 32). Trap: using 520,000 as the cost or adding the 70,000 to the patent; the difference remains interest expense unless it is included in the cost of a qualifying asset under IAS 23, which a patent usable from acquisition is not (IAS 38, para. 32). Rule to remember: when payment is deferred beyond normal credit terms, cost is the cash price equivalent and the difference is interest expense (IAS 38, para. 32).","es":""},"common_error":{"fr":"","en":"Using the nominal amount of 520,000 as the cost of the patent.","es":""},"format":"CALCULATION","placeholders":[{"id":"cash_price","value":"450000","unit":"EUR"},{"id":"deferred_amount","value":"520000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cash price offered","es":""},"value":"450000","unit":"EUR"},{"label":{"fr":"","en":"Single amount payable in three years","es":""},"value":"520000","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost of the patent","es":""},"answer":450000,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_INTEREST","label":{"fr":"","en":"Total interest expense over the period of credit","es":""},"answer":70000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_INTEREST","meaning":{"fr":"","en":"Total interest expense over the period of credit","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Single amount payable in three years","es":""},"value":520000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cash price offered","es":""},"value":450000,"unit":"EUR"}],"result":70000,"unit":"EUR","rationale":{"fr":"","en":"the cost of the patent is therefore the cash price equivalent, 450,000, and the difference from the total payments, 520,000 − 450,000 = 70,000, is interest expense over the credit period (IAS 38, para. 32).","es":""}}],"rationale":{"fr":"","en":"when payment is deferred beyond normal credit terms, cost is the cash price equivalent and the difference is interest expense (IAS 38, para. 32).","es":""},"references":["REF.IAS38.32"]}},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000173","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.DEFERRED_PAYMENT"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000304","tested_point":"VG.IAS38.000304","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"deferred-payment"},"references":["IAS 38 §32"],"exercise":{"prompt":{"fr":"","en":"The games publisher Pixelune buys the rights to a character licence from a studio, which agrees to be paid in a single instalment, {deferred_payment}, after two years, whereas its sales are normally settled at 30 days. No cash price is stated; the two-year discount factor, at the rate of equivalent financing, is {discount_factor}. Calculate the cost of the licence and the total interest to be spread over the period of credit.","es":""},"explanation":{"fr":"","en":"Approach: no cash price is stated, so it is obtained by discounting the single payment, due in two years instead of 30 days: 400,000 × 0.89 = 356,000, which is the cost of the licence; the difference, 400,000 − 356,000 = 44,000, is the interest expense to be spread over the credit period (IAS 38, para. 32). Trap: using the nominal payment of 400,000 as the cost, or expensing the 44,000 on acquisition. Rule to remember: cost is the cash price equivalent, here the discounted value of the deferred payment, and the difference is interest expense spread over the credit period, unless the asset is a qualifying asset under IAS 23 (IAS 38, para. 32).","es":""},"common_error":{"fr":"","en":"Using the nominal payment of 400,000 as cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"deferred_payment","value":"400000","unit":"EUR"},{"id":"discount_factor","value":"0.89","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Single payment in two years","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Two-year discount factor","es":""},"value":"0.89","unit":"UNITS"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost of the licence (cash price equivalent)","es":""},"answer":356000,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_INTEREST","label":{"fr":"","en":"Total interest over the period of credit","es":""},"answer":44000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTANGIBLE_COST","meaning":{"fr":"","en":"Cost of the licence (cash price equivalent)","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Single payment in two years","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Two-year discount factor","es":""},"value":0.89,"unit":"UNITS"}],"result":356000,"unit":"EUR"},{"step":"TOTAL_INTEREST","meaning":{"fr":"","en":"Total interest over the period of credit","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Single payment in two years","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cost of the licence (cash price equivalent)","es":""},"value":356000,"unit":"EUR"}],"result":44000,"unit":"EUR","rationale":{"fr":"","en":"the difference, 400,000 − 356,000 = 44,000, is the interest expense to be spread over the credit period (IAS 38, para. 32).","es":""}}],"rationale":{"fr":"","en":"cost is the cash price equivalent, here the discounted value of the deferred payment, and the difference is interest expense spread over the credit period, unless the asset is a qualifying asset under IAS 23 (IAS 38, para. 32).","es":""},"references":["REF.IAS38.32"]}},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000174","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.DEFERRED_PAYMENT"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000174","tested_point":"QST.IAS38.000174","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"deferred-payment"},"references":["IAS 38 §32"],"exercise":{"prompt":{"fr":"","en":"On 1 January 20X1, Ondalis acquires the right to exploit a music catalogue, payable in a single instalment, {final_payment}, on 31 December 20X2, whereas the seller usually grants 45 days. The cash price equivalent is {cash_price_equivalent}. Ondalis spreads the difference over the period of credit by applying the implicit rate of {implicit_rate} to the liability outstanding at the start of each year. Determine the cost of the right and the interest expense for 20X1 and for 20X2.","es":""},"explanation":{"fr":"","en":"Approach: the cost of the right is the cash price equivalent, 200,000; the difference from the final payment, 220,500 − 200,000 = 20,500, is interest expense over the credit period (IAS 38, para. 32). Case convention: implicit rate of 5% applied to the liability at the start of each year. 20X1: 200,000 × 5% = 10,000 (liability 210,000); 20X2: 210,000 × 5% = 10,500 (liability 220,500, the amount paid). Trap: spreading the difference in halves (10,250 a year) instead of applying the rate to the outstanding liability. Effect: profit or loss bears 10,000 in 20X1 and then 10,500 in 20X2. Rule to remember: cost equals the cash price equivalent, the difference is interest expense, unless the asset is a qualifying asset under IAS 23 (IAS 38, para. 32).","es":""},"common_error":{"fr":"","en":"Using 220,500 as the cost of the right.","es":""},"format":"CALCULATION","placeholders":[{"id":"cash_price_equivalent","value":"200000","unit":"EUR"},{"id":"final_payment","value":"220500","unit":"EUR"},{"id":"implicit_rate","value":"5","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Cash price equivalent","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Single payment on 31 December 20X2","es":""},"value":"220500","unit":"EUR"},{"label":{"fr":"","en":"Implicit rate","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost of the exploitation right","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"INTEREST_YEAR_1","label":{"fr":"","en":"Interest expense 20X1","es":""},"answer":10000,"tolerance":0,"unit":"EUR"},{"id":"INTEREST_YEAR_2","label":{"fr":"","en":"Interest expense 20X2","es":""},"answer":10500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTEREST_YEAR_1","meaning":{"fr":"","en":"Interest expense 20X1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cash price equivalent","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Implicit rate","es":""},"value":5,"unit":"PERCENT"}],"result":10000,"unit":"EUR"}],"rationale":{"fr":"","en":"cost equals the cash price equivalent, the difference is interest expense, unless the asset is a qualifying asset under IAS 23 (IAS 38, para. 32).","es":""},"references":["REF.IAS38.32"]}},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000177","standard_id":"IAS38","concept_ids":["IAS38.SEPARATE_ACQUISITION.DEFERRED_PAYMENT"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000177","tested_point":"QST.IAS38.000177","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000007","section_id":"deferred-payment"},"references":["IAS 38 §32"],"exercise":{"prompt":{"fr":"","en":"The Solvane group acquires a customer list from a competitor. The contract sets a price of 1,000,000 payable in four years; the seller would have accepted 820,000 in cash, and its usual settlement terms are 30 days. The finance director wants to recognise the asset at 1,000,000, on the grounds that this is the contractual price. Which treatment should be adopted?","es":""},"explanation":{"fr":"","en":"Payment is deferred beyond normal credit terms: the cost of the customer list is the cash price equivalent, 820,000, and the difference of 1,000,000 − 820,000 = 180,000 is recognised as interest expense over the period of credit (IAS 38, para. 32). The nominal contractual price includes a financing component that is not part of the cost of the asset. The difference would be capitalised only if the asset were a qualifying asset under IAS 23; that is not the case here, as the asset is ready for use on acquisition (IAS 38, para. 32).","es":""},"common_error":{"fr":"","en":"Using the contractual price of 1,000,000 as the cost of the customer list.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Asset of 1,000,000, since that is the price stated in the contract","es":""},"correct":false,"feedback":{"fr":"","en":"Using 1,000,000 because it is the contract price ignores that payment is deferred by four years, far beyond the seller's usual 30 days. The nominal price contains a financing component: cost is the cash price equivalent, 820,000 (IAS 38, para. 32). Recording 1,000,000 would overstate the asset by 180,000. Rule to remember: the cost of an asset with deferred payment is the cash price equivalent, not the nominal price (IAS 38, para. 32).","es":""}},{"id":"B","text":{"fr":"","en":"Asset of 820,000 and an expense of 180,000 recognised immediately on acquisition","es":""},"correct":false,"feedback":{"fr":"","en":"This answer correctly records the asset at 820,000 but expenses the 180,000 on acquisition. The difference from the nominal price is interest expense recognised over the four-year credit period, not an immediate loss (IAS 38, para. 32): it affects each year of the credit period. Rule to remember: the difference between the nominal price and the cash price equivalent is interest expense spread over the credit period (IAS 38, para. 32).","es":""}},{"id":"C","text":{"fr":"","en":"Asset of 820,000; 180,000 as interest expense over the period of credit","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Asset of 820,000, gradually increased by 180,000 over the period of credit","es":""},"correct":false,"feedback":{"fr":"","en":"Gradually increasing the asset by 180,000 amounts to capitalising the interest. The difference is interest expense, not an addition to cost: the customer list is usable from acquisition, so it is not a qualifying asset under IAS 23 (IAS 38, para. 32). The asset stays at 820,000 and the interest goes through profit or loss. Rule to remember: the difference on deferred payment is interest expense, except for a qualifying asset under IAS 23 (IAS 38, para. 32).","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000178","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.BUSINESS_COMBINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000178","tested_point":"QST.IAS38.000178","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000008","section_id":"business-combination-rule"},"references":["IAS 38 §33"],"exercise":{"prompt":{"fr":"","en":"In a business combination, the acquirer takes over a brand owned by the acquiree. How is the cost of this brand determined for the acquirer?","es":""},"explanation":{"fr":"","en":"When an intangible asset is acquired in a business combination, its cost is its fair value at the acquisition date (IAS 38, para. 33). Neither the carrying amount in the acquiree's books nor historical expenditure determines this cost.","es":""},"common_error":{"fr":"","en":"Using the carrying amount of the brand in the acquiree's books as the acquirer's cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its carrying amount in the acquiree's financial statements at the acquisition date","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount of the brand in the acquiree's books reflects that entity's history, not what the acquirer obtains at the date of the transaction. In a business combination, the cost of the intangible asset taken over is its fair value at the acquisition date (IAS 38, para. 33). Rule to remember: in a business combination, the cost of an acquired intangible asset is its fair value at the acquisition date (IAS 38, para. 33).","es":""}},{"id":"B","text":{"fr":"","en":"The cumulative expenditure incurred by the acquiree to create and promote the brand","es":""},"correct":false,"feedback":{"fr":"","en":"The accumulated spending by the acquiree to create and promote the brand measures what it spent in the past, not what the acquirer takes over. In a business combination, cost is the fair value at the acquisition date, which reflects market participants' expectations (IAS 38, para. 33). Rule to remember: cost in a business combination is fair value, not a history of expenditure (IAS 38, para. 33).","es":""}},{"id":"C","text":{"fr":"","en":"A share of the price paid, proportionate to the revenue generated under the brand","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not use an allocation of the price based on revenue earned under the brand. In a business combination, the brand taken over is measured at its fair value at the acquisition date, which already reflects market participants' expectations about future benefits (IAS 38, para. 33). Rule to remember: cost is fair value at the acquisition date (IAS 38, para. 33).","es":""}},{"id":"D","text":{"fr":"","en":"Its fair value at the acquisition date","es":""},"correct":true}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000179","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.BUSINESS_COMBINATION","IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000179","tested_point":"QST.IAS38.000179","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §34","IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"On obtaining control of Nexo, the Aldra group takes over an in-process research and development project, protected by patents filed by Nexo. Why does Aldra recognise this project separately from goodwill?","es":""},"explanation":{"fr":"","en":"The acquirer recognises an in-process research and development project of the acquiree separately from goodwill if the project meets the definition of an intangible asset (IAS 38, para. 34). The project is identifiable because it arises from legal rights, the patents, even regardless of its separability (IAS 38, para. 12). Nexo's treatment and the development-phase criteria are not the condition applied.","es":""},"common_error":{"fr":"","en":"Merging into goodwill an in-process R&D project that is nevertheless identifiable thanks to its patents.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because Nexo had already capitalised the project expenditure","es":""},"correct":false,"feedback":{"fr":"","en":"How the project was treated in the acquiree's books is not the condition for separate recognition: a project that Nexo had expensed is still recognised by the acquirer if it meets the definition of an intangible asset (IAS 38, para. 34). The test is that definition, including identifiability (IAS 38, para. 12). Rule to remember: the acquirer recognises separately from goodwill an in-process R&D project that meets the definition of an intangible asset (IAS 38, para. 34).","es":""}},{"id":"B","text":{"fr":"","en":"Because it meets the definition of an intangible asset: in particular, it is identifiable because it arises from legal rights","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Because Aldra demonstrated all the development-phase criteria at the acquisition date","es":""},"correct":false,"feedback":{"fr":"","en":"The criteria of the development phase are not the condition for a project taken over in a business combination: the condition is that the project meets the definition of an intangible asset (IAS 38, para. 34). Here it is identifiable, because it arises from legal rights, the patents (IAS 38, para. 12). Rule to remember: separate recognition of the acquired project rests on the definition of an intangible asset (IAS 38, para. 34).","es":""}},{"id":"D","text":{"fr":"","en":"Because, in a business combination, all the acquiree's research expenditure is capitalised","es":""},"correct":false,"feedback":{"fr":"","en":"This is not a general rule: in a business combination, the acquiree's research expenditure is not capitalised wholesale. It is the project which, because it meets the definition of an intangible asset, is recognised separately from goodwill (IAS 38, para. 34). Rule to remember: separate recognition depends on the definition, not on the nature of past expenditure (IAS 38, para. 34).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000180","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.BUSINESS_COMBINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000180","tested_point":"QST.IAS38.000180","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000008","section_id":"business-combination-rule"},"references":["IAS 38 §33","IAS 38 §34"],"exercise":{"prompt":{"fr":"","en":"The Ferval group acquires Lumis, which is carrying out an in-process research and development project that meets the definition of an intangible asset. Lumis has never recognised this project as an asset. Which statements are correct for Ferval's consolidated financial statements?","es":""},"explanation":{"fr":"","en":"The acquirer recognises an in-process research and development project of the acquiree separately from goodwill if the project meets the definition of an intangible asset (IAS 38, para. 34), and its cost is its fair value at the acquisition date (IAS 38, para. 33). The fact that Lumis expensed the expenditure has no bearing for Ferval.","es":""},"common_error":{"fr":"","en":"Merging into goodwill a project not recognised in the acquiree's balance sheet.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The project is subsumed in goodwill, since it does not appear on Lumis's balance sheet.","es":""},"correct":false,"feedback":{"fr":"","en":"An in-process R&D project that meets the definition of an intangible asset is recognised separately from goodwill (IAS 38, para. 34), whether or not it appears in Lumis's balance sheet. Reasoning from the acquiree's balance sheet wrongly leads to merging it into goodwill. Rule to remember: the absence of the project from the acquiree's balance sheet does not prevent its separate recognition by the acquirer (IAS 38, para. 34).","es":""}},{"id":"B","text":{"fr":"","en":"The project is recognised separately from goodwill.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The cost of the project is its fair value at the acquisition date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The cost of the project equals the cumulative expenditure incurred by Lumis.","es":""},"correct":false,"feedback":{"fr":"","en":"Lumis's historical expenditure does not determine the cost at Ferval: in a business combination, the cost of the project is its fair value at the acquisition date (IAS 38, para. 33). Since Lumis expensed that expenditure, its total does not even exist as an asset in its books. Rule to remember: cost equals fair value at the acquisition date, not the accumulated expenditure of the acquiree (IAS 38, para. 33).","es":""}},{"id":"E","text":{"fr":"","en":"The absence of the project from Lumis's balance sheet does not prevent its recognition by Ferval.","es":""},"correct":true}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000181","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.BUSINESS_COMBINATION","IAS38.DEFINITIONS.IDENTIFIABILITY"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000181","tested_point":"QST.IAS38.000181","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"identifiability"},"references":["IAS 38 §33","IAS 38 §12"],"exercise":{"prompt":{"fr":"","en":"The Pavane group obtains control of Selva in a business combination. Selva runs a registered clothing brand, created internally and absent from its balance sheet; it has spent 600,000 on advertising it over the years. An independent valuer estimates the fair value of the brand at 2,500,000 at the acquisition date. At what amount is the brand recognised in Pavane's consolidated financial statements?","es":""},"explanation":{"fr":"","en":"The registered brand arises from legal rights: it is identifiable (IAS 38, para. 12). Acquired in a business combination, its cost is its fair value at the acquisition date (IAS 38, para. 33), i.e. 2,500,000. The absence of the brand from Selva's balance sheet and past advertising spending play no part.","es":""},"common_error":{"fr":"","en":"Using 0 because the brand was not recognised in the acquiree's balance sheet.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"0","es":""},"correct":false,"feedback":{"fr":"","en":"Using zero amounts to reasoning from Selva's balance sheet, where the brand does not appear. For Pavane, the brand is acquired in a business combination: it arises from legal rights, so it is identifiable (IAS 38, para. 12), and its cost is its fair value at the acquisition date (IAS 38, para. 33). Rule to remember: a brand acquired in a business combination is recognised at fair value, even if the acquiree had not recognised it (IAS 38, para. 33).","es":""}},{"id":"B","text":{"fr":"","en":"600,000","es":""},"correct":false,"feedback":{"fr":"","en":"600,000 corresponds to Selva's past advertising: it is a history of expenditure, not the cost to the acquirer. In a business combination, the cost of the brand is its fair value at the acquisition date, i.e. 2,500,000 (IAS 38, para. 33). Rule to remember: cost in a business combination is fair value, not accumulated past expenditure (IAS 38, para. 33).","es":""}},{"id":"C","text":{"fr":"","en":"2,500,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"3,100,000","es":""},"correct":false,"feedback":{"fr":"","en":"3,100,000 adds the fair value (2,500,000) and the past advertising (600,000). Historical expenditure is not added to fair value: fair value already measures the brand at the acquisition date (IAS 38, para. 33). Rule to remember: fair value at the acquisition date, with no addition of past expenditure (IAS 38, para. 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000182","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.BUSINESS_COMBINATION","IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000182","tested_point":"QST.IAS38.000182","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"brands-rule"},"references":["IAS 38 §33","IAS 38 §63","IAS 38 §64"],"exercise":{"prompt":{"fr":"","en":"The Teodor group has owned for twenty years a confectionery brand that it created and developed itself. This year, it acquires Mielina in a business combination; Mielina's brand is measured at 1,800,000 at the acquisition date, and an expert estimates that Teodor's historical brand would be worth 5,000,000. The finance director wishes to present both brands consistently. Which treatment should be adopted in the consolidated financial statements?","es":""},"explanation":{"fr":"","en":"An intangible asset acquired in a business combination has a cost equal to its fair value at the acquisition date (IAS 38, para. 33): Mielina's brand is recognised at 1,800,000. By contrast, an internally generated brand is not recognised as an intangible asset (IAS 38, para. 63), because its cost cannot be distinguished from the cost of developing the business as a whole (IAS 38, para. 64). The asymmetry is intended by the standard.","es":""},"common_error":{"fr":"","en":"Recognising an internally generated brand for the sake of consistency with an acquired brand.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise both brands at fair value, i.e. 6,800,000, to ensure consistency","es":""},"correct":false,"feedback":{"fr":"","en":"Recognising both brands at fair value for the sake of consistency confuses two situations. Mielina's brand, acquired in a business combination, is measured at fair value (IAS 38, para. 33), whereas the brand Teodor created itself is internally generated and is not recognised (IAS 38, para. 63). Rule to remember: the way an item is obtained determines its treatment, consistency of presentation is not a criterion (IAS 38, paras. 33 and 63).","es":""}},{"id":"B","text":{"fr":"","en":"Recognise Mielina's brand at 1,800,000; do not recognise the brand created by Teodor","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Recognise neither brand, since one of them is internally generated","es":""},"correct":false,"feedback":{"fr":"","en":"Recognising neither brand because one of them is internally generated wrongly extends non-recognition to the acquired brand. Mielina's brand is acquired in a business combination: its cost is fair value, 1,800,000 (IAS 38, para. 33). Non-recognition applies to the brand created by Teodor (IAS 38, para. 63). Rule to remember: an acquired brand is recognised at fair value, an internally generated brand is not recognised (IAS 38, paras. 33 and 63).","es":""}},{"id":"D","text":{"fr":"","en":"Recognise Teodor's brand at its cumulative advertising expenditure and Mielina's at 1,800,000","es":""},"correct":false,"feedback":{"fr":"","en":"Adding up Teodor's advertising spend to recognise its brand is not possible: the cost of an internally generated brand cannot be distinguished from the cost of developing the business as a whole (IAS 38, para. 64), and the brand is not recognised (IAS 38, para. 63). Mielina's brand, by contrast, is recognised at 1,800,000 (IAS 38, para. 33). Rule to remember: an internally generated brand is not recognised, even at the cost of its expenditure (IAS 38, paras. 63 and 64).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000184","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.BUSINESS_COMBINATION","IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000184","tested_point":"QST.IAS38.000184","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §34","IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"Two research projects on composite materials are at the same stage. The first has been run internally by Arvelle from the outset; the second is taken over by Arvelle when it acquires Duna in a business combination, and it meets the definition of an intangible asset. Which comparison is correct in Arvelle's consolidated financial statements?","es":""},"explanation":{"fr":"","en":"An in-process research and development project of the acquiree that meets the definition of an intangible asset is recognised separately from goodwill by the acquirer (IAS 38, para. 34). By contrast, no intangible asset arising from internal research is recognised: this expenditure is expensed (IAS 38, para. 54). Two comparable projects are therefore treated differently depending on how they were obtained.","es":""},"common_error":{"fr":"","en":"Applying the same solution to both projects without distinguishing how they were obtained.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both projects are treated in the same way: their research expenditure is expensed and no asset is recognised","es":""},"correct":false,"feedback":{"fr":"","en":"The two projects are not treated the same way: the one taken over from Duna meets the definition of an intangible asset and is recognised separately from goodwill by the acquirer (IAS 38, para. 34). The internal research, by contrast, remains an expense (IAS 38, para. 54). Rule to remember: the way the project is obtained determines its treatment, at the same stage of progress (IAS 38, paras. 34 and 54).","es":""}},{"id":"B","text":{"fr":"","en":"Both projects are recognised as intangible assets, at the cumulative research expenditure incurred by each entity","es":""},"correct":false,"feedback":{"fr":"","en":"Recognising both projects at the accumulated research expenditure wrongly applies the same logic to both. No asset is recognised for internal research, whose expenditure is expensed (IAS 38, para. 54). The Duna project is recognised separately from goodwill, but at its fair value at the acquisition date, not at Duna's accumulated expenditure (IAS 38, paras. 33 and 34). Rule to remember: expense for internal research, fair value for the acquired project (IAS 38, paras. 33 and 54).","es":""}},{"id":"C","text":{"fr":"","en":"The project taken over from Duna is recognised separately from goodwill; the research expenditure of the internal project is expensed","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The project taken over from Duna is subsumed in goodwill; the expenditure of the internal project is capitalised","es":""},"correct":false,"feedback":{"fr":"","en":"This answer reverses the treatments. The project taken over from Duna is not merged into goodwill: it meets the definition of an intangible asset and is recognised separately (IAS 38, para. 34). The expenditure on the internal project is expensed, as no asset is recognised for research (IAS 38, para. 54). Rule to remember: acquired project outside goodwill, internal research expensed (IAS 38, paras. 34 and 54).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000185","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.IN_PROCESS_RD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000185","tested_point":"QST.IAS38.000185","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000008","section_id":"in-process-rd-rule"},"references":["IAS 38 §43"],"exercise":{"prompt":{"fr":"","en":"Zelia separately acquired an in-process research and development project, recognised as an intangible asset. It then incurs 200,000 of work aimed at gaining new scientific knowledge on a still exploratory application. How is this expenditure recognised?","es":""},"explanation":{"fr":"","en":"Subsequent expenditure on an acquired in-process research and development project is expensed when it is research; only development expenditure meeting the criteria is added to the carrying amount (IAS 38, para. 43). Work aimed at new knowledge is research: the 200,000 is an expense.","es":""},"common_error":{"fr":"","en":"Adding research expenditure to the carrying amount of the project because the project is already an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is added to the carrying amount of the project, since the project is already an asset of Zelia","es":""},"correct":false,"feedback":{"fr":"","en":"The fact that the project is already an asset does not make later expenditure capitalisable. Work aimed at acquiring new scientific knowledge is research: its expenditure is expensed, whereas development expenditure meeting the criteria is added to the carrying amount (IAS 38, para. 43). Rule to remember: each later expenditure follows its nature, research or development, not the accounting status of the project (IAS 38, paras. 42 and 43).","es":""}},{"id":"B","text":{"fr":"","en":"It is recognised as an expense","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is added to the carrying amount up to the price paid for the project","es":""},"correct":false,"feedback":{"fr":"","en":"There is no cap linked to the price paid: the nature of the expenditure determines its treatment. The 200,000 of exploratory research is an expense, whether its amount is below or above the price of the project (IAS 38, para. 43). Rule to remember: later research expenditure is expensed, whatever the acquisition price of the project (IAS 38, para. 43).","es":""}},{"id":"D","text":{"fr":"","en":"It is split between expense and asset in proportion to the share of the project already capitalised","es":""},"correct":false,"feedback":{"fr":"","en":"There is no pro rata split based on the part already capitalised: the nature of each item of expenditure decides. Here, work aimed at new knowledge is research, hence an expense for its full amount (IAS 38, para. 43). Rule to remember: the phase of the work determines the treatment, not the proportion of the project already recognised as an asset (IAS 38, paras. 42 and 43).","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000186","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.IN_PROCESS_RD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000186","tested_point":"QST.IAS38.000186","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000008","section_id":"in-process-rd-rule"},"references":["IAS 38 §42"],"exercise":{"prompt":{"fr":"","en":"An in-process research and development project was acquired, either separately or in a business combination, and recognised as an intangible asset. Under which rules is the expenditure subsequently incurred on this project accounted for?","es":""},"explanation":{"fr":"","en":"Subsequent expenditure on an in-process research and development project acquired separately or in a business combination is accounted for under paragraphs 54 to 62, i.e. like internally generated research and development (IAS 38, para. 42). The way the project was acquired therefore does not change the treatment of subsequent expenditure.","es":""},"common_error":{"fr":"","en":"Applying to later expenditure a treatment specific to the acquired project (fair value or goodwill).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Under the business combination rules: it is measured at fair value at the date it is incurred","es":""},"correct":false,"feedback":{"fr":"","en":"The business-combination rules serve to measure the project at the acquisition date, at fair value (IAS 38, para. 33); they do not apply to expenditure incurred afterwards. That expenditure follows paragraphs 54 to 62, like internally generated R&D (IAS 38, para. 42). Rule to remember: expenditure after the acquisition of an in-process R&D project is treated under paragraphs 54 to 62 (IAS 38, para. 42).","es":""}},{"id":"B","text":{"fr":"","en":"It is always added to the carrying amount, as the project has already passed the recognition test","es":""},"correct":false,"feedback":{"fr":"","en":"Systematically adding this expenditure to the carrying amount overlooks that the project, once recognised, does not predetermine the treatment of later expenditure. It is treated under paragraphs 54 to 62: expensed if it is research or development not meeting the criteria, added to the carrying amount if the development criteria are met (IAS 38, paras. 42 and 43). Rule to remember: the nature of the expenditure decides, not the status of the project.","es":""}},{"id":"C","text":{"fr":"","en":"It is included in goodwill when the project was acquired in a business combination","es":""},"correct":false,"feedback":{"fr":"","en":"Expenditure incurred after the acquisition is not part of the goodwill of the combination: it follows the research and development rules of paragraphs 54 to 62 (IAS 38, para. 42). It is therefore expensed, or added to the carrying amount of the project, according to its nature (IAS 38, para. 43). Rule to remember: later expenditure on an acquired project does not go through goodwill (IAS 38, para. 42).","es":""}},{"id":"D","text":{"fr":"","en":"Under the rules for internally generated research and development (para. 54 to 62)","es":""},"correct":true}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000189","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.IN_PROCESS_RD"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000189","tested_point":"QST.IAS38.000189","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000008","section_id":"in-process-rd-rule"},"references":["IAS 38 §42","IAS 38 §43"],"exercise":{"prompt":{"fr":"","en":"The laboratory Pharmalis acquired an in-process vaccine project for 1,200,000. During the following year, it incurs 150,000 of research studies on another indication, 80,000 of development from January to April, a period during which not all the development-phase criteria were demonstrated, and 220,000 of development from May to December, once all the criteria were demonstrated. What amount is added to the carrying amount of the project for the year?","es":""},"explanation":{"fr":"","en":"Subsequent expenditure on an acquired project is accounted for under the rules for internal research and development (IAS 38, para. 42). Research expenditure (150,000) and development expenditure before the criteria are demonstrated (80,000) are expensed; only the 220,000 of development meeting the criteria is added to the carrying amount (IAS 38, para. 43).","es":""},"common_error":{"fr":"","en":"Adding all the year's expenditure to the carrying amount of the project because the project is acquired.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"450,000","es":""},"correct":false,"feedback":{"fr":"","en":"450,000 adds the three kinds of expenditure (150,000 + 80,000 + 220,000) as if all were added to a project that is already an asset. Subsequent expenditure follows the internal R&D rules (IAS 38, para. 42): the research (150,000) and the development before the criteria were demonstrated (80,000) are expenses, i.e. 230,000 (IAS 38, para. 43). Rule to remember: the nature of the expenditure and the demonstration of the criteria decide whether it is added to the asset (IAS 38, para. 43).","es":""}},{"id":"B","text":{"fr":"","en":"300,000","es":""},"correct":false,"feedback":{"fr":"","en":"300,000 is 80,000 + 220,000, i.e. all the development of the year. The 80,000 from January to April was incurred when the development-phase criteria were not all demonstrated: it is an expense (IAS 38, para. 43). The development from May to December (220,000) meets the criteria and is added to the carrying amount. Rule to remember: development expenditure is added to the asset from the moment all the criteria are demonstrated (IAS 38, para. 43).","es":""}},{"id":"C","text":{"fr":"","en":"220,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"0","es":""},"correct":false,"feedback":{"fr":"","en":"Zero overlooks that an acquired project can receive development expenditure added to its carrying amount. The 220,000 incurred from May to December, once all the criteria are demonstrated, meet the conditions for the addition (IAS 38, para. 43). Rule to remember: development meeting the criteria is added to the carrying amount of the acquired project, research remains an expense (IAS 38, paras. 42 and 43).","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000190","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.IN_PROCESS_RD","IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000190","tested_point":"QST.IAS38.000190","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"development-rule"},"references":["IAS 38 §43","IAS 38 §42","IAS 38 §57"],"exercise":{"prompt":{"fr":"","en":"Ivora separately acquired an in-process battery project, recognised as an intangible asset. The project is now in its development phase and technical feasibility is demonstrated, but at the year-end Ivora has not obtained the financing needed to complete it. Development expenditure for the year amounts to 300,000. The finance director proposes to add it to the carrying amount of the project, since the project is already an asset. Which treatment should be adopted?","es":""},"explanation":{"fr":"","en":"Subsequent expenditure on an acquired project follows the rules for internal research and development (IAS 38, para. 42). Development expenditure that does not meet the criteria is expensed (IAS 38, para. 43); the availability of the resources, including financial resources, needed to complete the development is one of the criteria (IAS 38, para. 57). The 300,000 is therefore expensed.","es":""},"common_error":{"fr":"","en":"Capitalising development expenditure despite being unable to demonstrate the resources criterion, on the ground that the project is already an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Add it to the carrying amount, as the acquisition has already validated recognition of the project","es":""},"correct":false,"feedback":{"fr":"","en":"Acquiring the project did not validate later expenditure in advance: it follows the internal R&D rules (IAS 38, para. 42). Development expenditure that does not meet the criteria is an expense (IAS 38, para. 43), and the availability of resources, including financial resources, is one of those criteria (IAS 38, para. 57). With no financing obtained, the 300,000 is an expense. Rule to remember: the project's status as an asset does not exempt later expenditure from demonstrating the criteria (IAS 38, paras. 42 and 57).","es":""}},{"id":"B","text":{"fr":"","en":"Expense it, because not all the development-phase criteria are demonstrated","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Add it to the carrying amount, up to the price originally paid for the project","es":""},"correct":false,"feedback":{"fr":"","en":"No cap linked to the price paid exists. What matters is the demonstration of all the development criteria, including adequate resources to complete the project (IAS 38, para. 57): without financing, the 300,000 does not meet the criteria and is an expense (IAS 38, para. 43). Rule to remember: the addition to the carrying amount depends on the criteria, not on a maximum amount (IAS 38, paras. 43 and 57).","es":""}},{"id":"D","text":{"fr":"","en":"Hold it in a suspense account until financing is obtained, then decide","es":""},"correct":false,"feedback":{"fr":"","en":"Deferring the decision in a suspense account amounts to postponing an expense. At the reporting date, financing has not been obtained: development expenditure that does not meet the criteria is an expense (IAS 38, para. 43), and an asset arising from development is measured from the date the criteria are first met (IAS 38, para. 65). Rule to remember: the status of the criteria when the expenditure is incurred determines its treatment (IAS 38, paras. 43 and 65).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000191","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.GOVERNMENT_GRANT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000191","tested_point":"QST.IAS38.000150","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"grant-rule"},"references":["IAS 38 §44"],"exercise":{"prompt":{"fr":"","en":"An entity receives an intangible asset free of charge from the State by way of a government grant. Which initial measurements are permitted?","es":""},"explanation":{"fr":"","en":"When an intangible asset is acquired free of charge, or for nominal consideration, by way of a government grant, the entity may recognise both the asset and the grant at fair value, or recognise the asset at a nominal amount plus any expenditure directly attributable to preparing it (IAS 38, para. 44). Both options are available.","es":""},"common_error":{"fr":"","en":"Forgetting the option of the nominal amount plus directly attributable expenditure and defaulting to fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fair value only, with both the asset and the grant recognised at that amount on the date of the award","es":""},"correct":false,"feedback":{"fr":"","en":"This answer forgets the second option: the standard also allows the asset to be recognised at a nominal amount plus expenditure directly attributable to preparing it (IAS 38, para. 44). Fair value, with the grant recognised for the same amount, is one option of two, not an obligation. Rule to remember: two initial measurements are possible for an intangible asset obtained by a government grant (IAS 38, para. 44).","es":""}},{"id":"B","text":{"fr":"","en":"Either the asset and the grant at fair value, or the asset at a nominal amount plus directly attributable expenditure","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A nil amount only, since no price was paid to the State to obtain the asset","es":""},"correct":false,"feedback":{"fr":"","en":"A nil amount matches neither option: the nominal amount is increased by the expenditure directly attributable to preparing the asset, and fair value remains possible (IAS 38, para. 44). The absence of a price paid to the government does not prevent recognition. Rule to remember: asset and grant at fair value, or the nominal amount plus directly attributable expenditure (IAS 38, para. 44).","es":""}},{"id":"D","text":{"fr":"","en":"The carrying amount of the asset in the books of the authority that granted it","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount of the asset in the books of the granting authority is not a prescribed measurement basis. The entity chooses between fair value, with the grant for the same amount, and the nominal amount plus expenditure directly attributable to preparing the asset (IAS 38, para. 44). Rule to remember: the two possible measurements are those in paragraph 44, not the grantor's carrying amount (IAS 38, para. 44).","es":""}}]},"scope":"PROFESSIONAL_ONLY","reserve":true},{"key":"QST.IAS38.000192","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.GOVERNMENT_GRANT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000192","tested_point":"QST.IAS38.000192","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"grant-rule"},"references":["IAS 38 §44"],"exercise":{"prompt":{"fr":"","en":"The airline Alvea receives landing rights at a regional airport free of charge from the State. Their fair value is estimated at 900,000. Alvea bears 12,000 of legal fees directly attributable to obtaining and preparing these rights. It chooses to recognise the asset at a nominal amount plus directly attributable expenditure. What is the initial amount of the asset?","es":""},"explanation":{"fr":"","en":"For an intangible asset received free of charge by way of a government grant, the option chosen by Alvea is to recognise the asset at its nominal amount, here nil, plus directly attributable expenditure (IAS 38, para. 44): 0 + 12,000 = 12,000. The fair value of 900,000 would be used only under the other option.","es":""},"common_error":{"fr":"","en":"Using the fair value of 900,000 when the entity chose the nominal-amount option.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"0","es":""},"correct":false,"feedback":{"fr":"","en":"Zero forgets the 12,000 of legal fees: the option chosen by Alvea is the nominal amount plus expenditure directly attributable to obtaining and preparing the rights (IAS 38, para. 44). These fees are directly attributable, so they are added: 0 + 12,000 = 12,000. Rule to remember: under the nominal-amount option, directly attributable expenditure is added to the nominal amount (IAS 38, para. 44).","es":""}},{"id":"B","text":{"fr":"","en":"12,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"900,000","es":""},"correct":false,"feedback":{"fr":"","en":"900,000 is the fair value of the rights, which belongs to the other option, where the asset and the grant are recognised at fair value. Alvea chose the nominal amount plus directly attributable expenditure (IAS 38, para. 44): fair value plays no part in the calculation. Rule to remember: the option chosen determines the measurement basis, fair value or nominal amount plus costs (IAS 38, para. 44).","es":""}},{"id":"D","text":{"fr":"","en":"912,000","es":""},"correct":false,"feedback":{"fr":"","en":"912,000 adds the fair value (900,000) and the fees (12,000), which mixes the two options. With fair value, the asset is 900,000; with the nominal amount plus directly attributable expenditure, it is 12,000 (IAS 38, para. 44). Alvea chose the second. Rule to remember: the two options are not combined (IAS 38, para. 44).","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000193","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.GOVERNMENT_GRANT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000193","tested_point":"QST.IAS38.000193","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"grant-rule"},"references":["IAS 38 §44"],"exercise":{"prompt":{"fr":"","en":"The regulator grants the operator Telvio, by way of a government grant, a licence to use radio frequencies. Which statements are correct?","es":""},"explanation":{"fr":"","en":"An intangible asset acquired free of charge or for nominal consideration by way of a government grant may be recognised, together with the grant, at fair value, or at a nominal amount plus the expenditure directly attributable to preparing it (IAS 38, para. 44). Fair value is therefore not mandatory, and the absence of a price does not prevent recognition.","es":""},"common_error":{"fr":"","en":"Imposing fair value as the mandatory measurement of a licence received from an authority.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Telvio must recognise the licence at its fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value is not mandatory: it is one of two options, the other being the nominal amount plus expenditure directly attributable to preparing the licence (IAS 38, para. 44). Claiming otherwise ignores that second option. Rule to remember: two initial measurements are possible for an asset obtained through a government grant (IAS 38, para. 44).","es":""}},{"id":"B","text":{"fr":"","en":"Telvio may recognise the licence and the grant at fair value.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Telvio may recognise the licence at a nominal amount plus the expenditure directly attributable to preparing it.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A licence received for no consideration can never be recognised as an intangible asset.","es":""},"correct":false,"feedback":{"fr":"","en":"A licence received for nothing can be recognised as an intangible asset: the standard expressly covers an asset obtained free of charge or for a nominal consideration by way of a government grant (IAS 38, para. 44). The absence of a price does not deprive the entity of the asset. Rule to remember: an asset received through a government grant is recognised under one of the two options in paragraph 44 (IAS 38, para. 44).","es":""}},{"id":"E","text":{"fr":"","en":"These options also apply if Telvio pays a nominal price for the licence.","es":""},"correct":true}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000197","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.EXCHANGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000197","tested_point":"QST.IAS38.000197","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"exchange-rule"},"references":["IAS 38 §45"],"exercise":{"prompt":{"fr":"","en":"An entity acquires an intangible asset in exchange for another intangible asset. The analysis concludes that the transaction lacks commercial substance. At what amount is the asset received measured?","es":""},"explanation":{"fr":"","en":"An asset acquired in an exchange is measured at fair value unless the transaction lacks commercial substance or neither the fair value of the asset received nor that of the asset given up can be measured reliably; in those cases, its cost is the carrying amount of the asset given up (IAS 38, para. 45). In the absence of commercial substance, fair value is set aside.","es":""},"common_error":{"fr":"","en":"Measuring at fair value an exchange that lacks commercial substance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the fair value of the asset received, as estimated by an independent valuer","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value of the asset received is the measurement basis when the exchange has commercial substance and that fair value can be measured reliably. Here the analysis concludes that there is no commercial substance: the cost of the asset received is then the carrying amount of the asset given up (IAS 38, para. 45). Rule to remember: without commercial substance, the fair value of the asset received is not the measurement basis (IAS 38, para. 45).","es":""}},{"id":"B","text":{"fr":"","en":"At the fair value of the asset given up at the date of the exchange","es":""},"correct":false,"feedback":{"fr":"","en":"Even the fair value of the asset given up is set aside when there is no commercial substance: the cost of the asset received is the carrying amount of the asset given up (IAS 38, para. 45). Using the fair value of the asset given up would show a gain or loss on an exchange that has no commercial substance. Rule to remember: without commercial substance, cost is the carrying amount of the asset given up (IAS 38, para. 45).","es":""}},{"id":"C","text":{"fr":"","en":"At the carrying amount of the asset given up","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"At nil, since no cash was paid out","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a cash outflow does not mean the cost is nil: the asset given up is the consideration for the asset received. Without commercial substance, the cost of the asset received is the carrying amount of the asset given up (IAS 38, para. 45). Rule to remember: an exchange of assets without cash is still measured under paragraph 45, not at zero (IAS 38, para. 45).","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000198","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.EXCHANGE"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000308","tested_point":"VG.IAS38.000308","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"exchange-rule"},"references":["IAS 38 §45"],"exercise":{"prompt":{"fr":"","en":"Orvia gives up its licence to distribute a range of tools (cost {gross_given_up}, accumulated amortisation {acc_amortisation_given_up}) in exchange for a patent held by Kamel, with no cash adjustment. The analysis concludes that the exchange has commercial substance, and the fair value of each of the two assets is reliably measured at {fair_value}. What is the cost of the patent received by Orvia?","es":""},"explanation":{"fr":"","en":"Approach: first check the two conditions for measuring at fair value. The exchange has commercial substance and fair value is reliably measurable: the patent received is measured at fair value, i.e. 380,000 (IAS 38, para. 45). Trap: using the carrying amount of the licence given up (500,000 − 200,000 = 300,000) or its original cost (500,000); the carrying amount applies when there is no commercial substance, or when neither the fair value of the asset received nor that of the asset given up is reliable. Rule to remember: an asset received in an exchange is measured at fair value, unless the exchange lacks commercial substance or neither the fair value of the asset received nor that of the asset given up can be measured reliably; cost is then the carrying amount of the asset given up (IAS 38, para. 45).","es":""},"common_error":{"fr":"","en":"Using the carrying amount of the licence given up (300,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"gross_given_up","value":"500000","unit":"EUR"},{"id":"acc_amortisation_given_up","value":"200000","unit":"EUR"},{"id":"fair_value","value":"380000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the licence given up","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated amortisation of the licence given up","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the assets exchanged","es":""},"value":"380000","unit":"EUR"}],"steps":[{"id":"COST_RECEIVED","label":{"fr":"","en":"Cost of the patent received","es":""},"answer":380000,"tolerance":0,"unit":"EUR"}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000199","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.EXCHANGE"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000308","tested_point":"VG.IAS38.000308","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"exchange-rule"},"references":["IAS 38 §45"],"exercise":{"prompt":{"fr":"","en":"The studio Lumaq transfers the rights to a mobile game, carried at {gross_given_up} and amortised by {acc_amortisation_given_up}, to a publisher which gives it in return a licence to use a graphics engine. No additional payment is made. The transaction has commercial substance and the fair value of the two assets, reliably measured, is {fair_value}. At what amount does Lumaq recognise the licence received?","es":""},"explanation":{"fr":"","en":"Approach: the transaction has commercial substance and the fair value of both assets is reliably measured at 95,000: the licence received is measured at that fair value (IAS 38, para. 45). Trap: using the carrying amount of the rights given up (210,000 − 70,000 = 140,000) or their original cost (210,000), on the ground that it exceeds fair value. The measurement basis depends on commercial substance and on the reliability of fair value, not on the level of the carrying amount. Rule to remember: if the exchange has commercial substance and fair value is reliable, the asset received is measured at fair value, even if lower than the carrying amount of the asset given up (IAS 38, para. 45).","es":""},"common_error":{"fr":"","en":"Using the carrying amount of the rights given up (140,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"gross_given_up","value":"210000","unit":"EUR"},{"id":"acc_amortisation_given_up","value":"70000","unit":"EUR"},{"id":"fair_value","value":"95000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the game rights given up","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated amortisation of the rights given up","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the assets exchanged","es":""},"value":"95000","unit":"EUR"}],"steps":[{"id":"COST_RECEIVED","label":{"fr":"","en":"Cost of the licence received","es":""},"answer":95000,"tolerance":0,"unit":"EUR"}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000202","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.EXCHANGE"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000202","tested_point":"QST.IAS38.000202","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"exchange-rule"},"references":["IAS 38 §45"],"exercise":{"prompt":{"fr":"","en":"During the year, the Castelo group carries out two exchanges of intangible assets, with no cash adjustment. First exchange: it gives up a regional brand with a carrying amount of 120,000 for software; the transaction has commercial substance and the fair value of both assets is reliably measured at 200,000. Second exchange: it gives up a broadcasting right with a carrying amount of 80,000 for a similar right with a fair value of 150,000; the analysis concludes that there is no commercial substance. What is the total cost of the two assets received?","es":""},"explanation":{"fr":"","en":"An asset received in an exchange is measured at fair value, unless the transaction lacks commercial substance or neither the fair value of the asset received nor that of the asset given up can be measured reliably, in which case it is measured at the carrying amount of the asset given up (IAS 38, para. 45). Software: fair value, 200,000. Right received: carrying amount of the right given up, 80,000. Total: 200,000 + 80,000 = 280,000.","es":""},"common_error":{"fr":"","en":"Applying fair value to both exchanges although one of them has no commercial substance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"350,000","es":""},"correct":false,"feedback":{"fr":"","en":"350,000 adds the two fair values (200,000 + 150,000). The second exchange has no commercial substance: the fair value of 150,000 cannot be used, and the right received is measured at the carrying amount of the right given up, 80,000 (IAS 38, para. 45). Rule to remember: without commercial substance, the asset received takes the carrying amount of the asset given up (IAS 38, para. 45).","es":""}},{"id":"B","text":{"fr":"","en":"200,000","es":""},"correct":false,"feedback":{"fr":"","en":"200,000 picks up only the software from the first exchange and forgets the broadcasting right received in the second. The total asked for covers both assets: the software at 200,000 (commercial substance, reliable fair value) and the right at 80,000 (carrying amount of the right given up, for lack of commercial substance), i.e. 280,000 (IAS 38, para. 45). Rule to remember: each exchange is measured according to its own conditions (IAS 38, para. 45).","es":""}},{"id":"C","text":{"fr":"","en":"270,000","es":""},"correct":false,"feedback":{"fr":"","en":"270,000 adds 120,000 and 150,000: the treatments are reversed. The carrying amount (120,000) is applied to the first exchange, which has commercial substance and a reliable fair value, and fair value (150,000) to the second, which has no commercial substance (IAS 38, para. 45). Rule to remember: fair value if commercial substance and reliable measurement, otherwise the carrying amount of the asset given up (IAS 38, para. 45).","es":""}},{"id":"D","text":{"fr":"","en":"280,000","es":""},"correct":true}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000203","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000203","tested_point":"QST.IAS38.000203","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §48","IAS 38 §49"],"exercise":{"prompt":{"fr":"","en":"True or false? The goodwill that an entity builds up itself in the course of its business is not recognised as an asset in its statement of financial position.","es":""},"explanation":{"fr":"","en":"True. Approach: ask whether goodwill created by the entity itself meets the definition of an asset and the recognition conditions. It is not an identifiable resource and its cost cannot be measured reliably (IAS 38, paras. 48 and 49): it is therefore not recognised as an asset. Trap: believing it can be recognised because customers or reputation have economic value. Rule to remember: internally generated goodwill is not recognised as an asset (IAS 38, para. 48).","es":""},"common_error":{"fr":"","en":"Recognising the value of customers and reputation created by the entity as goodwill.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000204","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000204","tested_point":"QST.IAS38.000204","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §48"],"exercise":{"prompt":{"fr":"","en":"True or false? An entity may recognise its internally generated goodwill once an independent expert has established its value.","es":""},"explanation":{"fr":"","en":"False. Approach: the issue is the nature of internal goodwill, not the reliability of the valuer. Internally generated goodwill is not recognised as an asset (IAS 38, para. 48); an external valuation does not change its nature as a non-identifiable resource whose cost cannot be measured reliably (IAS 38, para. 49). Trap: believing an independent valuation makes the amount recognisable. Rule to remember: no valuation, even an independent one, allows internally generated goodwill to be recognised (IAS 38, para. 48).","es":""},"common_error":{"fr":"","en":"Thinking an independent valuation is enough to make internal goodwill recognisable.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000205","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000205","tested_point":"QST.IAS38.000205","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §48","IAS 38 §49"],"exercise":{"prompt":{"fr":"","en":"True or false? Internally generated goodwill is not recognised because it is not an identifiable resource and its cost cannot be measured reliably.","es":""},"explanation":{"fr":"","en":"True. Approach: link non-recognition to the two reasons given by the standard. Internal goodwill is not an identifiable resource (neither separable nor arising from contractual or other legal rights) controlled by the entity and reliably measurable at cost (IAS 38, paras. 48 and 49): it meets neither the definition nor the recognition conditions. Trap: citing a lack of future benefits or an accounting policy option. Rule to remember: internally generated goodwill is not recognised because it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, paras. 48 and 49).","es":""},"common_error":{"fr":"","en":"Explaining non-recognition by an absence of future economic benefits rather than by the absence of an identifiable resource.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000206","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000206","tested_point":"QST.IAS38.000206","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §48","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"True or false? Training and promotion expenditure that strengthens an entity's reputation may be accumulated in internally generated goodwill as soon as it is probable that it will produce future economic benefits.","es":""},"explanation":{"fr":"","en":"False. Approach: first classify these costs by nature. Training and advertising or promotion are among the expenditure recognised as an expense as soon as the entity receives the services (IAS 38, para. 69); they create no asset. Nor can they feed a goodwill balance, because internally generated goodwill is not recognised (IAS 38, para. 48). Trap: believing that the probability of future benefits is enough to capitalise them. Rule to remember: training and promotion are expenses and do not form internal goodwill (IAS 38, paras. 48 and 69).","es":""},"common_error":{"fr":"","en":"Accumulating training and advertising costs in internal goodwill because they strengthen reputation.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000207","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000207","tested_point":"QST.IAS38.000207","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §48","IAS 38 §49"],"exercise":{"prompt":{"fr":"","en":"How does an entity treat, in its financial statements, the goodwill it has generated internally?","es":""},"explanation":{"fr":"","en":"Internally generated goodwill is not recognised as an asset, because it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, paras. 48 and 49). Neither an estimated fair value nor an accumulation of expenditure allows it to be recognised as an asset.","es":""},"common_error":{"fr":"","en":"Recognising as an asset a goodwill that is estimated or measured by accumulating expenditure.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises it as an asset at its estimated fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"A fair value estimate does not allow internally generated goodwill to be recognised: it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, paras. 48 and 49). The estimated amount, however plausible, does not change this. Rule to remember: internally generated goodwill is not recognised as an asset, even if estimated at fair value (IAS 38, para. 48).","es":""}},{"id":"B","text":{"fr":"","en":"It recognises it as an asset at the accumulated cost of the expenditure that created it.","es":""},"correct":false,"feedback":{"fr":"","en":"Accumulating the expenditure that created the goodwill would give it a cost. Yet the cost of internal goodwill precisely cannot be measured reliably, and goodwill is not an identifiable resource (IAS 38, paras. 48 and 49). Rule to remember: internal goodwill is not recorded as an asset at the cost of the expenditure that created it (IAS 38, paras. 48 and 49).","es":""}},{"id":"C","text":{"fr":"","en":"It does not recognise it as an asset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It recognises it in equity, with a corresponding revaluation surplus.","es":""},"correct":false,"feedback":{"fr":"","en":"A revaluation surplus presupposes a recognised asset that is being revalued. Internal goodwill is not recognised as an asset (IAS 38, para. 48), because it is not an identifiable resource reliably measurable at cost (IAS 38, para. 49). No equity counterpart is therefore possible. Rule to remember: with no recognised asset, there is neither an asset entry nor a revaluation surplus (IAS 38, para. 48).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000208","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000208","tested_point":"QST.IAS38.000208","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §48"],"exercise":{"prompt":{"fr":"","en":"The Valtera group acquired Norvix in a business combination and recognised, under IFRS 3, goodwill on that acquisition. Its finance director notes that Valtera itself has a loyal customer base and a strong reputation, which in his view would justify its own goodwill of a comparable amount. Which statement is correct?","es":""},"explanation":{"fr":"","en":"The question states that Norvix's goodwill was recognised in the business combination under IFRS 3. Valtera's own goodwill, however, is internally generated: it is not recognised, because it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, para. 48). Recognising acquired goodwill creates no right to recognise internal goodwill.","es":""},"common_error":{"fr":"","en":"Deducing from the recognition of acquired goodwill a right to recognise the entity's own goodwill.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Valtera may recognise its own goodwill, since Norvix's goodwill has been recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"Acquired goodwill and internal goodwill follow different rules: Norvix's was recognised in the business combination, as the facts state, whereas Valtera's is internally generated and is not recognised (IAS 38, para. 48). Rule to remember: recognising acquired goodwill creates no right to recognise internal goodwill (IAS 38, para. 48).","es":""}},{"id":"B","text":{"fr":"","en":"Norvix's goodwill arises from the acquisition; Valtera's, generated internally, is not recognised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Both goodwills must be recognised, each at its fair value at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Internally generated goodwill is not recognised, even at an estimated fair value at the reporting date: it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, paras. 48 and 49). Norvix's goodwill, by contrast, is an asset because it was recognised in the business combination. Rule to remember: internal goodwill is not remeasured at the reporting date in order to be recognised (IAS 38, para. 48).","es":""}},{"id":"D","text":{"fr":"","en":"Neither goodwill can be recognised as an asset, since goodwill is never an identifiable resource of the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer wrongly generalises: Norvix's goodwill was recognised in the business combination, as the facts state. Non-recognition applies to internally generated goodwill, a non-identifiable resource whose cost cannot be measured reliably (IAS 38, paras. 48 and 49), such as Valtera's. Rule to remember: the prohibition concerns internally generated goodwill, not goodwill from a business combination (IAS 38, para. 48).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000209","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000209","tested_point":"QST.IAS38.000128","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §48","IAS 38 §49"],"exercise":{"prompt":{"fr":"","en":"Why is internally generated goodwill not recognised as an asset?","es":""},"explanation":{"fr":"","en":"Internally generated goodwill is not recognised because it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, paras. 48 and 49). It is neither an accounting option nor an absence of benefits: non-recognition is a mandatory rule.","es":""},"common_error":{"fr":"","en":"Explaining non-recognition by an absence of future benefits rather than by the absence of an identifiable resource.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because, by nature, it provides no future economic benefits to the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Internal goodwill may contribute to future benefits, for example through loyal customers: that is not the reason it is not recognised. The reason is that it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, paras. 48 and 49). Rule to remember: the non-recognition of internal goodwill is due to identifiability and reliable cost measurement, not to a lack of future benefits (IAS 38, para. 49).","es":""}},{"id":"B","text":{"fr":"","en":"Because it is not an identifiable resource and its cost cannot be measured reliably.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Because the entity has an accounting policy option allowing it not to recognise it, an option chosen by most entities.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no accounting policy option: internally generated goodwill is not recognised as an asset (IAS 38, para. 48), because it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, para. 49). Whether \"most entities\" make a choice is therefore beside the point. Rule to remember: non-recognition of internal goodwill is required, it does not result from a choice (IAS 38, para. 48).","es":""}},{"id":"D","text":{"fr":"","en":"Because its value is recognised directly in profit or loss each year, in the same way as the year's research expenditure.","es":""},"correct":false,"feedback":{"fr":"","en":"Internal goodwill is not an amount released to profit or loss every year: it is simply not recognised as an asset, because it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, paras. 48 and 49). Research costs are expensed when incurred (IAS 38, para. 54), but that is a different mechanism. Rule to remember: do not confuse non-recognition of goodwill with expensing of research (IAS 38, paras. 48 and 54).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS38.000210","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000210","tested_point":"QST.IAS38.000210","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §48","IAS 38 §49","IAS 38 §50"],"exercise":{"prompt":{"fr":"","en":"The family company Brenac, whose net assets have a carrying amount of 12,000,000, received a takeover offer of 20,000,000 from a competitor, which it turned down. Its manager believes that the difference of 8,000,000 reflects the quality of its customer base, its know-how and its location, and wishes to recognise it as an asset in respect of goodwill. What is your answer?","es":""},"explanation":{"fr":"","en":"The difference between the value offered and the carrying amount of net assets reflects the customer base, know-how and location developed by Brenac itself: it is internally generated goodwill. It is not recognised, because it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, paras. 48 and 49). The gap between the value placed on the business and the carrying amount of its net assets results from many factors and does not measure the cost of intangible assets controlled by the entity (IAS 38, para. 50). No offer, valuation or approval changes this treatment.","es":""},"common_error":{"fr":"","en":"Recognising as goodwill the difference between a price offered by a third party and net book value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He may recognise goodwill of 8,000,000, as the takeover offer is a reliable valuation.","es":""},"correct":false,"feedback":{"fr":"","en":"A takeover offer gives an indication of the value of the business, not the cost of a controlled intangible asset. The difference between the value attributed to the business and its net book value results from many factors and does not measure the cost of intangible assets the entity controls (IAS 38, para. 50); internally generated goodwill is not recognised (IAS 38, para. 48). Rule to remember: the difference between an offer and net book value is not a recognisable asset (IAS 38, paras. 48 and 50).","es":""}},{"id":"B","text":{"fr":"","en":"He may recognise goodwill of 20,000,000, i.e. the price offered by the competitor.","es":""},"correct":false,"feedback":{"fr":"","en":"20,000,000 is the price offered for the whole business, which includes its identifiable net assets (12,000,000): it is not the cost of goodwill. Internally generated goodwill is in any case not recognised, as the value difference does not measure the cost of controlled intangible assets (IAS 38, paras. 48 and 50). Rule to remember: do not confuse the price of a business with the cost of an intangible asset (IAS 38, para. 50).","es":""}},{"id":"C","text":{"fr":"","en":"No goodwill is recognised: this difference reflects internally generated goodwill.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"He may recognise the goodwill provided an independent expert confirms the amount of the offer and the auditor approves it.","es":""},"correct":false,"feedback":{"fr":"","en":"An independent valuation and the auditor's agreement do not change the nature of the item: internally generated goodwill is not an identifiable resource and its cost cannot be measured reliably, so it is not recognised (IAS 38, paras. 48 and 49). External validation does not replace the standard's criterion. Rule to remember: no external confirmation makes internal goodwill recognisable (IAS 38, para. 48).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000211","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000211","tested_point":"QST.IAS38.000211","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §48","IAS 38 §49"],"exercise":{"prompt":{"fr":"","en":"The Ostral group acquired Kemri two years ago; the goodwill arising from this business combination was recognised under IFRS 3. Since then, Ostral's own profitability and reputation have increased sharply. A consultant proposes applying to Ostral the valuation multiple used for Kemri in order to recognise goodwill specific to Ostral, measured consistently. What position do you take?","es":""},"explanation":{"fr":"","en":"Kemri's goodwill was recognised in the business combination under IFRS 3, as the question states. Ostral's own goodwill is internally generated: it is not recognised, because it is not an identifiable resource and its cost cannot be measured reliably (IAS 38, paras. 48 and 49). A consistent valuation method has no effect on this prohibition, nor does it justify calling the acquired goodwill into question.","es":""},"common_error":{"fr":"","en":"Applying to an entity the valuation multiple of an acquired company in order to recognise its own goodwill.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Accept the proposal: using the same multiple ensures a valuation consistent with Kemri's goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"The method of valuation is beside the point: using the same multiple as for Kemri has no effect on the nature of Ostral's own goodwill, which is internally generated, is not an identifiable resource and whose cost cannot be measured reliably (IAS 38, paras. 48 and 49). Rule to remember: a consistent valuation method does not make internal goodwill recognisable (IAS 38, para. 48).","es":""}},{"id":"B","text":{"fr":"","en":"Refuse: Ostral's own goodwill is internally generated and is not recognised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Accept the proposal, recognising Ostral's goodwill in other comprehensive income rather than in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Placing Ostral's goodwill in other comprehensive income does not make it recognisable: it is not recognised as an asset (IAS 38, para. 48), so there is no counterpart to present, either in profit or loss or in other comprehensive income. Rule to remember: choosing the counterpart line does not circumvent non-recognition (IAS 38, para. 48).","es":""}},{"id":"D","text":{"fr":"","en":"Also derecognise Kemri's goodwill, so as to treat the group's two goodwills consistently.","es":""},"correct":false,"feedback":{"fr":"","en":"Kemri's goodwill arises from a business combination accounted for under IFRS 3, according to the facts; non-recognition applies to internally generated goodwill (IAS 38, para. 48). Derecognising acquired goodwill to harmonise treatments is an error of judgement: consistency does not justify reopening acquired goodwill. Rule to remember: internal goodwill is not recognised, acquired goodwill is (IAS 38, para. 48).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000212","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000212","tested_point":"QST.IAS38.000212","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §48","IAS 38 §49"],"exercise":{"prompt":{"fr":"","en":"To obtain a loan, Tandor has its business valued by an independent firm. The report attributes 3,500,000 of the value to the customer base, organisation and reputation of the business, without identifying any separate asset. The banker suggests showing this amount in the statement of financial position. What accounting treatment do you adopt?","es":""},"explanation":{"fr":"","en":"The valued amount corresponds to Tandor's customer base, organisation and reputation, with no separate asset identified: it is internally generated goodwill. It is not recognised as an asset, as it is not an identifiable resource whose cost can be measured reliably (IAS 38, paras. 48 and 49). The aim of obtaining a loan does not change this treatment.","es":""},"common_error":{"fr":"","en":"Showing in the statement of financial position a business value determined by a valuer.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise 3,500,000 as an intangible asset, as the independent valuation is reliable.","es":""},"correct":false,"feedback":{"fr":"","en":"The reliability of an independent valuation is not enough: the 3,500,000 corresponds to customers, organisation and reputation, with no separate asset identified. It is internally generated goodwill, which is not an identifiable resource and is not recognised (IAS 38, paras. 48 and 49). Rule to remember: an amount attributed to customers and reputation with no separate asset is not recognised as an intangible asset (IAS 38, paras. 48 and 49).","es":""}},{"id":"B","text":{"fr":"","en":"Recognise nothing, as this amount corresponds to internally generated goodwill.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Recognise 3,500,000 as goodwill and amortise it over the term of the loan granted by the bank.","es":""},"correct":false,"feedback":{"fr":"","en":"Recognising and then amortising this amount over the loan period presupposes an asset to begin with. Internally generated goodwill is not recognised as an asset (IAS 38, para. 48): there is therefore nothing to amortise. The loan sought does not change this treatment. Rule to remember: what is not recognised as an asset is not amortised (IAS 38, para. 48).","es":""}},{"id":"D","text":{"fr":"","en":"Recognise 3,500,000 as goodwill, with a corresponding revaluation reserve in equity.","es":""},"correct":false,"feedback":{"fr":"","en":"A revaluation reserve presupposes a recognised asset that is revalued. Internal goodwill is not recognised as an asset (IAS 38, para. 48), so no equity counterpart is possible. Rule to remember: with no recognised asset, there is no revaluation reserve (IAS 38, para. 48).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000213","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000213","tested_point":"QST.IAS38.000213","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §48","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"During the year, Helvan funds a training programme for its sales staff and an advertising campaign, in order to strengthen its reputation and customer loyalty. How is this expenditure treated?","es":""},"explanation":{"fr":"","en":"Training and advertising and promotional activities are among the items of expenditure recognised as an expense (IAS 38, para. 69). Even though they strengthen the business's reputation, they cannot form goodwill, because internally generated goodwill is not recognised as an asset (IAS 38, para. 48).","es":""},"common_error":{"fr":"","en":"Capitalising training and advertising costs as goodwill because they increase the value of the business.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an expense; no internally generated goodwill is recognised.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As an asset in internally generated goodwill, because it increases the value of the business.","es":""},"correct":false,"feedback":{"fr":"","en":"A rise in the value of the business does not allow internal goodwill to be recognised: internally generated goodwill is not recognised as an asset (IAS 38, para. 48), and training and advertising are expenses (IAS 38, para. 69). Spending that strengthens reputation does not create an asset for that reason. Rule to remember: training and advertising are expenses, whatever their effect on the value of the business (IAS 38, paras. 48 and 69).","es":""}},{"id":"C","text":{"fr":"","en":"As an asset in goodwill, then amortised over the duration of the advertising campaign.","es":""},"correct":false,"feedback":{"fr":"","en":"There is nothing to amortise: no internal goodwill is recognised as an asset (IAS 38, para. 48). Training and advertising are expenses as soon as the entity receives the services (IAS 38, para. 69): they hit profit or loss for the year, not several years through amortisation. Rule to remember: what is not an asset is not amortised, and this expenditure is an immediate expense (IAS 38, paras. 48 and 69).","es":""}},{"id":"D","text":{"fr":"","en":"Training as an expense and advertising as an asset, in internally generated goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"Advertising is, like training, recognised as an expense (IAS 38, para. 69): one cannot capitalise one as goodwill and expense the other, since internal goodwill is not recognised (IAS 38, para. 48). This answer treats advertising differently without justification. Rule to remember: training, advertising and promotion follow the same treatment, an expense (IAS 38, para. 69).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000214","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000214","tested_point":"QST.IAS38.000214","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §53"],"exercise":{"prompt":{"fr":"","en":"True or false? When an entity cannot distinguish the research phase from the development phase of an internal project, it treats all the expenditure on that project as incurred in the research phase.","es":""},"explanation":{"fr":"","en":"True. Approach: ask whether the entity can distinguish the research phase from the development phase. If it cannot, it treats all the expenditure on the project as incurred in the research phase (IAS 38, para. 53), and therefore as an expense (IAS 38, para. 54). Trap: seeing this as an option that would let the entity pick the most favourable phase. Rule to remember: when the phases are indistinguishable, all expenditure on the project is treated as research (IAS 38, para. 53).","es":""},"common_error":{"fr":"","en":"Capitalising the expenditure on an internal project whose phases cannot be distinguished, by classing it as development.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000215","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000215","tested_point":"QST.IAS38.000215","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §53"],"exercise":{"prompt":{"fr":"","en":"True or false? When the phases of an internal project cannot be separated, the entity allocates the expenditure between research and development in proportion to the time elapsed since the project began.","es":""},"explanation":{"fr":"","en":"False. Approach: when separation is impossible, apply the standard's fallback rule rather than an estimate. All expenditure on the project is treated as incurred in the research phase (IAS 38, para. 53); no time-based allocation key is used. Trap: splitting pro rata to elapsed time in order to capitalise part of it. Rule to remember: if the phases cannot be separated, everything is treated as research, with no flat-rate allocation (IAS 38, para. 53).","es":""},"common_error":{"fr":"","en":"Splitting the expenditure on a project with indistinguishable phases pro rata to time in order to capitalise part of it.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000216","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000216","tested_point":"QST.IAS38.000216","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §52"],"exercise":{"prompt":{"fr":"","en":"True or false? For the purpose of the rules on internally generated intangible assets, the terms research phase and development phase have a broader meaning than the definitions of research and development.","es":""},"explanation":{"fr":"","en":"True. Approach: distinguish the definitions of research and development from the phases used to assess an internally generated asset. To assess whether that asset can be recognised, the entity classifies the generation of the asset into a research phase and a development phase, notions with a wider meaning than the definitions (IAS 38, para. 52). Trap: equating the phases with the definitions. Rule to remember: the research phase and the development phase have a wider meaning than the definitions of research and development (IAS 38, para. 52).","es":""},"common_error":{"fr":"","en":"Equating the research phase and the development phase with the definitions of research and development.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000217","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000217","tested_point":"QST.IAS38.000217","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §52"],"exercise":{"prompt":{"fr":"","en":"An entity is carrying out an internal project that may result in an intangible asset. What approach does IAS 38 require in order to assess whether the asset can be recognised?","es":""},"explanation":{"fr":"","en":"To assess whether an internally generated intangible asset meets the recognition criteria, the entity classifies the generation of the asset into a research phase and a development phase (IAS 38, para. 52). The treatment of the expenditure then depends on the phase in which it is incurred.","es":""},"common_error":{"fr":"","en":"Assessing an internal project from its value or expected sales rather than by phase.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Classify the generation of the asset into a research phase and a development phase.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Have an expert measure the fair value of the project at each reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Having an expert measure the project's fair value at each reporting date is not the approach prescribed to assess an internally generated asset. The entity first classifies the generation of the asset into a research phase and a development phase (IAS 38, para. 52); the treatment of expenditure then depends on the phase. Rule to remember: the starting point is the classification into phases, not a value of the project (IAS 38, para. 52).","es":""}},{"id":"C","text":{"fr":"","en":"Compare the project budget with the expected revenue from the future product on the market.","es":""},"correct":false,"feedback":{"fr":"","en":"Comparing the project budget with expected revenue does not replace the classification into phases. To assess whether an internally generated asset can be recognised, the entity classifies the generation of the asset into a research phase and a development phase (IAS 38, para. 52). Future economic benefits belong to the development-phase criteria (IAS 38, para. 57). Rule to remember: phases first, development criteria next (IAS 38, paras. 52 and 57).","es":""}},{"id":"D","text":{"fr":"","en":"Wait until the project is completed to decide whether or not to capitalise all its expenditure.","es":""},"correct":false,"feedback":{"fr":"","en":"Waiting for the project to be completed before deciding whether to capitalise all of its expenditure misunderstands the phase-based reasoning: the analysis is done as the project progresses, by classing the generation of the asset into a research phase and a development phase (IAS 38, para. 52). Research-phase expenditure is not capitalised (IAS 38, para. 54). Rule to remember: the treatment depends on the phase of each item of expenditure, not on the outcome of the project (IAS 38, paras. 52 and 54).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000218","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES","IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000218","tested_point":"QST.IAS38.000218","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §53","IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"Ardel has spent 300,000 on an internal project for a new composite material, without being able to distinguish, in its tracking, the work relating to research from that relating to development. How should these 300,000 be treated?","es":""},"explanation":{"fr":"","en":"As it cannot distinguish the two phases, Ardel treats all the expenditure on the project as incurred in the research phase (IAS 38, para. 53). No intangible asset arising from research is recognised: this expenditure is recognised as an expense when incurred (IAS 38, para. 54). The 300,000 are therefore an expense.","es":""},"common_error":{"fr":"","en":"Classing as development, and capitalising, expenditure whose phase cannot be distinguished.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise them as an expense when incurred, as research expenditure.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Capitalise half of them, for lack of a better allocation key between the two phases.","es":""},"correct":false,"feedback":{"fr":"","en":"Capitalising half for lack of a better key applies a flat-rate split that the standard does not use. When the phases cannot be distinguished, all expenditure is treated as incurred in the research phase (IAS 38, para. 53) and expensed (IAS 38, para. 54). The 300,000 is therefore an expense. Rule to remember: no flat-rate split when the phases are indistinguishable (IAS 38, para. 53).","es":""}},{"id":"C","text":{"fr":"","en":"Capitalise them in full, since the project targets a material intended for sale.","es":""},"correct":false,"feedback":{"fr":"","en":"The commercial purpose of the material is not enough to capitalise: since the phases cannot be distinguished, the 300,000 is treated as research expenditure (IAS 38, para. 53), for which no asset is recognised (IAS 38, para. 54). Rule to remember: the future use or sale of the product does not remove the need to distinguish the phases (IAS 38, para. 53).","es":""}},{"id":"D","text":{"fr":"","en":"Hold them in a suspense account until an allocation between the phases becomes possible.","es":""},"correct":false,"feedback":{"fr":"","en":"Keeping this expenditure pending in the balance sheet until separation becomes possible would amount to capitalising it without development being demonstrated. The phases being indistinguishable, the whole project is treated as research (IAS 38, para. 53), and this expenditure is an expense when incurred (IAS 38, para. 54). Rule to remember: research expenditure is not deferred, it is an expense as soon as it is incurred (IAS 38, para. 54).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000219","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES","IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000219","tested_point":"QST.IAS38.000219","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §52","IAS 38 §53","IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about the phases of an internal project are correct?","es":""},"explanation":{"fr":"","en":"The entity classifies the generation of an internally generated asset into a research phase and a development phase, terms broader than the definitions (IAS 38, para. 52). If it cannot distinguish them, all the expenditure is treated as incurred in the research phase (IAS 38, para. 53), and that expenditure is recognised as an expense when incurred (IAS 38, para. 54). No option or flat-rate allocation is provided for.","es":""},"common_error":{"fr":"","en":"Freely choosing to treat as development expenditure whose phases are indistinguishable.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity may choose to treat as development all the expenditure on a project whose phases cannot be distinguished.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no choice: when the phases are not distinguishable, all expenditure on the project is treated as incurred in the research phase (IAS 38, para. 53), not in development. Classing everything as development would capitalise expenditure that nothing shows to be development. Rule to remember: indistinguishable phases means research (IAS 38, para. 53).","es":""}},{"id":"B","text":{"fr":"","en":"The entity classifies the generation of the asset into a research phase and a development phase.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The terms research phase and development phase are strictly limited to the definitions of research and development.","es":""},"correct":false,"feedback":{"fr":"","en":"The notions of research phase and development phase are not confined to the definitions: they have a wider meaning (IAS 38, para. 52). The entity classes the generation of the asset into one or the other phase to assess recognition. Rule to remember: the phases are wider than the definitions (IAS 38, para. 52).","es":""}},{"id":"D","text":{"fr":"","en":"If the two phases cannot be distinguished, all the expenditure on the project is treated as incurred in the research phase.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Expenditure treated as incurred in the research phase is recognised as an expense when incurred.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"As it cannot distinguish the phases, the entity splits the expenditure equally between expense and asset.","es":""},"correct":false,"feedback":{"fr":"","en":"No equal split is allowed: if the phases cannot be distinguished, all expenditure is treated as research (IAS 38, para. 53), hence expensed (IAS 38, para. 54). A flat-rate split would capitalise a share without any demonstration of development. Rule to remember: indistinguishable phases, no flat-rate partial capitalisation (IAS 38, para. 53).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000220","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES","IAS38.INTERNAL_GENERATION.RESEARCH","IAS38.EXPENSE.PAST_EXPENSES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000220","tested_point":"QST.IAS38.000220","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §53","IAS 38 §54","IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"The Cylvie laboratory has for two years been running an internal project whose exploratory and applied work is so intertwined that it cannot distinguish the two phases. Which of the following consequences are correct?","es":""},"explanation":{"fr":"","en":"As it cannot distinguish the phases, Cylvie treats all the expenditure on the project as incurred in the research phase (IAS 38, para. 53). No intangible asset arising from research is recognised: the expenditure is an expense when incurred (IAS 38, para. 54). Expenditure initially recognised as an expense is not later recognised as part of the cost of an intangible asset (IAS 38, para. 71).","es":""},"common_error":{"fr":"","en":"Capitalising the share of expenditure after a milestone (prototype) while the phases remain indistinguishable.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"All the expenditure on the project is treated as incurred in the research phase.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The portion of expenditure incurred after a first prototype is built is capitalised.","es":""},"correct":false,"feedback":{"fr":"","en":"The prototype does not create a separation: as long as the phases remain indistinguishable, all expenditure on the project is treated as research (IAS 38, para. 53), hence expensed (IAS 38, para. 54). Capitalising the share after the first prototype would require a distinction of phases that Cylvie cannot establish. Rule to remember: a project milestone does not replace the distinction between phases (IAS 38, para. 53).","es":""}},{"id":"C","text":{"fr":"","en":"The project expenditure is recognised as an expense when incurred.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"If the phases later become distinguishable, the expenditure already expensed is reinstated in the cost of an intangible asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Expenditure initially recognised as an expense is not subsequently recognised as part of the cost of an intangible asset (IAS 38, para. 71). Even if the phases become distinguishable later, the expenditure already expensed is not reinstated. Rule to remember: an expense of the past does not become an asset again (IAS 38, para. 71).","es":""}},{"id":"E","text":{"fr":"","en":"No intangible asset is recognised for the project expenditure incurred so far.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The expenditure is capitalised, then impaired at the reporting date if the project looks compromised.","es":""},"correct":false,"feedback":{"fr":"","en":"This expenditure is not carried in assets: treated as research, it is expensed when incurred (IAS 38, paras. 53 and 54). There is therefore nothing to impair at the reporting date: capitalising and then impairing would amount to recognising an asset that the standard does not allow for research. Rule to remember: research is expensed as soon as it is incurred, not capitalised and then impaired (IAS 38, para. 54).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000221","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES","IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000221","tested_point":"QST.IAS38.000221","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §53","IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"The software publisher Quorlis is developing a recommendation engine using an iterative method: each work cycle mixes exploratory work and applied programming, and the time spent is not split between the two. The year's expenditure amounts to 420,000. The finance director proposes capitalising 40% of this amount, the portion he estimates relates to development. What do you recommend?","es":""},"explanation":{"fr":"","en":"As time is not split, Quorlis cannot distinguish the research phase from the development phase: all the expenditure on the project is treated as incurred in the research phase (IAS 38, para. 53). It is recognised as an expense when incurred (IAS 38, para. 54). The 40% estimate does not replace an actual distinction between the phases.","es":""},"common_error":{"fr":"","en":"Capitalising an estimated share of the expenditure with no tracking that separates research from development.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Accept: a reasonable estimate of the development portion is enough to capitalise 168,000.","es":""},"correct":false,"feedback":{"fr":"","en":"An overall 40% estimate does not demonstrate the distinction between phases: since time is not allocated, Quorlis cannot distinguish research from development, and all expenditure is treated as research (IAS 38, para. 53). The 168,000 cannot therefore be capitalised. Rule to remember: an estimate does not replace an actual distinction between phases (IAS 38, para. 53).","es":""}},{"id":"B","text":{"fr":"","en":"Recognise the 420,000 as an expense, as all the expenditure falls under the research phase.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Capitalise the 420,000, as the engine is intended to be used by the entity in its products.","es":""},"correct":false,"feedback":{"fr":"","en":"The intended use of the engine in the entity's own products is not enough to capitalise: with no distinction between phases, the 420,000 is treated as research expenditure (IAS 38, para. 53), expensed when incurred (IAS 38, para. 54). Rule to remember: the intended use of the product does not remove the need to distinguish the phases (IAS 38, para. 53).","es":""}},{"id":"D","text":{"fr":"","en":"Capitalise 40% of the amount and recognise a provision for risks on the remaining 60%.","es":""},"correct":false,"feedback":{"fr":"","en":"Neither partial capitalisation nor a provision: the phases being indistinguishable, the 420,000 is research expenditure, hence expensed when incurred (IAS 38, paras. 53 and 54). Capitalising 40% would adopt a flat-rate split that the standard does not allow for indistinguishable phases. Rule to remember: indistinguishable phases, everything is expensed as research (IAS 38, para. 53).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000222","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES","IAS38.EXPENSE.PAST_EXPENSES","IAS38.INTERNAL_GENERATION.COST"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000222","tested_point":"QST.IAS38.000222","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §53","IAS 38 §71","IAS 38 §65"],"exercise":{"prompt":{"fr":"","en":"In 20X1, Melvane could not distinguish the phases of its project for a new industrial adhesive and recognised 250,000 as an expense. In early 20X2, it sets up tracking that clearly separates the two phases; on 1 March 20X2, it demonstrates for the first time all the recognition criteria of the development phase. The technical director asks for the 250,000 of 20X1 to be reclassified as an asset. Which answer is correct?","es":""},"explanation":{"fr":"","en":"In 20X1, as the phases could not be distinguished, the expenditure was treated as incurred in the research phase (IAS 38, para. 53). Expenditure initially recognised as an expense is not later recognised as part of the cost of an intangible asset (IAS 38, para. 71): the 250,000 remain in expense. The cost of the internally generated asset comprises only the expenditure incurred from the date when the criteria are first met, here 1 March 20X2 (IAS 38, para. 65).","es":""},"common_error":{"fr":"","en":"Reclassifying to assets research expenditure expensed the previous year.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Reclassify the 250,000 as an asset, since the phases can now be distinguished.","es":""},"correct":false,"feedback":{"fr":"","en":"Expenditure initially recognised as an expense is not subsequently recognised as part of the cost of an intangible asset (IAS 38, para. 71): the 250,000 of 20X1 stays in expenses, even though the phases are now distinguishable. Rule to remember: the tracking set up in 20X2 has no retroactive effect on the 20X1 expenses (IAS 38, para. 71).","es":""}},{"id":"B","text":{"fr":"","en":"Keep the 250,000 in expense and capitalise only the expenditure incurred from 1 March 20X2.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Reclassify as an asset only the portion of the 250,000 that the new tracking allows to be attributed retrospectively to development.","es":""},"correct":false,"feedback":{"fr":"","en":"Even partial, retrospective reinstatement of past expenses is ruled out: expenditure expensed in 20X1 is not subsequently recognised as part of the cost of an intangible asset (IAS 38, para. 71). The new tracking serves for future expenditure. Rule to remember: expenditure already expensed is not retrospectively attributed to development (IAS 38, para. 71).","es":""}},{"id":"D","text":{"fr":"","en":"Keep the 250,000 in expense, but capitalise all the 20X2 expenditure from 1 January 20X2.","es":""},"correct":false,"feedback":{"fr":"","en":"Capitalising all the 20X2 expenditure from 1 January overlooks that the cost of the asset is the sum of the expenditure incurred from the date the criteria are first met, here 1 March 20X2 (IAS 38, para. 65). The January and February 20X2 expenditure stays in expenses. Rule to remember: capitalisation starts at the date all the criteria are demonstrated (IAS 38, para. 65).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000223","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES","IAS38.INTERNAL_GENERATION.RESEARCH","IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000223","tested_point":"QST.IAS38.000223","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §52","IAS 38 §53","IAS 38 §54","IAS 38 §57"],"exercise":{"prompt":{"fr":"","en":"Pyrene runs two internal projects. For project Alpha, a formal review documents the move from the research phase to the development phase. For project Beta, the work is so intertwined that no separation is possible. Which analysis is correct?","es":""},"explanation":{"fr":"","en":"Each project is analysed by distinguishing the research phase and the development phase (IAS 38, para. 52). For Alpha, research-phase expenditure is an expense (IAS 38, para. 54), and an intangible asset arising from development is recognised only if the entity demonstrates all the criteria (IAS 38, para. 57). For Beta, as the phases cannot be distinguished, all the expenditure is treated as research (IAS 38, para. 53), hence expensed.","es":""},"common_error":{"fr":"","en":"Capitalising all the expenditure on a project as soon as management finds it promising.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Alpha and Beta: all the expenditure is capitalised as soon as management considers the project promising.","es":""},"correct":false,"feedback":{"fr":"","en":"Management's favourable judgement replaces neither the distinction between phases nor the development criteria. For Alpha, an asset arising from development is recognised only if the entity demonstrates all the criteria (IAS 38, para. 57); for Beta, the phases being indistinguishable, everything is treated as research (IAS 38, para. 53), hence expensed (IAS 38, para. 54). Rule to remember: the promising nature of a project is not a recognition criterion (IAS 38, para. 57).","es":""}},{"id":"B","text":{"fr":"","en":"Alpha: all the expenditure expensed; Beta: expenditure split equally between expense and asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Alpha is not wholly expensed: its development phase may give rise to an asset if the entity demonstrates all the criteria (IAS 38, para. 57). As for Beta, no equal split is allowed: the phases being indistinguishable, everything is treated as research (IAS 38, para. 53). Rule to remember: phase-by-phase treatment when the phases are distinguished, everything as research when they are not (IAS 38, paras. 52 and 53).","es":""}},{"id":"C","text":{"fr":"","en":"Alpha: research expensed, development capitalised if the criteria are demonstrated; Beta: all expensed.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Alpha: all the expenditure capitalised from the start of the project; Beta: expenditure capitalised once technical feasibility is demonstrated.","es":""},"correct":false,"feedback":{"fr":"","en":"Alpha's research is expensed (IAS 38, para. 54): capitalising all of its expenditure from the outset would breach the rule. For Beta, technical feasibility is only one of the development criteria (IAS 38, para. 57), and the phases being indistinguishable, everything is treated as research (IAS 38, para. 53). Rule to remember: technical feasibility is not enough to capitalise (IAS 38, para. 57).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000225","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000225","tested_point":"QST.IAS38.000225","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"True or false? The year's research expenditure may be accumulated in an asset account, then expensed at the end of the project if it fails.","es":""},"explanation":{"fr":"","en":"False. Approach: ask when research expenditure reaches profit or loss. No asset is recognised for research: this expenditure is expensed when incurred (IAS 38, para. 54), not deferred until the outcome of the project. Trap: accumulating the expenditure in assets while waiting for the outcome of the project amounts to deferring an expense. Rule to remember: research expenditure is expensed as soon as it is incurred (IAS 38, para. 54).","es":""},"common_error":{"fr":"","en":"Accumulating research expenditure in an asset account while waiting for the outcome of the project.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000226","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000226","tested_point":"QST.IAS38.000226","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"Before the year's financial statements are finalised, you note that the Fenwick laboratory has capitalised, as an asset under construction, 180,000 of expenditure incurred during the research phase of a vaccine project, on the grounds that management considers the development of a product probable. What correction do you propose?","es":""},"explanation":{"fr":"","en":"No intangible asset arising from research or from the research phase of an internal project is recognised: this expenditure is recognised as an expense when incurred (IAS 38, para. 54). The probability of obtaining a product does not change this treatment: the 180,000 must be removed from assets and recognised as an expense.","es":""},"common_error":{"fr":"","en":"Keeping research expenditure in assets because management considers the product likely.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: the probability of a future product justifies keeping the 180,000 as an asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The likelihood that a product will emerge does not allow research expenditure to be capitalised: no asset is recognised for research or for the research phase of an internal project (IAS 38, para. 54). The 180,000 must therefore be corrected. Rule to remember: research-phase expenditure is an expense, whatever the likelihood of a product (IAS 38, para. 54).","es":""}},{"id":"B","text":{"fr":"","en":"Recognise the 180,000 as an expense of the year.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Keep the asset, but amortise it immediately over the expected marketing period of the vaccine.","es":""},"correct":false,"feedback":{"fr":"","en":"There is nothing to amortise: this expenditure should not have been carried in assets, as no asset is recognised for the research phase (IAS 38, para. 54). Amortising it over the vaccine's marketing period would wrongly keep an asset. The correction is to expense it in the year. Rule to remember: research expenditure is not amortised, it is an expense (IAS 38, para. 54).","es":""}},{"id":"D","text":{"fr":"","en":"Keep the asset until the end of the project and impair it only if the vaccine fails.","es":""},"correct":false,"feedback":{"fr":"","en":"Waiting for the outcome of the project amounts to deferring an expense that the standard requires when the expenditure is incurred (IAS 38, para. 54). Research expenditure is not carried in assets, even temporarily, to be impaired if the project fails. Rule to remember: the research expense is recognised when the expenditure is incurred, not at the outcome of the project (IAS 38, para. 54).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000227","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.RESEARCH","IAS38.EXPENSE.PAST_EXPENSES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000227","tested_point":"QST.IAS38.000227","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §54","IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"True or false? When a project moves from the research phase to the development phase, research expenditure expensed in previous years may be reinstated in the cost of the intangible asset.","es":""},"explanation":{"fr":"","en":"False. Approach: follow what happens to research expenditure over time. It is expensed when incurred (IAS 38, para. 54), and expenditure initially recognised as an expense is not subsequently recognised as part of the cost of an intangible asset (IAS 38, para. 71). Trap: believing that moving into development allows the past to be recovered. Rule to remember: a past research expense does not become an asset again, even when the project enters development (IAS 38, paras. 54 and 71).","es":""},"common_error":{"fr":"","en":"Reinstating to assets, on moving into development, the research expenditure of earlier years.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000228","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000228","tested_point":"QST.IAS38.000228","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"How does an entity account for expenditure incurred during the research phase of an internal project?","es":""},"explanation":{"fr":"","en":"No intangible asset arising from research or from the research phase of an internal project is recognised: the expenditure is recognised as an expense when incurred (IAS 38, para. 54).","es":""},"common_error":{"fr":"","en":"Capitalising research expenditure and then amortising it over five years.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an intangible asset, amortised over five years.","es":""},"correct":false,"feedback":{"fr":"","en":"Research gives rise to no asset, hence no amortisation: amortising over five years presupposes an asset has been recognised, which the standard rules out for research expenditure (IAS 38, para. 54). Rule to remember: research expenditure is an expense, with no asset and no amortisation (IAS 38, para. 54).","es":""}},{"id":"B","text":{"fr":"","en":"As an expense, when incurred.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As an asset, if commercial success is probable.","es":""},"correct":false,"feedback":{"fr":"","en":"The probability of commercial success does not allow research to be capitalised: no asset is recognised for research (IAS 38, para. 54). The probability of future benefits matters for other assets, but it does not change the treatment of the research phase. Rule to remember: in the research phase, the probability of success does not allow capitalisation (IAS 38, para. 54).","es":""}},{"id":"D","text":{"fr":"","en":"In a suspense account, until the outcome of the project is known.","es":""},"correct":false,"feedback":{"fr":"","en":"Research expenditure is not deferred in a suspense account: it is expensed when incurred (IAS 38, para. 54), without waiting for the outcome of the project to be known. Rule to remember: the research expense is recognised as soon as the expenditure is incurred (IAS 38, para. 54).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000229","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000229","tested_point":"QST.IAS38.000229","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"In 20X1, Galdor incurs 250,000 of expenditure on an internal project that is still in its research phase. Its business plan nevertheless forecasts a highly profitable product. What amount is recognised as an intangible asset for this project at the end of 20X1?","es":""},"explanation":{"fr":"","en":"As the project is in its research phase, no intangible asset is recognised: the 250,000 is recognised as an expense when incurred (IAS 38, para. 54). The expected profitability of the product has no effect on this treatment.","es":""},"common_error":{"fr":"","en":"Capitalising research expenditure because the business plan forecasts a very profitable product.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Zero.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"250,000, i.e. all the expenditure incurred.","es":""},"correct":false,"feedback":{"fr":"","en":"Research expenditure is not carried in assets: the project being in the research phase, the 250,000 is expensed when incurred (IAS 38, para. 54). A very profitable product in the business plan does not change the nature of the phase. Rule to remember: the expected profitability of a product does not allow research to be capitalised (IAS 38, para. 54).","es":""}},{"id":"C","text":{"fr":"","en":"125,000, i.e. half of the expenditure, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"No partial capitalisation is allowed for research: half, 125,000, cannot be capitalised out of prudence. The 250,000 is expensed when incurred (IAS 38, para. 54), and prudence does not create a half-asset. Rule to remember: research is not capitalised, even in part, out of prudence or otherwise (IAS 38, para. 54).","es":""}},{"id":"D","text":{"fr":"","en":"The present value of the profits expected from the future product.","es":""},"correct":false,"feedback":{"fr":"","en":"The present value of the expected profits of the future product is not a recognisable cost: an intangible asset is measured from expenditure incurred, and no asset is recognised for research (IAS 38, para. 54). Neither the expenditure nor the expected profits are carried in assets at this stage. Rule to remember: in the research phase, no amount is capitalised (IAS 38, para. 54).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000234","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.RESEARCH","IAS38.INTERNAL_GENERATION.COST","IAS38.DISCLOSURE.RD_EXPENSE"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000234","tested_point":"QST.IAS38.000234","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §54","IAS 38 §65","IAS 38 §126"],"exercise":{"prompt":{"fr":"","en":"In 20X1, Ramee incurs 90,000 of research expenditure, 60,000 of development expenditure before the date on which the recognition criteria are first met, and 40,000 of development expenditure after that date. What amount of research and development expenditure recognised as an expense must it disclose in its notes for 20X1?","es":""},"explanation":{"fr":"","en":"Research expenditure is recognised as an expense (IAS 38, para. 54). The cost of the internally generated asset comprises only the expenditure incurred from the date when the criteria are first met (IAS 38, para. 65): the 40,000 is capitalised and the earlier 60,000 remains in expense. The entity discloses the aggregate amount of research and development expenditure recognised as an expense (IAS 38, para. 126): 90,000 + 60,000 = 150,000.","es":""},"common_error":{"fr":"","en":"Disclosing the research expenditure while forgetting the development before the criteria date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"90,000, as only research expenditure is concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"90,000 picks up only the research and forgets the 60,000 of development incurred before the date the criteria are first met. The cost of the asset is the sum of the expenditure incurred from that date (IAS 38, para. 65): the earlier 60,000 stays in expenses and is added to the 90,000 of research (IAS 38, para. 54), i.e. 150,000 to disclose (IAS 38, para. 126). Rule to remember: the disclosure covers all R&D expenditure recognised as an expense (IAS 38, para. 126).","es":""}},{"id":"B","text":{"fr":"","en":"150,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"190,000, i.e. all the project expenditure.","es":""},"correct":false,"feedback":{"fr":"","en":"190,000 takes the whole project expenditure. Yet the 40,000 incurred after the date the criteria are met is capitalised, not expensed (IAS 38, para. 65); it therefore does not enter the R&D expense amount to disclose (IAS 38, para. 126). Rule to remember: the amount disclosed is the R&D expenditure recognised as an expense (IAS 38, para. 126).","es":""}},{"id":"D","text":{"fr":"","en":"100,000, i.e. only the year's development expenditure.","es":""},"correct":false,"feedback":{"fr":"","en":"100,000 adds up the development expenditure of the year (60,000 + 40,000) and forgets the research. Research (90,000) is expensed (IAS 38, para. 54), whereas the 40,000 after the criteria date is capitalised (IAS 38, para. 65): the expense amount is 90,000 + 60,000 = 150,000 (IAS 38, para. 126). Rule to remember: the amount to disclose includes research and the development that was expensed (IAS 38, para. 126).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000235","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA","IAS38.INTERNAL_GENERATION.COST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000235","tested_point":"QST.IAS38.000235","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"development-rule"},"references":["IAS 38 §57","IAS 38 §65"],"exercise":{"prompt":{"fr":"","en":"On 1 June 20X1, Kestra demonstrates all the development-phase criteria for its new management software. Out of prudence, its finance director is considering continuing to expense subsequent development expenditure. Which statement is correct?","es":""},"explanation":{"fr":"","en":"An intangible asset arising from development is recognised once the entity demonstrates all the criteria (IAS 38, para. 57): it is not an option. Its cost comprises the expenditure incurred from the date when the criteria are first met (IAS 38, para. 65), i.e. 1 June 20X1; earlier expenditure remains in expense.","es":""},"common_error":{"fr":"","en":"Treating the capitalisation of development costs as an accounting policy option.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"This is possible: capitalising development costs is an accounting policy option left to the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Capitalising development costs is not an accounting policy option: an asset arising from development is recognised as soon as the entity demonstrates all the criteria (IAS 38, para. 57). The finance director's prudence therefore does not allow the entity to keep expensing this expenditure after 1 June 20X1. Rule to remember: once all the criteria are demonstrated, capitalising development is required (IAS 38, para. 57).","es":""}},{"id":"B","text":{"fr":"","en":"Expenditure incurred from 1 June 20X1 must be capitalised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Expenditure may be capitalised only from the first sale of the software.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard requires probable future economic benefits among the criteria (IAS 38, para. 57), not a sale already made: waiting for the first sale would wrongly delay capitalisation. Expenditure is capitalised from the date all the criteria are first met, here 1 June 20X1 (IAS 38, para. 65). Rule to remember: the first sale is not a recognition criterion (IAS 38, para. 57).","es":""}},{"id":"D","text":{"fr":"","en":"All the project expenditure, including that incurred before 1 June 20X1, must be capitalised.","es":""},"correct":false,"feedback":{"fr":"","en":"The expenditure before 1 June 20X1 is not part of the cost of the asset: cost is the sum of the expenditure incurred from the date the criteria are first met (IAS 38, para. 65). The earlier expenditure stays in expenses. Rule to remember: capitalisation does not go back before the date the criteria are demonstrated (IAS 38, para. 65).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000236","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000236","tested_point":"QST.IAS38.000236","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"development-rule"},"references":["IAS 38 §57"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X1, Lumen reviews its heat pump project: the prototype has passed its endurance tests and a market study documents strong demand. Which of the following facts, if observed at that date, prevent an intangible asset arising from development from being recognised?","es":""},"explanation":{"fr":"","en":"An intangible asset arising from development is recognised only if the entity demonstrates all the criteria: technical feasibility, intention to complete and use or sell, ability to use or sell, probable future economic benefits, adequate resources to complete the development and reliable measurement of the expenditure (IAS 38, para. 57). The lack of financing, of reliable expenditure tracking or of a decision to complete causes a criterion to fail. Filing a patent, a first sale or staying within budget are not among the criteria.","es":""},"common_error":{"fr":"","en":"Thinking that a successful prototype and a market study are enough to capitalise, without checking the six criteria.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No patent has yet been filed for the technology.","es":""},"correct":false,"feedback":{"fr":"","en":"Filing a patent is not one of the development-phase criteria (IAS 38, para. 57): the absence of a patent does not prevent recognising an asset. The criteria concern technical feasibility, intention, ability to use or sell, future benefits, resources and reliable measurement of expenditure. Rule to remember: it is the six criteria of paragraph 57 that condition capitalisation (IAS 38, para. 57).","es":""}},{"id":"B","text":{"fr":"","en":"The financing needed to complete the project has not yet been obtained.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The management system cannot reliably track the project expenditure.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No heat pump has been sold yet.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard requires probable future economic benefits, in particular the existence of a market or the usefulness of the asset (IAS 38, para. 57), not sales already made. The market study documenting solid demand points that way: the absence of a sale at the review date therefore does not prevent capitalisation. Rule to remember: a first sale is not a development criterion (IAS 38, para. 57).","es":""}},{"id":"E","text":{"fr":"","en":"Management has not yet decided to complete the project or to market the heat pump.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The expenditure incurred since the start of the project exceeds the initial budget.","es":""},"correct":false,"feedback":{"fr":"","en":"Exceeding the initial budget is not among the criteria of paragraph 57 and does not, by itself, prevent the criteria from being demonstrated. What matters is that the attributable expenditure can be measured reliably (IAS 38, para. 57). Rule to remember: staying within budget is not a recognition criterion for development (IAS 38, para. 57).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000237","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA","IAS38.INTERNAL_GENERATION.COST"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000403","tested_point":"VG.IAS38.000403","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"development-rule"},"references":["IAS 38 §57","IAS 38 §65"],"exercise":{"prompt":{"fr":"","en":"Arvea is developing energy management software and spends {monthly_cost} on it per month throughout 20X1. It demonstrates all the development-phase criteria for the first time on 1 August 20X1. The period from January to July covers {months_before} months and the period from August to December {months_after} months. Calculate the amount capitalised and the amount recognised as an expense in 20X1.","es":""},"explanation":{"fr":"","en":"Approach: identify the date the six criteria are first demonstrated (1 August 20X1); the cost of the asset comprises the expenditure incurred from that date (IAS 38, paras. 57 and 65). Amount capitalised: 30,000 × 5 months = 150,000. Amount expensed: 30,000 × 7 months = 210,000. Trap: capitalising all twelve months (360,000) or swapping the two periods (210,000 capitalised). Rule to remember: expenditure before the criteria are demonstrated is an expense, expenditure after that date is capitalised (IAS 38, para. 65).","es":""},"common_error":{"fr":"","en":"Capitalising the expenditure of all twelve months (360,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"monthly_cost","value":"30000","unit":"EUR"},{"id":"months_before","value":"7","unit":"MONTHS"},{"id":"months_after","value":"5","unit":"MONTHS"}],"data":[{"label":{"fr":"","en":"Monthly development expenditure","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Months before the criteria date","es":""},"value":"7","unit":"MONTHS"},{"label":{"fr":"","en":"Months from the criteria date","es":""},"value":"5","unit":"MONTHS"}],"steps":[{"id":"CAPITALISED","label":{"fr":"","en":"Amount capitalised in 20X1","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"EXPENSED","label":{"fr":"","en":"Amount recognised as an expense in 20X1","es":""},"answer":210000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CAPITALISED","meaning":{"fr":"","en":"Amount capitalised in 20X1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Monthly development expenditure","es":""},"value":30000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Months from the criteria date","es":""},"value":5,"unit":"MONTHS"}],"result":150000,"unit":"EUR"},{"step":"EXPENSED","meaning":{"fr":"","en":"Amount recognised as an expense in 20X1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Monthly development expenditure","es":""},"value":30000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Months before the criteria date","es":""},"value":7,"unit":"MONTHS"}],"result":210000,"unit":"EUR"}],"rationale":{"fr":"","en":"expenditure before the criteria are demonstrated is an expense, expenditure after that date is capitalised (IAS 38, para. 65).","es":""},"references":["REF.IAS38.57","REF.IAS38.65"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000238","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA","IAS38.INTERNAL_GENERATION.COST"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000403","tested_point":"VG.IAS38.000403","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"development-rule"},"references":["IAS 38 §57","IAS 38 §65"],"exercise":{"prompt":{"fr":"","en":"The manufacturer Selko is developing a new control valve. In 20X2, its development expenditure amounts to {q1_costs} in the first quarter, {q2_costs} in the second, {q3_costs} in the third and {q4_costs} in the fourth. Technical feasibility is demonstrated in April, but the financing needed to complete the project is obtained only on 1 July 20X2; all the other criteria have been demonstrated since the beginning of the year. The project manager wants to capitalise the expenditure from April. Calculate the amount capitalised and the amount recognised as an expense in 20X2.","es":""},"explanation":{"fr":"","en":"Approach: all the criteria must be demonstrated. Technical feasibility is demonstrated in April, but the availability of resources to complete the development is demonstrated from the financing obtained on 1 July 20X2 (IAS 38, para. 57). The cost of the asset comprises the expenditure incurred from that date (IAS 38, para. 65): amount capitalised 62,000 + 48,000 = 110,000; amount expensed 40,000 + 55,000 = 95,000. Trap: capitalising from April, the date of technical feasibility (165,000), although only one criterion is met. Effect on the financial statements: 110,000 appears in assets and 95,000 is charged to the 20X2 profit or loss. Rule to remember: capitalisation starts at the date the last criterion is demonstrated (IAS 38, paras. 57 and 65).","es":""},"common_error":{"fr":"","en":"Capitalising from April, the date of technical feasibility (165,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"q1_costs","value":"40000","unit":"EUR"},{"id":"q2_costs","value":"55000","unit":"EUR"},{"id":"q3_costs","value":"62000","unit":"EUR"},{"id":"q4_costs","value":"48000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"First-quarter expenditure","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Second-quarter expenditure","es":""},"value":"55000","unit":"EUR"},{"label":{"fr":"","en":"Third-quarter expenditure","es":""},"value":"62000","unit":"EUR"},{"label":{"fr":"","en":"Fourth-quarter expenditure","es":""},"value":"48000","unit":"EUR"}],"steps":[{"id":"CAPITALISED","label":{"fr":"","en":"Amount capitalised in 20X2","es":""},"answer":110000,"tolerance":0,"unit":"EUR"},{"id":"EXPENSED","label":{"fr":"","en":"Amount recognised as an expense in 20X2","es":""},"answer":95000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CAPITALISED","meaning":{"fr":"","en":"Amount capitalised in 20X2","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Third-quarter expenditure","es":""},"value":62000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fourth-quarter expenditure","es":""},"value":48000,"unit":"EUR"}],"result":110000,"unit":"EUR","rationale":{"fr":"","en":"The cost of the asset comprises the expenditure incurred from that date (IAS 38, para. 65): amount capitalised 62,000 + 48,000 = 110,000","es":""}},{"step":"EXPENSED","meaning":{"fr":"","en":"Amount recognised as an expense in 20X2","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"First-quarter expenditure","es":""},"value":40000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Second-quarter expenditure","es":""},"value":55000,"unit":"EUR"}],"result":95000,"unit":"EUR"}],"rationale":{"fr":"","en":"capitalisation starts at the date the last criterion is demonstrated (IAS 38, paras. 57 and 65).","es":""},"references":["REF.IAS38.57","REF.IAS38.65"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000241","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA","IAS38.INTERNAL_GENERATION.COST"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000241","tested_point":"QST.IAS38.000241","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"development-rule"},"references":["IAS 38 §57","IAS 38 §65"],"exercise":{"prompt":{"fr":"","en":"Daxio is developing, solely for its own needs, a tool for planning its maintenance, which it has no intention of selling. At 1 March 20X1, a prototype works in real conditions, the board has decided to complete and deploy the tool, the maintenance teams are ready to use it, a study documents the expected cost savings, the budget is funded and the project hours are tracked reliably. The finance director argues that no asset can be recognised because there is no market for the tool. What position do you take?","es":""},"explanation":{"fr":"","en":"The development-phase criteria refer to the intention and ability to use or sell the asset (IAS 38, para. 57): internal use is sufficient, provided the entity also demonstrates technical feasibility, probable future economic benefits (here the documented savings), adequate resources and reliable measurement of the expenditure. All these criteria are demonstrated at 1 March 20X1; the cost of the asset comprises the expenditure incurred from that date (IAS 38, para. 65).","es":""},"common_error":{"fr":"","en":"Refusing to capitalise any development intended for internal use for lack of a market.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No asset: an asset arising from development requires the intention to sell the product on a market.","es":""},"correct":false,"feedback":{"fr":"","en":"An asset arising from development does not presuppose an intention to sell: the criteria concern the intention and ability to use or sell the asset (IAS 38, para. 57). Internal use can be enough, since future economic benefits can take the form of cost savings (IAS 38, para. 17), documented here. Rule to remember: internal use of an asset arising from development is a case covered by the criterion (IAS 38, para. 57).","es":""}},{"id":"B","text":{"fr":"","en":"Capitalise all the project expenditure since its launch, since the tool is intended for internal use.","es":""},"correct":false,"feedback":{"fr":"","en":"Capitalising all the expenditure from the start of the project overlooks that the cost of the asset is the sum of the expenditure incurred from the date the criteria are first met, here 1 March 20X1 (IAS 38, para. 65). The earlier expenditure stays in expenses, even for internal use. Rule to remember: capitalisation starts at the date all the criteria are demonstrated (IAS 38, para. 65).","es":""}},{"id":"C","text":{"fr":"","en":"Capitalise the expenditure incurred from 1 March 20X1.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Capitalise only if a third party agrees to buy a licence for the tool, to prove the future benefits.","es":""},"correct":false,"feedback":{"fr":"","en":"A licence sale to a third party is not required: future benefits can come from using the asset, for example as cost savings (IAS 38, para. 17), and the criterion concerns the usefulness of the asset if used internally (IAS 38, para. 57). Rule to remember: future benefits can be demonstrated by the internal usefulness of the asset, without a sale to a third party (IAS 38, paras. 17 and 57).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000243","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000243","tested_point":"QST.IAS38.000243","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"brands-rule"},"references":["IAS 38 §63"],"exercise":{"prompt":{"fr":"","en":"True or false? A customer list that an entity has built up itself through its sales is not recognised as an intangible asset.","es":""},"explanation":{"fr":"","en":"True. Approach: identify the nature of the item, a customer list built up by the entity itself, then apply the rule for internally generated items. Internally generated brands, publishing titles, mastheads, customer lists and similar items are not recognised as intangible assets (IAS 38, para. 63), as their cost cannot be distinguished from the cost of developing the business as a whole (IAS 38, para. 64). Trap: thinking that a customer list, because it has value, can be recorded as an asset. Rule to remember: an internally generated customer list is not recognised as an asset (IAS 38, para. 63).","es":""},"common_error":{"fr":"","en":"Recording as an asset a customer list built up internally at the cost of the sales efforts incurred.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000244","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000244","tested_point":"QST.IAS38.000244","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"brands-rule"},"references":["IAS 38 §63"],"exercise":{"prompt":{"fr":"","en":"True or false? A newspaper publisher may recognise as an intangible asset the masthead of its daily paper, created internally, at the cost of its graphic design.","es":""},"explanation":{"fr":"","en":"False. Approach: identify the item (the masthead of a newspaper created internally), then apply the rule that covers it. Internally generated mastheads and publishing titles are not recognised as intangible assets (IAS 38, para. 63); the cost of the graphic design does not change this treatment. Trap: believing that a precise, invoiced expense is enough to create an asset. Rule to remember: an internally generated masthead is not recognised as an asset (IAS 38, para. 63).","es":""},"common_error":{"fr":"","en":"Capitalising the masthead of a newspaper created internally at the cost of its graphic design.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000245","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000245","tested_point":"QST.IAS38.000245","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"brands-rule"},"references":["IAS 38 §64","IAS 38 §63"],"exercise":{"prompt":{"fr":"","en":"True or false? Internally generated brands are not recognised notably because their cost cannot be distinguished from the cost of developing the business as a whole.","es":""},"explanation":{"fr":"","en":"True. Approach: look for the reason the standard gives for the absence of recognition. Expenditure incurred to create brands, mastheads or customer lists internally cannot be distinguished from the cost of developing the business as a whole (IAS 38, para. 64); that is why these items are not recognised as intangible assets (IAS 38, para. 63). Trap: attributing the exclusion to a measurement weakness, whereas the standard stresses the impossibility of distinguishing the cost. Rule to remember: the cost of an internal brand cannot be distinguished from the cost of developing the business, hence it is not recognised (IAS 38, paras. 63 and 64).","es":""},"common_error":{"fr":"","en":"Believing that internal brands are excluded because their value would be too uncertain, rather than because their cost cannot be distinguished from the cost of developing the business.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000246","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000246","tested_point":"QST.IAS38.000246","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"brands-rule"},"references":["IAS 38 §63","IAS 38 §64"],"exercise":{"prompt":{"fr":"","en":"True or false? An internally created brand may be recognised as an asset as soon as the expenditure on creating and launching it can be measured reliably.","es":""},"explanation":{"fr":"","en":"False. Approach: check whether the reliability of the amounts is enough, by going back to the rule on brands. Internally generated brands are not recognised as intangible assets (IAS 38, para. 63), because the expenditure cannot be distinguished from the cost of developing the business as a whole (IAS 38, para. 64). Careful tracking of creation and launch costs therefore does not lift this exclusion. Trap: confusing \"measurable amount\" with \"recognisable asset\". Rule to remember: being able to measure the expenditure on an internal brand does not make it recognisable (IAS 38, para. 63).","es":""},"common_error":{"fr":"","en":"Capitalising an internal brand because the creation and launch costs are well tracked and quantified.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000247","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000247","tested_point":"QST.IAS38.000247","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"brands-rule"},"references":["IAS 38 §63","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"Pellia creates its own clothing brand: logo design by a graphic designer and launch advertising campaigns. How does it treat the brand thus generated internally?","es":""},"explanation":{"fr":"","en":"Internally generated brands are not recognised as intangible assets (IAS 38, para. 63). Advertising and promotional expenditure is recognised as an expense (IAS 38, para. 69).","es":""},"common_error":{"fr":"","en":"Capitalising the brand at the cost of the logo and the launch campaigns.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises it as an asset at the cost of the logo and the campaigns.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer recognises the brand as an asset at the cost of the logo and the campaigns, which is the typical error. An internally generated brand is not recognised as an intangible asset (IAS 38, para. 63), and advertising and promotion are expensed (IAS 38, para. 69). For Pellia, the logo and launch campaigns therefore open no line in assets. Rule to remember: the cost of creating and launching an internal brand is not an intangible asset (IAS 38, paras. 63 and 69).","es":""}},{"id":"B","text":{"fr":"","en":"It does not recognise it; the expenditure is expensed.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It recognises it as an asset at its fair value, estimated by a specialist firm.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer assumes that a fair value estimated by a specialist firm would allow the brand to be recognised. But the rule depends on the origin of the brand, not on whether it can be estimated: an internally generated brand is not recognised (IAS 38, para. 63), because its cost cannot be distinguished from the cost of developing the business (IAS 38, para. 64). The valuation would give a figure, not an asset. Rule to remember: an estimate of an internal brand is not enough to recognise it (IAS 38, para. 63).","es":""}},{"id":"D","text":{"fr":"","en":"It recognises it as an asset only after three years of profitable sales.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adds a condition absent from the standard: three years of profitable sales. Neither profitability nor age appears in the rule: an internally generated brand is not recognised (IAS 38, para. 63), as its cost cannot be distinguished from the cost of developing the business (IAS 38, para. 64). After those three years, Pellia's brand is still outside the statement of financial position. Rule to remember: commercial success does not make an internal brand recognisable (IAS 38, para. 63).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000248","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000248","tested_point":"QST.IAS38.000248","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"brands-rule"},"references":["IAS 38 §63","IAS 38 §27"],"exercise":{"prompt":{"fr":"","en":"Corvel buys from a third party, for 400,000, the brand of a range of biscuits; this brand meets the recognition criteria for an intangible asset. In the same year, it launches a second brand, Doria, designed by its own teams, on which it spends 150,000 on design and advertising. Which statement is correct?","es":""},"explanation":{"fr":"","en":"The cost of a separately acquired intangible asset comprises its purchase price (IAS 38, para. 27): the purchased brand, which meets the criteria according to the question, is recognised at 400,000. However, internally generated brands are not recognised as intangible assets (IAS 38, para. 63): the 150,000 spent on Doria is not capitalised.","es":""},"common_error":{"fr":"","en":"Applying to the internally created brand the treatment of the purchased brand and capitalising it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both brands are recognised as assets, at 400,000 and 150,000 respectively.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer treats both brands alike. Yet their origin differs: the purchased brand is recognised at cost, which includes the purchase price (IAS 38, para. 27), whereas Doria, designed by Corvel's own teams, is internally generated and not recognised (IAS 38, para. 63). The 150,000 of design and advertising therefore do not go to assets. Rule to remember: a separately acquired brand is recognised at cost, an internal brand is not (IAS 38, paras. 27 and 63).","es":""}},{"id":"B","text":{"fr":"","en":"The purchased brand is recognised at 400,000; Doria is not recognised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Neither brand is recognised, because a brand is never an intangible asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer extends the exclusion to all brands. Yet the question states that the purchased brand meets the criteria: it is measured at cost, i.e. 400,000 (IAS 38, para. 27). The exclusion applies to internally generated brands, such as Doria (IAS 38, para. 63). Rule to remember: buying a brand makes it recognisable, creating it internally does not (IAS 38, paras. 27 and 63).","es":""}},{"id":"D","text":{"fr":"","en":"The purchased brand is recognised at 400,000 and Doria at its fair value at the date of its launch.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer recognises Doria at its fair value at the launch date, as if it had been acquired. Doria was not purchased: it is internally generated and not recognised (IAS 38, para. 63), as its cost cannot be distinguished from that of developing the business (IAS 38, para. 64). The asset recognised is the purchased brand, for 400,000 (IAS 38, para. 27). Rule to remember: an estimated fair value does not replace an acquisition when recognising a brand (IAS 38, para. 63).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000249","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000249","tested_point":"QST.IAS38.000249","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"brands-rule"},"references":["IAS 38 §63","IAS 38 §64","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"Through its loyalty programme, Ondine has built up internally a file of 80,000 customers, which a consultant values at 600,000. To recruit these customers, it spent 90,000 on promotional campaigns. What amount is recognised as an intangible asset for this file?","es":""},"explanation":{"fr":"","en":"Internally generated customer lists are not recognised as intangible assets (IAS 38, para. 63), as their cost cannot be distinguished from the cost of developing the business as a whole (IAS 38, para. 64). The 90,000 of promotion is an expense (IAS 38, para. 69). No amount is therefore recognised as an asset.","es":""},"common_error":{"fr":"","en":"Recognising the internally built customer list at the value estimated by an expert.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"600,000, i.e. the value estimated by the consultant.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer uses the 600,000 estimated by the consultant. An estimate, however serious, is not enough: customer lists generated internally are not recognised as intangible assets (IAS 38, para. 63), because their cost cannot be distinguished from that of developing the business (IAS 38, para. 64). Ondine's database is therefore not in assets. Rule to remember: an estimated value does not make an internal customer list an asset (IAS 38, para. 63).","es":""}},{"id":"B","text":{"fr":"","en":"90,000, i.e. the cost of the promotional campaigns.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer capitalises the 90,000 of campaigns used to recruit the customers, i.e. the cost of obtaining the list. But advertising and promotion are expensed (IAS 38, para. 69) and are not the cost of an asset, since the internal customer list is not recognised (IAS 38, para. 63). Rule to remember: what is spent to build a customer list internally is an expense, not an asset (IAS 38, paras. 63 and 69).","es":""}},{"id":"C","text":{"fr":"","en":"Zero.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"690,000, i.e. the estimated value plus the cost of the campaigns.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adds the estimated value (600,000) and the campaign cost (90,000), i.e. 690,000. Neither amount is retained, for the same reason: the list is internally generated and not recognised (IAS 38, para. 63), and promotion is an expense (IAS 38, para. 69). Rule to remember: for an internal customer list, neither an estimated value nor promotion cost goes to assets (IAS 38, paras. 63 and 69).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000250","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS","IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000250","tested_point":"QST.IAS38.000250","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"development-rule"},"references":["IAS 38 §63","IAS 38 §27","IAS 38 §57"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X1, Hestia, a cosmetics group, lists the following items. Which of them are recognised as intangible assets?","es":""},"explanation":{"fr":"","en":"Internally generated brands, publishing titles and customer lists are not recognised as intangible assets (IAS 38, para. 63): the main brand, the customer file and the magazine title are excluded. A separately acquired brand is recognised at cost, which comprises its purchase price (IAS 38, para. 27), and a development project is recognised when the entity demonstrates all the criteria (IAS 38, para. 57).","es":""},"common_error":{"fr":"","en":"Capitalising the main brand because it is old and well known.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The brand of its main range, created by its teams fifteen years ago.","es":""},"correct":false,"feedback":{"fr":"","en":"This option retains the main brand created by Hestia's teams because it is fifteen years old. Age changes nothing: an internally generated brand is not recognised as an intangible asset (IAS 38, para. 63), as its cost cannot be distinguished from that of developing the business (IAS 38, para. 64). Rule to remember: the age of an internal brand does not make it recognisable (IAS 38, para. 63).","es":""}},{"id":"B","text":{"fr":"","en":"A perfume brand bought separately from a competitor and meeting the recognition criteria.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The customer file built up from the sales on its website.","es":""},"correct":false,"feedback":{"fr":"","en":"This list was built by Hestia from its website sales: it is an internally generated customer list, not recognised (IAS 38, para. 63). Building it from real sales does not turn it into an asset, as its cost cannot be distinguished from that of the business (IAS 38, para. 64). Rule to remember: an internally generated customer list is not recognised (IAS 38, para. 63).","es":""}},{"id":"D","text":{"fr":"","en":"A project for a new formula for which all the development-phase criteria are demonstrated.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The title of its beauty advice magazine, launched and developed internally.","es":""},"correct":false,"feedback":{"fr":"","en":"The beauty-advice magazine, launched and developed internally, is an internally generated publishing title: it is not recognised (IAS 38, para. 63). It should not be put on the same footing as the purchased perfume brand, which meets the criteria and is recognised at cost (IAS 38, para. 27). As a result, the magazine's expenditure does not appear in Hestia's assets. Rule to remember: internal publishing title: not recognised (IAS 38, para. 63).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000251","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR","IAS38.EXPENSE.EXPENSE_ITEMS","IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000251","tested_point":"QST.IAS38.000251","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §63","IAS 38 §64","IAS 38 §69","IAS 38 §48"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about internally generated brands, titles and customer lists are correct?","es":""},"explanation":{"fr":"","en":"Internally generated brands, publishing titles, mastheads, customer lists and items similar in substance are not recognised as intangible assets (IAS 38, para. 63), because their cost cannot be distinguished from the cost of developing the business as a whole (IAS 38, para. 64). Advertising and promotional expenditure is an expense (IAS 38, para. 69). Internally generated goodwill is not recognised either (IAS 38, para. 48).","es":""},"common_error":{"fr":"","en":"Assuming that a valuation or a legal registration is enough to recognise an internal brand.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are recognised as assets as soon as an expert reliably estimates their value.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement assumes that a reliable valuation by an expert is enough to recognise these items. That is not the criterion: internally generated brands, titles and customer lists are not recognised as intangible assets (IAS 38, para. 63), because their cost cannot be distinguished from that of developing the business (IAS 38, para. 64). Rule to remember: a reliable valuation does not make these internal items recognisable (IAS 38, para. 63).","es":""}},{"id":"B","text":{"fr":"","en":"They are not recognised as intangible assets.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Their cost cannot be distinguished from the cost of developing the business as a whole.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The legal registration of an internally created brand is enough to make it recognisable.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement gives a role to the legal registration of the brand. Yet the rule covers internally generated brands, and registration is not a criterion that would make them recognisable (IAS 38, para. 63). Registering a trademark does not change the fact that the creation cost cannot be distinguished from that of the business (IAS 38, para. 64). Rule to remember: registering an internal brand does not make it recognisable (IAS 38, para. 63).","es":""}},{"id":"E","text":{"fr":"","en":"Advertising and promotional expenditure incurred to make them known is recognised as an expense.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"As they are not recognised separately, they are grouped in an internally generated goodwill recognised as an asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement carries these items into an internally generated goodwill recognised as an asset. Yet internally generated goodwill is not recognised either (IAS 38, para. 48): not recognising these items does not mean placing them in another asset. Rule to remember: internal brand or internal goodwill: neither is recognised as an asset (IAS 38, paras. 48 and 63).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000252","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000252","tested_point":"QST.IAS38.000252","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"brands-rule"},"references":["IAS 38 §63","IAS 38 §64"],"exercise":{"prompt":{"fr":"","en":"The cosmetics manufacturer Aldea has spent 2,400,000 over three years creating and promoting its Solene brand, which has become very well known. A firm now values the brand at 9,000,000. The finance director proposes recognising it as an asset, either at its cost or at its estimated value. What is your answer?","es":""},"explanation":{"fr":"","en":"Solene is an internally generated brand: it is not recognised as an intangible asset (IAS 38, para. 63), because the expenditure on creating it cannot be distinguished from the cost of developing the business as a whole (IAS 38, para. 64). Neither the accumulated 2,400,000 of expenditure nor the 9,000,000 estimate allows it to be recognised as an asset.","es":""},"common_error":{"fr":"","en":"Proposing to capitalise the brand at the cumulative cost of its campaigns.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise the brand at 2,400,000, the reliable amount of expenditure incurred.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer recognises the brand at 2,400,000, the reliable amount of cumulative expenditure. Reliability of the amount is not enough: Solène is an internally generated brand, not recognised (IAS 38, para. 63), as its expenditure cannot be distinguished from the cost of developing the business (IAS 38, para. 64). The 2,400,000 of creation and promotion does not form an asset. Rule to remember: accumulating the expenditure on an internal brand does not make it an asset (IAS 38, para. 63).","es":""}},{"id":"B","text":{"fr":"","en":"Recognise the brand at 9,000,000, the value estimated by the firm.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer uses the 9,000,000 value estimated by the firm. High awareness and an external valuation do not turn an internal brand into an asset (IAS 38, para. 63); moreover, the revaluation model does not allow an intangible asset to be initially recognised at an amount other than its cost (IAS 38, para. 76). Rule to remember: an estimated value does not entitle an internal brand to recognition (IAS 38, paras. 63 and 76).","es":""}},{"id":"C","text":{"fr":"","en":"Do not recognise the brand, which is internally generated.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Recognise the brand at 2,400,000 and a revaluation surplus of 6,600,000 in equity.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer chains two errors: recognising the brand at 2,400,000, then booking a revaluation surplus of 6,600,000 (9,000,000 − 2,400,000). The revaluation model does not allow an intangible asset that was never recognised to be revalued (IAS 38, para. 76), and Solène is not recognised (IAS 38, para. 63). Rule to remember: with no recognised asset, there is nothing to revalue (IAS 38, para. 76).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000253","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR","IAS38.RECOGNITION.SUBSEQUENT_EXPENDITURE","IAS38.OTHER_ACQUISITIONS.BUSINESS_COMBINATION"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000253","tested_point":"QST.IAS38.000253","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"subsequent-expenditure"},"references":["IAS 38 §63","IAS 38 §20","IAS 38 §33"],"exercise":{"prompt":{"fr":"","en":"In 20X1, the Tessin group acquires Brivo in a business combination; the Brivo brand is recognised at its fair value at the acquisition date, i.e. 1,200,000. In 20X2, Tessin spends 300,000 on advertising campaigns to relaunch the Brivo brand and 200,000 to promote its own Tessin brand, created internally. Which treatment is correct in 20X2?","es":""},"explanation":{"fr":"","en":"The Brivo brand was recognised in the business combination at its fair value at the acquisition date (IAS 38, para. 33), as the question states. Subsequent expenditure on brands is always recognised in profit or loss (IAS 38, para. 20): the 300,000 is not added to its carrying amount. The internally generated Tessin brand is not recognised (IAS 38, para. 63): the 200,000 is an expense. Total expense: 300,000 + 200,000 = 500,000.","es":""},"common_error":{"fr":"","en":"Adding to the carrying amount of an acquired brand the relaunch expenditure incurred afterwards.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Add 300,000 to the carrying amount of the Brivo brand and recognise the Tessin brand as an asset at 200,000.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer combines two errors. The 300,000 of relaunch spend is not added to Brivo's carrying amount: subsequent expenditure on brands, even acquired ones, is recognised in profit or loss (IAS 38, para. 20). And the Tessin brand, internally generated, is not recognised (IAS 38, para. 63), so its 200,000 does not go to assets. With this answer, 20X2 profit would be overstated by 500,000. Rule to remember: subsequent expenditure on an acquired brand and the creation of an internal brand are expenses (IAS 38, paras. 20 and 63).","es":""}},{"id":"B","text":{"fr":"","en":"Recognise the 500,000 as an expense; only the Brivo brand is recognised as an asset.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Add 300,000 to the carrying amount of the Brivo brand and recognise 200,000 as an expense.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer treats the 200,000 of Tessin correctly but adds the 300,000 of relaunch spend to Brivo's carrying amount. Yet subsequent expenditure on brands, acquired ones included, is recognised in profit or loss (IAS 38, para. 20): Brivo's initial cost is its fair value at the acquisition date (IAS 38, para. 33), and the relaunch does not increase it. 20X2 profit would be overstated by 300,000. Rule to remember: a relaunch campaign for an acquired brand is an expense (IAS 38, para. 20).","es":""}},{"id":"D","text":{"fr":"","en":"Derecognise the Brivo brand to align it with the treatment of the Tessin brand and expense everything.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer derecognises Brivo to align it with Tessin. The difference in treatment is nevertheless normal: Brivo was acquired in a business combination and recognised at its fair value at the acquisition date (IAS 38, para. 33), whereas Tessin, internally generated, is not recognised (IAS 38, para. 63). Nothing in the facts justifies removing Brivo from assets. Rule to remember: an acquired brand is recognised, an internal brand is not (IAS 38, paras. 33 and 63).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000254","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000254","tested_point":"QST.IAS38.000254","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Orbelis internally develops scheduling software; the recognition criteria have been met for several months. Which of the following expenditures, incurred after that date, is part of the cost of the intangible asset?","es":""},"explanation":{"fr":"","en":"The cost of an internally generated intangible asset comprises directly attributable costs, including amortisation of patents and licences used to generate the asset (IAS 38, para. 66). Staff training, selling costs and initial operating losses are not part of it (IAS 38, para. 67).","es":""},"common_error":{"fr":"","en":"Thinking that everything surrounding the launch of the software increases its cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Training the technicians who will operate the software.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer includes in the cost the training of the technicians who will operate the software. It is not a cost needed to create and prepare the asset: staff training is excluded from the cost of an internally generated asset (IAS 38, para. 67). The cost comprises directly attributable items, such as the amortisation of a licence used to generate the asset (IAS 38, para. 66). Rule to remember: training users is not part of the cost of the asset (IAS 38, para. 67).","es":""}},{"id":"B","text":{"fr":"","en":"Amortisation of a licence used to develop it.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Selling costs incurred to prepare its marketing.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer includes the selling costs incurred to prepare the commercialisation. They do not serve to create or produce the software: selling costs are excluded from the cost (IAS 38, para. 67). The cost brings together expenditure directly attributable to creating the asset, such as materials, services, employee benefits or amortisation of licences used (IAS 38, para. 66). Rule to remember: selling costs are not a cost of creating the asset (IAS 38, para. 67).","es":""}},{"id":"D","text":{"fr":"","en":"Operating losses recorded when it is first run.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer includes the operating losses recognised when the software starts up. They result from initial operation, not from creating the asset, and are expressly excluded from the cost (IAS 38, para. 67). The cost comprises what is directly attributable to creating, producing and preparing the asset, for example the amortisation of a licence used (IAS 38, para. 66). Rule to remember: start-up losses are not added to the cost of the asset (IAS 38, para. 67).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000255","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000255","tested_point":"QST.IAS38.000255","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Vectane, a laboratory, is developing a manufacturing process for a vaccine; the recognition criteria of the development phase are met. Which of the following expenditures must be excluded from the cost of the intangible asset?","es":""},"explanation":{"fr":"","en":"Identified inefficiencies are expressly excluded from the cost of an internally generated intangible asset (IAS 38, para. 67). Employee benefits of assigned staff, materials and services consumed and fees to register a legal right are, on the contrary, directly attributable costs (IAS 38, para. 66).","es":""},"common_error":{"fr":"","en":"Including the cost of waste because it is incurred during the project.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Salaries of the chemists assigned full time to the process.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer excludes the salaries of the chemists assigned full time to the process. Yet employee benefits arising from producing the asset are directly attributable costs, which are included in the cost (IAS 38, para. 66). What is excluded is identified inefficiencies (IAS 38, para. 67). Rule to remember: staff assigned to creating the asset form part of its cost (IAS 38, para. 66).","es":""}},{"id":"B","text":{"fr":"","en":"Reagents and laboratory services consumed by the project.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer excludes the laboratory reagents and services consumed by the project. Materials and services used or consumed to generate the asset are, however, directly attributable costs (IAS 38, para. 66). The item to exclude is the one that does not help create the asset: the cost of inefficiencies (IAS 38, para. 67). Rule to remember: materials and services consumed by the project: included in the cost (IAS 38, para. 66).","es":""}},{"id":"C","text":{"fr":"","en":"Fees paid to register the patent protecting the process.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer excludes the fees paid to register the patent. Fees to register a legal right are, on the contrary, cited among the directly attributable costs of an internally generated asset (IAS 38, para. 66). The cost of batches rejected because of identified inefficiencies is the item excluded (IAS 38, para. 67). Rule to remember: the fees to register the legal right are included in the cost (IAS 38, para. 66).","es":""}},{"id":"D","text":{"fr":"","en":"The cost of batches rejected because of identified inefficiencies.","es":""},"correct":true}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000256","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000256","tested_point":"QST.IAS38.000256","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Which of the following expenditures, incurred after the date on which an internal project meets the recognition criteria, are part of the cost of the intangible asset? More than one answer may be correct.","es":""},"explanation":{"fr":"","en":"Cost comprises directly attributable expenditure: materials and services consumed, employee benefits and fees to register a legal right (IAS 38, para. 66). Administrative and general overheads that are not directly attributable, and staff training, are excluded (IAS 38, para. 67).","es":""},"common_error":{"fr":"","en":"Including overheads allocated by the cost accounting system.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A share of general administrative overheads with no direct link to the project.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer includes a share of general administrative costs with no direct link to the project. The costs directly attributable to creating the asset are included; general and administrative expenses that are not directly attributable are excluded (IAS 38, para. 67). An allocation by cost accounting does not create that direct link. Rule to remember: general overheads that are not directly attributable are outside the cost (IAS 38, para. 67).","es":""}},{"id":"B","text":{"fr":"","en":"Employee benefits of staff directly assigned to the project.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Training of the employees who will use the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer includes the training of the employees who will use the asset. This cost does not serve to create the asset but to allow it to be used: staff training is excluded from the cost (IAS 38, para. 67). The expenditure included in the cost is that directly attributable to creating it, such as services consumed (IAS 38, para. 66). Rule to remember: training users is outside the cost of the asset (IAS 38, para. 67).","es":""}},{"id":"D","text":{"fr":"","en":"External services consumed in generating the asset.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Fees to register the legal right obtained.","es":""},"correct":true}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000257","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000257","tested_point":"QST.IAS38.000257","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §65","IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Lunastra, a media group, is developing a streaming platform. The controller prepares the list of project expenditures to be left out of the cost of the intangible asset. Which ones must be left out? More than one answer may be correct.","es":""},"explanation":{"fr":"","en":"Cost includes only expenditure incurred from the date on which the criteria are first met (IAS 38, para. 65), limited to directly attributable costs such as salaries of assigned staff or amortisation of a licence used (IAS 38, para. 66). Selling costs, overheads that are not directly attributable and staff training are excluded (IAS 38, para. 67).","es":""},"common_error":{"fr":"","en":"Forgetting to leave out expenditure incurred before the criteria date.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Developers' salaries incurred after the criteria date.","es":""},"correct":false,"feedback":{"fr":"","en":"This option takes out of the cost the developers' salaries incurred after the criteria date. Yet these employee benefits arising from producing the asset are directly attributable (IAS 38, para. 66) and remain in the cost of the platform, from the date the criteria are met (IAS 38, para. 65). For the Lunastra group, they are therefore in assets. Rule to remember: salaries directly linked to development, incurred after the criteria date, are in the cost (IAS 38, paras. 65 and 66).","es":""}},{"id":"B","text":{"fr":"","en":"The promotional campaign announcing the launch of the platform.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Amortisation of a codec licence used for the development.","es":""},"correct":false,"feedback":{"fr":"","en":"This option takes out of the cost the amortisation of the codec licence, treating it as a current expense. Yet amortisation of patents and licences used to generate the asset is a directly attributable cost that forms part of the cost (IAS 38, para. 66). It therefore feeds the carrying amount of the platform rather than profit or loss. Rule to remember: amortisation of a licence used to generate the asset is in its cost (IAS 38, para. 66).","es":""}},{"id":"D","text":{"fr":"","en":"Training the support teams who will operate the platform.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A share of head office costs that are not directly attributable.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"Project expenditure incurred before the criteria were met.","es":""},"correct":true}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000258","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000501","tested_point":"VG.IAS38.000501","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Brevalis is developing diagnostic software that has met the recognition criteria since the beginning of the year. During the year, it incurs {materials_services} of materials and services consumed by the project, {developer_costs} of employee benefits for the assigned developers, {patent_amortisation} of amortisation of a patent used to design the software, {user_training} of training for future users and {sales_brochures} of sales brochures. What is the cost of the intangible asset at year end?","es":""},"explanation":{"fr":"","en":"Approach: sort each expense according to whether it is directly attributable to creating the software. The items retained are materials and services consumed, the developers' employee benefits and the amortisation of the patent used (IAS 38, para. 66): 64,000 + 210,000 + 12,000 = 286,000. The training of future users (9,000) and the sales brochures (7,000) are excluded from the cost (IAS 38, para. 67). Trap: adding those two lines because they accompany the project, or forgetting the amortisation of the patent. Rule to remember: the cost brings together expenditure directly attributable to creating the asset, excluding training and selling costs (IAS 38, paras. 66 and 67).","es":""},"common_error":{"fr":"","en":"Adding user training (295,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"materials_services","value":"64000","unit":"EUR"},{"id":"developer_costs","value":"210000","unit":"EUR"},{"id":"patent_amortisation","value":"12000","unit":"EUR"},{"id":"user_training","value":"9000","unit":"EUR"},{"id":"sales_brochures","value":"7000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Materials and services consumed","es":""},"value":"64000","unit":"EUR"},{"label":{"fr":"","en":"Employee benefits of the developers","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Amortisation of the patent used","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Training of future users","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"Sales brochures","es":""},"value":"7000","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost of the intangible asset","es":""},"answer":286000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTANGIBLE_COST","meaning":{"fr":"","en":"Cost of the intangible asset","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Materials and services consumed","es":""},"value":64000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Employee benefits of the developers","es":""},"value":210000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Amortisation of the patent used","es":""},"value":12000,"unit":"EUR"}],"result":286000,"unit":"EUR","rationale":{"fr":"","en":"The items retained are materials and services consumed, the developers' employee benefits and the amortisation of the patent used (IAS 38, para. 66): 64,000 + 210,000 + 12,000 = 286,000.","es":""}}],"rationale":{"fr":"","en":"the cost brings together expenditure directly attributable to creating the asset, excluding training and selling costs (IAS 38, paras. 66 and 67).","es":""},"references":["REF.IAS38.66","REF.IAS38.67"]}},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000259","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000501","tested_point":"VG.IAS38.000501","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §65","IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Corvane, a chemicals company, is developing a synthesis process. Before the date on which the project first meets the recognition criteria, it incurs {pre_criteria_costs}. Afterwards, it incurs {materials} of materials consumed, {staff_costs} of employee benefits for assigned staff, {registration_fees} of patent registration fees, {licence_amortisation} of amortisation of a technology licence used by the team, {overhead} of overheads that are not directly attributable and {inefficiencies} of losses on failed trials caused by identified inefficiencies. What is the cost of the intangible asset?","es":""},"explanation":{"fr":"","en":"Approach: first fix the starting date, then retain the directly attributable costs after it, then exclude the rest. The cost starts from the date the criteria are first met: the earlier 45,000 is excluded (IAS 38, para. 65). The items retained are materials, employee benefits, registration fees and the amortisation of the licence used (IAS 38, para. 66): 38,000 + 132,000 + 6,000 + 9,000 = 185,000. Overheads (18,000) and identified inefficiencies (11,000) are excluded (IAS 38, para. 67); the remaining 185,000 is in the asset. Trap: including expenditure incurred before the criteria were met. Rule to remember: the cost of an internally generated asset starts at the date the criteria are first met (IAS 38, para. 65).","es":""},"common_error":{"fr":"","en":"Including the expenditure before the criteria date (230,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"pre_criteria_costs","value":"45000","unit":"EUR"},{"id":"materials","value":"38000","unit":"EUR"},{"id":"staff_costs","value":"132000","unit":"EUR"},{"id":"registration_fees","value":"6000","unit":"EUR"},{"id":"licence_amortisation","value":"9000","unit":"EUR"},{"id":"overhead","value":"18000","unit":"EUR"},{"id":"inefficiencies","value":"11000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Expenditure before the criteria date","es":""},"value":"45000","unit":"EUR"},{"label":{"fr":"","en":"Materials consumed","es":""},"value":"38000","unit":"EUR"},{"label":{"fr":"","en":"Employee benefits of assigned staff","es":""},"value":"132000","unit":"EUR"},{"label":{"fr":"","en":"Patent registration fees","es":""},"value":"6000","unit":"EUR"},{"label":{"fr":"","en":"Amortisation of the licence used","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"Overheads not directly attributable","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Losses from identified inefficiencies","es":""},"value":"11000","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost of the intangible asset","es":""},"answer":185000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTANGIBLE_COST","meaning":{"fr":"","en":"Cost of the intangible asset","es":""},"expression":"a + b + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Materials consumed","es":""},"value":38000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Employee benefits of assigned staff","es":""},"value":132000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Patent registration fees","es":""},"value":6000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Amortisation of the licence used","es":""},"value":9000,"unit":"EUR"}],"result":185000,"unit":"EUR","rationale":{"fr":"","en":"The items retained are materials, employee benefits, registration fees and the amortisation of the licence used (IAS 38, para. 66): 38,000 + 132,000 + 6,000 + 9,000 = 185,000.","es":""}}],"rationale":{"fr":"","en":"the cost of an internally generated asset starts at the date the criteria are first met (IAS 38, para. 65).","es":""},"references":["REF.IAS38.65","REF.IAS38.66","REF.IAS38.67"]}},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000260","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000502","tested_point":"VG.IAS38.000502","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §65","IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Ondira develops an online booking platform throughout 20X1. Each month, it incurs {monthly_staff} of employee benefits for staff assigned to the project and {monthly_services} of hosting services consumed by the development. The recognition criteria are first met on 1 September 20X1. In December 20X1, it also incurs {operator_training} to train the agents who will operate the platform. What is the cost of the intangible asset at 31 December 20X1?","es":""},"explanation":{"fr":"","en":"Approach: count the months from the date the criteria are met, then value one month of direct costs. Expenditure incurred from 1 September 20X1 is included in the cost (IAS 38, para. 65), i.e. 4 months (September to December) of directly attributable costs (IAS 38, para. 66): 4 × (15,000 + 4,000) = 76,000. The training of the operating staff (5,000) is excluded from the cost (IAS 38, para. 67). Trap: using the 12 months of the year (228,000) or adding the training (81,000). Rule to remember: the months after the date the criteria are met feed the cost (IAS 38, para. 65).","es":""},"common_error":{"fr":"","en":"Using the 12 months of the year (228,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"monthly_staff","value":"15000","unit":"EUR"},{"id":"monthly_services","value":"4000","unit":"EUR"},{"id":"operator_training","value":"5000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Monthly employee benefits","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Monthly hosting services","es":""},"value":"4000","unit":"EUR"},{"label":{"fr":"","en":"Training of operating agents","es":""},"value":"5000","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost at 31 December 20X1","es":""},"answer":76000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTANGIBLE_COST","meaning":{"fr":"","en":"Cost at 31 December 20X1","es":""},"expression":"4 * (a + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Monthly employee benefits","es":""},"value":15000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Monthly hosting services","es":""},"value":4000,"unit":"EUR"}],"result":76000,"unit":"EUR","rationale":{"fr":"","en":"Expenditure incurred from 1 September 20X1 is included in the cost (IAS 38, para. 65), i.e. 4 months (September to December) of directly attributable costs (IAS 38, para. 66): 4 × (15,000 + 4,000) = 76,000.","es":""}}],"rationale":{"fr":"","en":"the months after the date the criteria are met feed the cost (IAS 38, para. 65).","es":""},"references":["REF.IAS38.65","REF.IAS38.66","REF.IAS38.67"]}},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000261","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000502","tested_point":"VG.IAS38.000502","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §65","IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Stelmar, an engineering firm, develops simulation software in 20X2. The project's direct costs (assigned staff and services consumed) amount to {jan_mar_costs} from January to March, {apr_jun_costs} from April to June, {jul_sep_costs} from July to September and {oct_dec_costs} from October to December. The project first meets the recognition criteria on 1 July 20X2. In the second half-year, the team also uses a computing licence whose amortisation amounts to {licence_amortisation}, and management allocates {overhead} of head office costs that are not directly attributable to the project. What is the cost of the intangible asset at 31 December 20X2?","es":""},"explanation":{"fr":"","en":"Approach: set aside the first half-year, retain the direct costs of the second, then add the licence amortisation and exclude head-office costs. The cost includes expenditure incurred from 1 July 20X2 (IAS 38, para. 65). The items retained are the direct costs of the second half-year and the amortisation of the licence used (IAS 38, para. 66): 80,000 + 88,000 + 5,000 = 173,000. Head-office costs that are not directly attributable (10,000) are excluded (IAS 38, para. 67). Trap: using the whole year (305,000), adding head-office costs (183,000) or forgetting the licence amortisation (168,000). Rule to remember: the cost starts at the criteria date and contains directly attributable costs (IAS 38, paras. 65 and 66).","es":""},"common_error":{"fr":"","en":"Using the costs of the whole year (305,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"jan_mar_costs","value":"60000","unit":"EUR"},{"id":"apr_jun_costs","value":"72000","unit":"EUR"},{"id":"jul_sep_costs","value":"80000","unit":"EUR"},{"id":"oct_dec_costs","value":"88000","unit":"EUR"},{"id":"licence_amortisation","value":"5000","unit":"EUR"},{"id":"overhead","value":"10000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Direct costs January to March","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Direct costs April to June","es":""},"value":"72000","unit":"EUR"},{"label":{"fr":"","en":"Direct costs July to September","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Direct costs October to December","es":""},"value":"88000","unit":"EUR"},{"label":{"fr":"","en":"Amortisation of the computing licence","es":""},"value":"5000","unit":"EUR"},{"label":{"fr":"","en":"Allocated head office costs","es":""},"value":"10000","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost at 31 December 20X2","es":""},"answer":173000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTANGIBLE_COST","meaning":{"fr":"","en":"Cost at 31 December 20X2","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Direct costs July to September","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Direct costs October to December","es":""},"value":88000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Amortisation of the computing licence","es":""},"value":5000,"unit":"EUR"}],"result":173000,"unit":"EUR","rationale":{"fr":"","en":"The items retained are the direct costs of the second half-year and the amortisation of the licence used (IAS 38, para. 66): 80,000 + 88,000 + 5,000 = 173,000.","es":""}}],"rationale":{"fr":"","en":"the cost starts at the criteria date and contains directly attributable costs (IAS 38, paras. 65 and 66).","es":""},"references":["REF.IAS38.65","REF.IAS38.66","REF.IAS38.67"]}},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000264","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.COST"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000264","tested_point":"QST.IAS38.000264","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §65","IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Solvira is developing the control software for a dosing robot. The recognition criteria are first met on 1 March 20X4. Expenditure for 20X4: 30,000 in January and February; then, from March, 180,000 of employee benefits for the assigned engineers, 25,000 of consumables and testing services, 4,000 of patent registration fees, 8,000 of operator training, 14,000 for reworking a faulty module because of identified inefficiencies and 20,000 as a share of head office costs. The CFO asks you for the cost of the intangible asset at 31 December 20X4. Which amount do you retain?","es":""},"explanation":{"fr":"","en":"Cost starts on 1 March 20X4: the earlier 30,000 is excluded (IAS 38, para. 65). The engineers' employee benefits, consumables and testing services and registration fees are directly attributable (IAS 38, para. 66): 180,000 + 25,000 + 4,000 = 209,000. Training, identified inefficiencies and head office costs that are not directly attributable are excluded (IAS 38, para. 67).","es":""},"common_error":{"fr":"","en":"Treating every expenditure incurred during the project as a cost of the asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"239,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 239,000 adds to the cost the 30,000 spent in January and February, before the criteria date (209,000 + 30,000). The cost includes expenditure incurred from the date the criteria are first met, here 1 March (IAS 38, para. 65). The earlier 30,000 is not recognised in assets. Rule to remember: the cost of an internally generated asset does not go back before the criteria date (IAS 38, para. 65).","es":""}},{"id":"B","text":{"fr":"","en":"231,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 231,000 adds to 209,000 the training (8,000) and the 14,000 for reworking a defective module caused by identified inefficiencies. These two items are excluded from the cost of an internally generated asset (IAS 38, para. 67), whereas the engineers' employee benefits, consumables and registration fees are included (IAS 38, para. 66). Rule to remember: training and identified inefficiencies are outside the cost (IAS 38, para. 67).","es":""}},{"id":"C","text":{"fr":"","en":"209,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"251,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 251,000 adds to 209,000 the training (8,000), the inefficiencies (14,000) and the head-office share (20,000), three items excluded from the cost (IAS 38, para. 67). Directly attributable costs after 1 March are included (IAS 38, paras. 65 and 66). In the statement of financial position, the asset would be overstated by 42,000. Rule to remember: training, inefficiencies and head-office costs that are not directly attributable are outside the cost (IAS 38, para. 67).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000265","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000265","tested_point":"QST.IAS38.000265","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"principle"},"references":["IAS 38 §69","IAS 38 §69A","IAS 38 §70"],"exercise":{"prompt":{"fr":"","en":"True or false? Expenditure on an advertising campaign launching a new product, broadcast during the year, is recognised as an expense, even if management expects sales from it over several years.","es":""},"explanation":{"fr":"","en":"True. Approach: ask whether the expenditure creates a recognisable asset or is among the items the standard expenses. Advertising and promotion expenditure is recognised as an expense (IAS 38, para. 69); the hope of future sales is not enough to capitalise it. As the campaign was broadcast during the year, the service has been received: no prepayment remains in assets (IAS 38, paras. 69A and 70). Trap: spreading the expenditure over the period of expected sales. Rule to remember: advertising and promotion are expenses, even if the expected sales extend over several periods (IAS 38, para. 69).","es":""},"common_error":{"fr":"","en":"Capitalising a launch campaign and spreading it over the period of expected sales.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000266","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000266","tested_point":"QST.IAS38.000266","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"principle"},"references":["IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"True or false? The cost of a training programme for sales staff may be recognised as an intangible asset, because the skills acquired will generate future sales.","es":""},"explanation":{"fr":"","en":"False. Approach: identify the nature of the expenditure (training) and match it against the list of expenditure recognised as an expense. Training expenditure is among it (IAS 38, para. 69): the skills acquired by staff are not capitalised, even if they contribute to future sales. Trap: reasoning on the expected future benefit rather than on the nature of the expenditure. Rule to remember: staff training is an expense, not an intangible asset (IAS 38, para. 69).","es":""},"common_error":{"fr":"","en":"Capitalising the cost of staff training on the grounds that it will generate future sales.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000267","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000267","tested_point":"QST.IAS38.000267","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"principle"},"references":["IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"True or false? The costs of relocating the head office to another city, including moving the teams, may be recognised as an intangible asset and amortised over the term of the new lease.","es":""},"explanation":{"fr":"","en":"False. Approach: identify the nature of the expenditure (relocating the head office and moving the teams) and compare it with the expenditure the standard recognises as an expense. Relocation or reorganisation expenditure of all or part of an entity is among it (IAS 38, para. 69). The link with a multi-year lease does not allow it to be spread through amortisation. Trap: treating a move as the acquisition of a lasting right. Rule to remember: relocation and reorganisation are expenses, whatever the length of the new lease (IAS 38, para. 69).","es":""},"common_error":{"fr":"","en":"Capitalising head-office moving costs and spreading them over the term of the new lease.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000268","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS","IAS38.INTERNAL_GENERATION.COST","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000268","tested_point":"QST.IAS38.000268","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §69","IAS 38 §66","IAS 38 §27"],"exercise":{"prompt":{"fr":"","en":"Which of these expenditures is recognised as an expense, with no possibility of being included in the cost of an intangible asset?","es":""},"explanation":{"fr":"","en":"Expenditure on reorganising part or all of an entity is recognised as an expense (IAS 38, para. 69). By contrast, materials consumed and fees to register a legal right are part of the cost of an internally generated asset (IAS 38, para. 66), and the purchase price is part of the cost of a separately acquired asset (IAS 38, para. 27).","es":""},"common_error":{"fr":"","en":"Believing that any internal expenditure is necessarily an expense.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Materials consumed by a development project that meets the criteria.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks the materials consumed by a development project that meets the criteria. Once the criteria are met, these materials are directly attributable costs of the internally generated asset (IAS 38, para. 66): they go into its cost instead of being expenses. The expenditure to be expensed is the reorganisation of a division (IAS 38, para. 69). Rule to remember: materials consumed by a development that meets the criteria are part of the cost of the asset (IAS 38, para. 66).","es":""}},{"id":"B","text":{"fr":"","en":"Consulting fees for the reorganisation of a division.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The purchase price of a licence acquired separately from a third party.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks the purchase price of a licence acquired separately from a third party. It is, on the contrary, the first component of the cost of a separately acquired asset (IAS 38, para. 27): it is capitalised, not expensed. The expenditure that cannot enter an asset's cost is the reorganisation (IAS 38, para. 69). Rule to remember: the purchase price of an acquired licence is part of its cost (IAS 38, para. 27).","es":""}},{"id":"D","text":{"fr":"","en":"Registration fees for a patent arising from internal development.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer picks the registration fees of a patent arising from internal development. Fees to register a legal right are among the directly attributable costs of an internally generated asset (IAS 38, para. 66): they go into the cost. The reorganisation of a division is what is expensed (IAS 38, para. 69). Rule to remember: fees to register a legal right are in the cost of the internally generated asset (IAS 38, para. 66).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000269","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000269","tested_point":"QST.IAS38.000269","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"principle"},"references":["IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"Norvelle group sets up a new subsidiary to start a bicycle rental business. It incurs legal costs to incorporate the company and start-up costs for the business before opening. How is this expenditure treated?","es":""},"explanation":{"fr":"","en":"Expenditure on start-up activities is among the expenditure recognised as an expense (IAS 38, para. 69). Neither spreading it through amortisation nor deferring it until the first revenue is permitted.","es":""},"common_error":{"fr":"","en":"Matching start-up costs with future revenue through amortisation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is recognised as an intangible asset and amortised over five years.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer capitalises the incorporation and start-up costs, then amortises them over five years. Yet start-up costs (legal incorporation, pre-opening) are among the expenditure recognised as an expense and do not give rise to an intangible asset (IAS 38, para. 69). With no asset, there is nothing to amortise. Rule to remember: start-up costs are expenses, not amortisable assets (IAS 38, para. 69).","es":""}},{"id":"B","text":{"fr":"","en":"It is recognised as goodwill in the subsidiary's accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer places these costs in a goodwill of the subsidiary. Goodwill arises from a business combination, and internally generated goodwill is not recognised (IAS 38, para. 48); here, the legal and start-up costs result from no acquisition and are recognised as an expense (IAS 38, para. 69). Rule to remember: start-up costs create neither an asset nor goodwill (IAS 38, paras. 48 and 69).","es":""}},{"id":"C","text":{"fr":"","en":"It is recognised as an expense.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It stays in assets until the first revenue, then is amortised.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer keeps the costs in assets until the first revenues, then amortises them. Start-up expenditure is recognised as an expense as soon as the entity receives the services (IAS 38, para. 69); waiting for the first revenues would defer expenses, which paragraph 69 does not provide for. Rule to remember: start-up costs are not deferred while waiting for revenues (IAS 38, para. 69).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000270","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS","IAS38.INTERNAL_GENERATION.COST","IAS38.SEPARATE_ACQUISITION.COST_COMPONENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000270","tested_point":"QST.IAS38.000270","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §69","IAS 38 §66","IAS 38 §27"],"exercise":{"prompt":{"fr":"","en":"Which of the following expenditures are recognised as an expense? More than one answer may be correct.","es":""},"explanation":{"fr":"","en":"Promotion, training and reorganisation are among the expenditure recognised as an expense (IAS 38, para. 69). Employee benefits of staff assigned to a development that meets the criteria are part of the cost of the internally generated asset (IAS 38, para. 66) and the purchase price is part of the cost of a separately acquired asset (IAS 38, para. 27).","es":""},"common_error":{"fr":"","en":"Classifying all staff costs as expenses, including those of a development that qualifies for capitalisation.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Employee benefits of staff assigned to a development that meets the criteria.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer expenses the employee benefits of staff assigned to a development that meets the criteria. Yet these benefits, arising from producing the asset, are directly attributable costs that go into its cost (IAS 38, para. 66). Promotion, training and reorganisation expenditure, on the other hand, are expenses (IAS 38, para. 69). Rule to remember: staff assigned to a capitalisable development feed the cost of the asset (IAS 38, para. 66).","es":""}},{"id":"B","text":{"fr":"","en":"A promotional campaign in retail outlets.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A training seminar for branch managers.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The purchase price of software bought from a publisher.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer expenses the purchase price of software acquired from a publisher. The purchase price is, however, the first component of the cost of a separately acquired asset (IAS 38, para. 27): it is capitalised. The expenses in the list are promotion, training and reorganisation (IAS 38, para. 69). Rule to remember: the purchase price of a separately acquired asset is in its cost, not an expense (IAS 38, para. 27).","es":""}},{"id":"E","text":{"fr":"","en":"The reorganisation of the logistics department.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000271","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS","IAS38.INTERNAL_GENERATION.COST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000271","tested_point":"QST.IAS38.000271","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §69","IAS 38 §66"],"exercise":{"prompt":{"fr":"","en":"Maraval, a retail chain, launches online sales. During the year, it incurs the expenditure below; the ordering module developed internally has met the recognition criteria since the beginning of the year. Which items are recognised as an expense? More than one answer may be correct.","es":""},"explanation":{"fr":"","en":"Advertising and promotion, relocating part of the entity and training are recognised as an expense (IAS 38, para. 69). The developers' salaries and amortisation of a licence used to generate the module are costs directly attributable to the internally generated asset (IAS 38, para. 66).","es":""},"common_error":{"fr":"","en":"Capitalising the launch campaign together with the module.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A social media campaign announcing the new website.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The salaries of the developers of the ordering module.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer expenses the developers' salaries for the ordering module. The module has met the criteria since the start of the year: the employee benefits of staff directly assigned are directly attributable costs, so included in its cost (IAS 38, para. 66). Rule to remember: the salaries of developers of a module that meets the criteria feed the cost of the asset (IAS 38, para. 66).","es":""}},{"id":"C","text":{"fr":"","en":"Moving the logistics team to a new warehouse.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Training sales staff to manage online orders.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Amortisation of a payment licence used to develop the module.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer expenses the amortisation of the payment licence used to develop the module. Amortisation of a licence used to generate the asset is a directly attributable cost that forms part of the cost (IAS 38, para. 66). It is therefore not an expense of the year but is added to the asset. Rule to remember: amortisation of a licence used to generate an asset goes into its cost (IAS 38, para. 66).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000274","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS","IAS38.INTERNAL_GENERATION.BRANDS_AND_SIMILAR"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000274","tested_point":"QST.IAS38.000274","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"brands-rule"},"references":["IAS 38 §69","IAS 38 §63"],"exercise":{"prompt":{"fr":"","en":"Altivo, a cosmetics company, created its own brand two years ago. In 20X5, it spends 300,000 on advertising and promotion of this brand and 40,000 to train its sales advisers. The CFO proposes to recognise 340,000 as an asset labelled Altivo brand, amortised over five years, because brand awareness has clearly grown. Which position do you take?","es":""},"explanation":{"fr":"","en":"Advertising, promotion and training are recognised as an expense (IAS 38, para. 69). Moreover, an internally generated brand is not recognised as an intangible asset (IAS 38, para. 63). The 340,000 is therefore an expense of 20X5, however much brand awareness has grown.","es":""},"common_error":{"fr":"","en":"Confusing the value of brand awareness with a capitalisable cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Accept the proposal: 340,000 in assets, amortised over five years.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer follows the CFO's proposal: 340,000 in assets, amortised over five years. But advertising, promotion and training are recognised as expenses (IAS 38, para. 69), and an internally generated brand is not recognised as an intangible asset (IAS 38, para. 63). Growing awareness does not create an asset. Rule to remember: whether or not awareness has grown, expenditure on an internal brand is an expense (IAS 38, paras. 63 and 69).","es":""}},{"id":"B","text":{"fr":"","en":"Recognise only the advertising of 300,000 as an asset and expense the training.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer splits advertising, capitalised for 300,000, and training, expensed. The training is correctly treated: advertising is an expense too (IAS 38, para. 69), and it cannot form the cost of an internally generated brand, which is not recognised (IAS 38, para. 63). Rule to remember: advertising and promotion are expenses and do not form the cost of an internal brand (IAS 38, paras. 63 and 69).","es":""}},{"id":"C","text":{"fr":"","en":"Recognise the 340,000 as an expense in 20X5.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Recognise 340,000 as an asset without amortisation, since brand awareness has no foreseeable limit.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer puts 340,000 in assets without amortisation, on the grounds that awareness would have no foreseeable limit. The question of amortisation presupposes that an asset is recognised; here there is none: advertising, promotion and training are expenses (IAS 38, para. 69) and the internal brand is not recognised (IAS 38, para. 63). Rule to remember: before discussing amortisation, an asset has to be recognised (IAS 38, paras. 63 and 69).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000275","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000275","tested_point":"QST.IAS38.000275","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"principle"},"references":["IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"Prisméa, an industrial group, reorganises its packaging division in 20X6: 120,000 of consultants' fees to redesign the organisation and 45,000 to move a team to another site. The board wishes to spread this 165,000 over the three years in which it expects productivity gains. Which treatment complies with IAS 38?","es":""},"explanation":{"fr":"","en":"Expenditure on reorganising or relocating part or all of an entity is recognised as an expense (IAS 38, para. 69). The 165,000 is therefore an expense of 20X6, even though productivity gains are expected over several years.","es":""},"common_error":{"fr":"","en":"Matching reorganisation costs with future gains by spreading them.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise 165,000 as an intangible asset and amortise it over three years.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer capitalises the 165,000 and amortises it over three years, in line with the expected productivity gains. Yet reorganisation or relocation expenditure of all or part of an entity is recognised as an expense (IAS 38, para. 69): it creates no asset to amortise. Rule to remember: reorganisation and relocation are expenses, not assets spread over future gains (IAS 38, para. 69).","es":""}},{"id":"B","text":{"fr":"","en":"Recognise the 165,000 as an expense in 20X6.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Expense the move and capitalise the consultants' fees.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer expenses the team move, which is right, but capitalises the consultants' fees. Yet these fees relate to reorganising the division and are also recognised as an expense (IAS 38, para. 69). The full 165,000 is an expense. Rule to remember: reorganisation fees follow the same treatment as moving the teams (IAS 38, para. 69).","es":""}},{"id":"D","text":{"fr":"","en":"Recognise the fees as an intangible asset that is not amortised, since the gains are lasting.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer puts the fees in assets without amortisation, on the grounds that the gains would be lasting. The durability of expected gains does not change the nature of the expenditure: a reorganisation is recognised as an expense (IAS 38, para. 69), so no asset is recognised. Rule to remember: the length of the gains expected from a reorganisation does not make it an asset (IAS 38, para. 69).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000276","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.PAST_EXPENSES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000276","tested_point":"QST.IAS38.000276","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"True or false? Development expenditure recognised as an expense in 20X1, because the criteria were not met, may be added in 20X2 to the cost of the intangible asset when the project finally meets those criteria.","es":""},"explanation":{"fr":"","en":"False. Approach: find the initial treatment of the expenditure, then apply the rule on expenditure already expensed. Expenditure initially recognised as an expense cannot be recognised later as part of the cost of an intangible asset (IAS 38, para. 71). The 20X1 expenditure remains a 20X1 expense; the cost of the asset runs from the date the criteria are met. Trap: believing that the project's success allows past expenditure to be reinstated. Rule to remember: expenditure already recognised as an expense is not reinstated in the cost of the asset (IAS 38, para. 71).","es":""},"common_error":{"fr":"","en":"Reinstating in the cost of the asset the previous year's development expenditure that was expensed, as soon as the project meets the criteria.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000277","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.PAST_EXPENSES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000277","tested_point":"QST.IAS38.000277","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"Taliora recognised as an expense in 20X1 250,000 of development expenditure on a sensor, as the criteria were not yet met. On 1 February 20X2, the project meets all the criteria for the first time. How is this 250,000 treated in the 20X2 financial statements?","es":""},"explanation":{"fr":"","en":"Expenditure initially recognised as an expense is not later recognised as part of the cost of an intangible asset (IAS 38, para. 71). The 250,000 therefore remains an expense of 20X1: no reversal, no restatement and no deferred reinstatement is permitted.","es":""},"common_error":{"fr":"","en":"Treating the change in the project's situation as an error to be corrected.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is reversed to income in 20X2 and recognised as an asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer reverses the 250,000 into income in 20X2 and capitalises it. That amounts to reinstating in the cost of the asset an expenditure already expensed, which the standard does not allow (IAS 38, para. 71). For Taliora, the 250,000 remains a 20X1 expense and the sensor is recognised from 1 February 20X2. Rule to remember: an expense that has been recognised is not reversed into income to create an asset (IAS 38, para. 71).","es":""}},{"id":"B","text":{"fr":"","en":"The 20X1 comparatives are restated to recognise it as an asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer restates the 20X1 comparatives to capitalise the 250,000. The 20X1 treatment was nevertheless appropriate: the criteria were not met, the expenditure was an expense, and it cannot later be recognised in the cost of the asset (IAS 38, para. 71). There is therefore nothing to restate. Rule to remember: the change in the project's situation does not call into question the previous year's expense (IAS 38, para. 71).","es":""}},{"id":"C","text":{"fr":"","en":"It remains an expense of 20X1 and is not part of the asset's cost.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is added to cost when the sensor is ready for use.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adds the 250,000 to the cost when the sensor is ready for use. Deferring the reinstatement changes nothing: the expenditure has already been expensed and cannot be recognised afterwards in the cost of the asset (IAS 38, para. 71), whatever the date chosen. Rule to remember: the timing of reinstatement is irrelevant: an expense remains an expense (IAS 38, para. 71).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000278","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.PAST_EXPENSES","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000505","tested_point":"VG.IAS38.000505","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §71","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"Keldar is developing marine navigation software. In 20X1, as the criteria were not met, it recognised {prior_year_expensed} of development expenditure as an expense. The criteria have been met since 1 January 20X2; in 20X2, it incurs {current_year_costs} of costs directly attributable to the software and {launch_advertising} of advertising for its launch. Management wishes to recognise as an asset all the project expenditure since its inception. What is the cost of the intangible asset at 31 December 20X2?","es":""},"explanation":{"fr":"","en":"Approach: set aside what has already been expensed, then retain the directly attributable costs of the year. The 180,000 of 20X1, recognised as an expense, is not reinstated in the cost (IAS 38, para. 71), and the launch advertising (12,000) is an expense (IAS 38, para. 69). The cost is limited to the 260,000 of directly attributable costs of 20X2. Trap: reinstating 20X1 (440,000) or adding the advertising (272,000) in order to \"capitalise everything\". Rule to remember: a past expense does not come back into the cost, and advertising does not enter it (IAS 38, paras. 69 and 71).","es":""},"common_error":{"fr":"","en":"Reinstating the 20X1 expenditure (440,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"prior_year_expensed","value":"180000","unit":"EUR"},{"id":"current_year_costs","value":"260000","unit":"EUR"},{"id":"launch_advertising","value":"12000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"20X1 expenditure recognised as an expense","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Directly attributable costs of 20X2","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Launch advertising","es":""},"value":"12000","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost at 31 December 20X2","es":""},"answer":260000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000279","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.PAST_EXPENSES","IAS38.INTERNAL_GENERATION.COST"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000505","tested_point":"VG.IAS38.000505","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §71","IAS 38 §65","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Velmora is designing software for medical devices. In 20X1, it recognised as an expense {research_20x1} of research and {development_20x1} of development. In 20X2, the project first meets the recognition criteria on 1 June: it cost {pre_criteria_20x2} from January to May, then {post_criteria_20x2} of directly attributable costs from June to December. In December 20X2, Velmora also incurs {user_training} to train hospital users. The CFO proposes to recognise as an asset all project expenditure since 20X1. What is the cost of the intangible asset at 31 December 20X2?","es":""},"explanation":{"fr":"","en":"Approach: locate the date the criteria are first met, then set aside what precedes it and what is excluded. The 20X1 expenditure (90,000 + 140,000), already expensed, is not reinstated in the cost (IAS 38, para. 71). The cost includes expenditure incurred from 1 June 20X2 (IAS 38, para. 65): the 70,000 from January to May is therefore excluded, as is the users' training (IAS 38, para. 67). It amounts to 210,000. Trap: reinstating 20X1 (440,000), adding January-May (280,000) or the training (225,000). Rule to remember: the cost of an internally generated asset does not go back before the criteria date (IAS 38, paras. 65 and 71).","es":""},"common_error":{"fr":"","en":"Reinstating the 20X1 expenditure (440,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"research_20x1","value":"90000","unit":"EUR"},{"id":"development_20x1","value":"140000","unit":"EUR"},{"id":"pre_criteria_20x2","value":"70000","unit":"EUR"},{"id":"post_criteria_20x2","value":"210000","unit":"EUR"},{"id":"user_training","value":"15000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"20X1 research recognised as an expense","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"20X1 development recognised as an expense","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"Expenditure from January to May 20X2","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Directly attributable costs from June to December 20X2","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"User training","es":""},"value":"15000","unit":"EUR"}],"steps":[{"id":"INTANGIBLE_COST","label":{"fr":"","en":"Cost at 31 December 20X2","es":""},"answer":210000,"tolerance":0,"unit":"EUR"}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000280","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.PAST_EXPENSES","IAS38.INTERNAL_GENERATION.COST"],"dimension":"ANALYSIS","context":"V1_QST.IAS38.000280","tested_point":"QST.IAS38.000280","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §71","IAS 38 §65","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"Anselm is developing a machine translation tool for which the recognition criteria are first met on 1 May 20X3. At 31 December 20X3, the accountant prepares the entries below. Which one is wrong?","es":""},"explanation":{"fr":"","en":"The January to April expenditure was recognised as an expense: it cannot later be recognised as part of the cost of the asset (IAS 38, para. 71), whose cost runs only from 1 May (IAS 38, para. 65). The reclassification entry is therefore wrong. The other treatments are correct, training being excluded from cost (IAS 38, para. 67).","es":""},"common_error":{"fr":"","en":"Thinking that reclassification is allowed as long as the year is not closed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Keeping in expense the expenditure from January to April 20X3.","es":""},"correct":false,"feedback":{"fr":"","en":"This entry is correct: keeping the January-April expenditure as an expense is the right treatment, since it precedes the date the criteria are first met, 1 May (IAS 38, para. 65). It is therefore not the entry to correct. Rule to remember: expenditure before the criteria date stays an expense (IAS 38, paras. 65 and 71).","es":""}},{"id":"B","text":{"fr":"","en":"Recognising as an asset the directly attributable costs incurred since 1 May.","es":""},"correct":false,"feedback":{"fr":"","en":"This entry is correct: capitalising the directly attributable costs incurred since 1 May corresponds to the cost of the asset (IAS 38, para. 65). It is therefore not the entry to correct, even though it concerns the same transaction. Rule to remember: the cost is made up of directly attributable costs after the criteria date (IAS 38, paras. 65 and 66).","es":""}},{"id":"C","text":{"fr":"","en":"Reclassifying to the asset the January to April expenditure already expensed.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Leaving in expense the training of the tool's future users.","es":""},"correct":false,"feedback":{"fr":"","en":"This entry is correct: leaving the training of future users as an expense is the right treatment, as staff training is excluded from the cost of an internally generated asset (IAS 38, para. 67). It is therefore not the entry to correct. Rule to remember: staff training stays an expense, even after the criteria date (IAS 38, para. 67).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000281","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.PAST_EXPENSES","IAS38.INTERNAL_GENERATION.COST"],"dimension":"ANALYSIS","context":"V1_QST.IAS38.000281","tested_point":"QST.IAS38.000281","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §71","IAS 38 §66","IAS 38 §67"],"exercise":{"prompt":{"fr":"","en":"The cost worksheet for a recycling process developed by Ferrance, prepared for the 20X4 year end, contains the lines below. Which one contains an error?","es":""},"explanation":{"fr":"","en":"The 20X3 development was recognised as an expense; it cannot later be recognised as part of cost (IAS 38, para. 71). The correct cost is therefore 300,000 + 10,000 = 310,000, not 400,000. Amortisation of a patent used is part of cost (IAS 38, para. 66) and overheads that are not directly attributable are excluded (IAS 38, para. 67).","es":""},"common_error":{"fr":"","en":"Retaining a cost of 400,000 by reinstating the 20X3 expense.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Direct costs since the criteria date: 300,000, included.","es":""},"correct":false,"feedback":{"fr":"","en":"This line is correct: the direct costs incurred since the criteria date form the cost of the asset (IAS 38, paras. 65 and 66). It is therefore not the line containing the error. Rule to remember: direct costs after the criteria date are in the cost (IAS 38, paras. 65 and 66).","es":""}},{"id":"B","text":{"fr":"","en":"Amortisation of a patent used for the process: 10,000, included.","es":""},"correct":false,"feedback":{"fr":"","en":"This line is correct: amortisation of a patent used to generate the asset is a directly attributable cost, included in the cost (IAS 38, para. 66). It is therefore not the line containing the error. Rule to remember: amortisation of a patent used to create the asset is in its cost (IAS 38, para. 66).","es":""}},{"id":"C","text":{"fr":"","en":"20X3 development recognised as an expense: 90,000, added.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Overheads with no direct link to the project: 25,000, excluded.","es":""},"correct":false,"feedback":{"fr":"","en":"This line is correct: overheads with no direct link to the project are excluded from the cost (IAS 38, para. 67). It is therefore not the line containing the error. Rule to remember: overheads that are not directly attributable are outside the cost (IAS 38, para. 67).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000282","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000282","tested_point":"QST.IAS38.000282","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §72"],"exercise":{"prompt":{"fr":"","en":"True or false? After initial recognition, an entity chooses either the cost model or the revaluation model as its accounting policy for measuring its intangible assets.","es":""},"explanation":{"fr":"","en":"True. Approach: identify the choice the standard leaves to the entity once the asset is recognised. IAS 38 offers a choice between the cost model and the revaluation model, adopted as an accounting policy (IAS 38, para. 72). Trap: believing that revaluation is compulsory, or that the model depends on the nature of the asset. Rule to remember: after initial recognition, the entity chooses between the cost model and the revaluation model, as an accounting policy (IAS 38, para. 72).","es":""},"common_error":{"fr":"","en":"Thinking that an intangible asset must be revalued, with no possibility of choosing the cost model.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000283","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000283","tested_point":"QST.IAS38.000283","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §72"],"exercise":{"prompt":{"fr":"","en":"True or false? A taxi company may revalue only its most valuable licence and keep at cost its other licences of the same class, all of which are traded on an active market.","es":""},"explanation":{"fr":"","en":"False. Approach: check whether the chosen model applies to a single asset or to a class. When an intangible asset is accounted for under the revaluation model, all the other assets in its class are also revalued, unless there is no active market (IAS 38, para. 72). Here, all the licences have an active market: the company cannot limit itself to the most valuable one. Trap: choosing the assets to revalue one by one. Rule to remember: revaluing one asset means revaluing its class, except assets with no active market (IAS 38, para. 72).","es":""},"common_error":{"fr":"","en":"Revaluing the most valuable asset in a class while leaving the others at cost.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000284","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE","IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000284","tested_point":"QST.IAS38.000284","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §72","IAS 38 §81"],"exercise":{"prompt":{"fr":"","en":"True or false? In a class of intangible assets measured using the revaluation model, an asset for which there is no active market is carried at its cost less accumulated amortisation and impairment losses.","es":""},"explanation":{"fr":"","en":"True. Approach: distinguish the assets of the class that have an active market from those that do not. Revaluation of the whole class applies unless there is no active market (IAS 38, para. 72); an asset that cannot be revalued for lack of an active market is carried at cost less accumulated amortisation and impairment losses (IAS 38, para. 81). Trap: thinking that this asset must be revalued all the same, or that it falls outside measurement. Rule to remember: in a revalued class, an asset with no active market stays at cost less amortisation and impairment (IAS 38, para. 81).","es":""},"common_error":{"fr":"","en":"Revaluing at an estimated value an asset of the class for which there is no active market.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000285","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE","IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000285","tested_point":"QST.IAS38.000285","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §72","IAS 38 §75"],"exercise":{"prompt":{"fr":"","en":"True or false? An entity may apply the cost model to its class of patents and the revaluation model to its class of transport licences, which are traded on an active market.","es":""},"explanation":{"fr":"","en":"True. Approach: determine the scope to which the uniformity requirement applies. The model is chosen as an accounting policy and the requirement to apply the same model concerns assets of the same class (IAS 38, para. 72); different classes can follow different models, provided the fair value of the revalued class is determined by reference to an active market (IAS 38, para. 75). Trap: believing the model must be the same for all of the entity's intangible assets. Rule to remember: the same model applies within a class, not across classes (IAS 38, para. 72).","es":""},"common_error":{"fr":"","en":"Believing that all of an entity's intangibles must follow the same model, instead of consistency within each class.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000286","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000286","tested_point":"QST.IAS38.000286","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §72"],"exercise":{"prompt":{"fr":"","en":"Between which measurement models does an entity choose for its intangible assets after initial recognition?","es":""},"explanation":{"fr":"","en":"The entity chooses either the cost model or the revaluation model as its accounting policy (IAS 38, para. 72). No other model is provided and revaluation is never imposed: it is a choice.","es":""},"common_error":{"fr":"","en":"Confusing the revaluation model with fair value measurement through profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The cost model and the fair value through profit or loss model.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer contrasts the cost model with a fair-value-through-profit-or-loss model. Yet the choice provided is between the cost model and the revaluation model (IAS 38, para. 72); and under revaluation, an increase goes to other comprehensive income, except to the extent it reverses an earlier decrease taken to profit or loss (IAS 38, para. 85). It is therefore not fair value through profit or loss. Rule to remember: after initial recognition: cost or revaluation (IAS 38, para. 72).","es":""}},{"id":"B","text":{"fr":"","en":"The cost model and the revaluation model.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The historical cost model and the value in use model.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer cites value in use as the second model. Value in use is not one of the two measurement models provided for after initial recognition: the entity chooses the cost model (cost less amortisation and impairment losses (IAS 38, para. 74)) or the revaluation model (IAS 38, para. 72). Rule to remember: the standard's two models are cost and revaluation (IAS 38, para. 72).","es":""}},{"id":"D","text":{"fr":"","en":"No choice: revaluation is required whenever an active market exists.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer states that revaluation is imposed as soon as an active market exists. The standard provides a choice of accounting policy between two models (IAS 38, para. 72); an active market conditions the ability to revalue (IAS 38, para. 75), without making revaluation compulsory. Rule to remember: an active market makes revaluation possible, not compulsory (IAS 38, paras. 72 and 75).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000287","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE","IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000287","tested_point":"QST.IAS38.000287","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §72","IAS 38 §75"],"exercise":{"prompt":{"fr":"","en":"An entity adopts the revaluation model for a class of intangible assets. By reference to what is the fair value of these assets determined?","es":""},"explanation":{"fr":"","en":"Choosing the revaluation model is an accounting policy applied to the class (IAS 38, para. 72). Under this model, fair value is determined by reference to an active market (IAS 38, para. 75).","es":""},"common_error":{"fr":"","en":"Believing that an internal valuation is enough to revalue an intangible asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An active market.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Cash flows forecast by management, without any external reference.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer uses the cash flows forecast by management, with no external reference. The fair value of a revalued asset is determined by reference to an active market (IAS 38, para. 75): an internal estimate does not allow revaluation. Rule to remember: revaluing requires an active market, not an internal estimate (IAS 38, para. 75).","es":""}},{"id":"C","text":{"fr":"","en":"The original cost indexed to inflation.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer uses the original cost indexed for inflation. An indexed cost is still a cost: it is not a fair value determined by reference to an active market (IAS 38, para. 75), and the cost model is not the revaluation model (IAS 38, paras. 72 and 74). Rule to remember: indexed cost and fair value are different notions; revaluation uses the latter (IAS 38, para. 75).","es":""}},{"id":"D","text":{"fr":"","en":"A single purchase offer received for one of the assets.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer uses a single purchase offer received for one of the assets. A single offer is not an active market: transactions in intangibles are often infrequent and the price paid for one asset does not prove the fair value of another (IAS 38, para. 78). Fair value must be determined by reference to an active market (IAS 38, para. 75). Rule to remember: a single offer is not enough to revalue (IAS 38, paras. 75 and 78).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000288","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE","IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000288","tested_point":"QST.IAS38.000288","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §72","IAS 38 §81"],"exercise":{"prompt":{"fr":"","en":"Pescalia, a fishing company, holds a class of fishing quotas, all traded on an active market except one quota for a rare species, which is never traded. Pescalia adopts the revaluation model for this class. How is the rare-species quota measured?","es":""},"explanation":{"fr":"","en":"Under revaluation, all assets in the class are revalued unless there is no active market (IAS 38, para. 72). The quota that cannot be revalued for lack of an active market is carried at cost less accumulated amortisation and impairment losses (IAS 38, para. 81).","es":""},"common_error":{"fr":"","en":"Estimating a fair value when there is no active market.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At a fair value estimated by extrapolating the prices of the other quotas.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer estimates the rare-species quota by extrapolating the prices of the other quotas. Yet the price paid for one asset does not prove the fair value of another (IAS 38, para. 78), and without an active market the asset is not revalued (IAS 38, para. 81). An extrapolation does not replace that market. Rule to remember: with no active market, there is no revaluation and no extrapolation (IAS 38, paras. 78 and 81).","es":""}},{"id":"B","text":{"fr":"","en":"At zero, since it cannot be sold.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer reduces the quota to zero, since it cannot be sold. The absence of an active market does not lead to a nil value: the asset that cannot be revalued for lack of an active market stays at cost less accumulated amortisation and impairment losses (IAS 38, para. 81). Rule to remember: with no active market, the asset stays measured under the cost model (IAS 38, para. 81).","es":""}},{"id":"C","text":{"fr":"","en":"Choosing revaluation is impossible for the whole class.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer concludes that revaluation is impossible for the whole class because of a single quota. The standard's exception relates to the asset with no active market: all the other assets in the class are revalued (IAS 38, para. 72). The quotas traded on Pescalia's active market therefore are. Rule to remember: one asset without an active market does not block the revaluation of the rest of the class (IAS 38, para. 72).","es":""}},{"id":"D","text":{"fr":"","en":"At cost less accumulated amortisation and impairment losses.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000289","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE","IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000289","tested_point":"QST.IAS38.000289","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §72","IAS 38 §75"],"exercise":{"prompt":{"fr":"","en":"Cerdane group holds two classes of intangible assets: industrial patents, for which there is no active market, and taxi licences, traded on an active market. The CFO wishes to move to the revaluation model for all its intangible assets. Which analysis is correct?","es":""},"explanation":{"fr":"","en":"The model is chosen as an accounting policy and applied to a whole class, unless there is no active market (IAS 38, para. 72). The fair value of a revalued asset is determined by reference to an active market (IAS 38, para. 75): the taxi licences may therefore be revalued, but not the patents.","es":""},"common_error":{"fr":"","en":"Revaluing assets with no active market on the basis of internal estimates.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"All the group's intangible assets may be revalued, on the basis of internal appraisals.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer revalues all of the group's intangible assets on the basis of internal valuations. Yet the fair value of a revalued asset is determined by reference to an active market (IAS 38, para. 75), and for patents an active market cannot exist, each patent being unique (IAS 38, para. 78). An internal valuation does not replace that reference. Rule to remember: without an active market, an internal valuation does not allow revaluation (IAS 38, paras. 75 and 78).","es":""}},{"id":"B","text":{"fr":"","en":"The taxi licence class may be revalued; the patents remain measured at cost.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only licences whose market value exceeds cost may be revalued.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer limits revaluation to the licences whose market value exceeds cost. That amounts to picking individual assets according to the direction of the gap, whereas the model applies to the whole class that has an active market (IAS 38, para. 72). Rule to remember: revaluation is not done asset by asset: it covers the class (IAS 38, para. 72).","es":""}},{"id":"D","text":{"fr":"","en":"No revaluation is possible as long as one class has no active market.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer refuses any revaluation until a class has an active market. The model is chosen by class (IAS 38, para. 72): the lack of an active market for patents does not prevent revaluing the taxi licences, which have one (IAS 38, para. 75). Rule to remember: no active market in one class does not prevent revaluation of another (IAS 38, para. 72).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000290","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000290","tested_point":"QST.IAS38.000290","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §72"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements on the choice of measurement model for intangible assets are correct? More than one answer may be correct.","es":""},"explanation":{"fr":"","en":"The entity chooses the cost model or the revaluation model as its accounting policy; if it revalues an asset, all assets in its class are revalued unless there is no active market (IAS 38, para. 72). The cost model is always available: revaluation is only an option.","es":""},"common_error":{"fr":"","en":"Thinking that revaluation becomes mandatory as soon as an active market exists.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The choice between the cost model and the revaluation model is an accounting policy.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The model is chosen freely for each asset, independently of the others.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement gives the entity a free choice asset by asset. The standard provides a choice of accounting policy (IAS 38, para. 72): if an asset is revalued, all the assets in its class are too, unless there is no active market. Rule to remember: the model is chosen for a class, not asset by asset (IAS 38, para. 72).","es":""}},{"id":"C","text":{"fr":"","en":"Under revaluation, the other assets in the class are also revalued, unless there is no active market.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Revaluation is mandatory for any asset traded on an active market.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement makes revaluation compulsory for any asset traded on an active market. An active market makes revaluation possible (IAS 38, para. 75), but the cost model or the revaluation model remains a choice of accounting policy (IAS 38, para. 72). Rule to remember: an active market allows revaluation, it does not impose it (IAS 38, paras. 72 and 75).","es":""}},{"id":"E","text":{"fr":"","en":"An entity may measure all its intangible assets using the cost model.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000291","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE","IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000291","tested_point":"QST.IAS38.000291","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §72","IAS 38 §75","IAS 38 §81"],"exercise":{"prompt":{"fr":"","en":"Lactavia, a cooperative, holds a class of milk production quotas, almost all traded on an active market, and a separate class of software. It is considering adopting the revaluation model for its quotas. Which statements are correct? More than one answer may be correct.","es":""},"explanation":{"fr":"","en":"The chosen model applies to the whole class, except for assets with no active market (IAS 38, para. 72), which stay at cost less accumulated amortisation and impairment losses (IAS 38, para. 81). Another class, such as software, may follow a different model. Fair value is determined by reference to an active market (IAS 38, para. 75).","es":""},"common_error":{"fr":"","en":"Selecting the assets to revalue according to the direction of their price changes.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"If it revalues one quota, it must revalue all quotas in the class that have an active market.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It may revalue its quotas while keeping its software under the cost model.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It may revalue only the quotas whose market price has risen.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement limits revaluation to the quotas whose market price has risen. Selecting assets by the direction of their change amounts to revaluing individual assets, which the model does not allow: the assets of the class with an active market are all revalued (IAS 38, para. 72). Rule to remember: assets to be revalued are not chosen according to whether their price rises or falls (IAS 38, para. 72).","es":""}},{"id":"D","text":{"fr":"","en":"A quota in the class with no active market stays at cost less amortisation and impairment losses.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The fair value of the revalued quotas may be set by management without reference to the market.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement lets management set the fair value of the quotas with no reference to the market. The fair value of a revalued asset is determined by reference to an active market (IAS 38, para. 75): a value set by management without that reference does not allow revaluation. Rule to remember: the fair value of a revalued asset is read from an active market (IAS 38, para. 75).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000292","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.POLICY_CHOICE","IAS38.RECOGNITION.INITIAL_MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000292","tested_point":"QST.IAS38.000292","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"initial-measurement"},"references":["IAS 38 §72","IAS 38 §24"],"exercise":{"prompt":{"fr":"","en":"Ondéa, a broadcaster, measures its class of broadcasting licences using the revaluation model. It acquires a new licence in the same class, traded on an active market. How is this licence measured after initial recognition?","es":""},"explanation":{"fr":"","en":"The licence is first measured at cost on initial recognition (IAS 38, para. 24). Afterwards, since its class follows the revaluation model and an active market exists, it is revalued as well (IAS 38, para. 72).","es":""},"common_error":{"fr":"","en":"Treating each acquisition as an opportunity for a new choice of model.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At cost until the end of its first year, then as Ondéa chooses.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer keeps the licence at cost until the end of its first year, then lets Ondéa choose. No waiting period or new choice is provided for: after initial recognition at cost (IAS 38, para. 24), the licence follows the model of its class, revaluation, because an active market exists (IAS 38, para. 72). Rule to remember: the acquired licence follows its class's model right after initial recognition (IAS 38, paras. 24 and 72).","es":""}},{"id":"B","text":{"fr":"","en":"Using the revaluation model, like the other licences in the class.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Using the model of its choice, each acquisition giving rise to a new choice.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer lets Ondéa choose the model at each acquisition. The choice of model is an accounting policy covering the whole class (IAS 38, para. 72): a new licence in the revalued class is also revalued, unless there is no active market. Rule to remember: the model is chosen for the class, not at each acquisition (IAS 38, para. 72).","es":""}},{"id":"D","text":{"fr":"","en":"At cost, unless its fair value rises above its acquisition cost.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer keeps the licence at cost unless its fair value exceeds its acquisition cost. The class's model applies whatever the direction of the gap between fair value and cost (IAS 38, paras. 72 and 75): a licence can be revalued downwards as well as upwards. Rule to remember: revaluation follows the class, whatever the direction of the gap (IAS 38, para. 72).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000293","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000293","tested_point":"QST.IAS38.000293","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"True or false? Under the cost model, an intangible asset is carried at its cost less any accumulated amortisation and any accumulated impairment losses.","es":""},"explanation":{"fr":"","en":"True. Approach: identify the components of the carrying amount after initial recognition. Under the cost model, it equals cost less accumulated amortisation and accumulated impairment losses (IAS 38, para. 74). Trap: forgetting one of the two deductions, usually the impairment losses. Rule to remember: cost model: cost − accumulated amortisation − accumulated impairment losses (IAS 38, para. 74).","es":""},"common_error":{"fr":"","en":"Forgetting to deduct accumulated impairment losses, stopping at cost less amortisation.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000294","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000294","tested_point":"QST.IAS38.000294","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"True or false? Under the cost model, when the market price of a licence increases, its carrying amount is raised to that new price.","es":""},"explanation":{"fr":"","en":"False. Approach: ask which model is applied before looking at the market price. Under the cost model, the carrying amount is cost less accumulated amortisation and impairment losses (IAS 38, para. 74): an increase in market price is not recognised. It is the revaluation model that takes fair value into account (IAS 38, para. 75). Trap: mixing the two models. Rule to remember: under the cost model, a rise in market value does not change the carrying amount (IAS 38, para. 74).","es":""},"common_error":{"fr":"","en":"Bringing the carrying amount of a licence up to its market price while the entity applies the cost model.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000295","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL","IAS38.IMPAIRMENT.IAS36_LINK"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000295","tested_point":"QST.IAS38.000295","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §74","IAS 38 §111"],"exercise":{"prompt":{"fr":"","en":"True or false? For an intangible asset measured under the cost model, an impairment loss determined by applying IAS 36 reduces its carrying amount.","es":""},"explanation":{"fr":"","en":"True. Approach: link the impairment loss to the cost model, then to the standard that determines it. The cost model deducts accumulated amortisation and accumulated impairment losses from cost (IAS 38, para. 74); it is IAS 36 that determines whether the asset is impaired (IAS 38, para. 111). A recognised impairment loss therefore reduces the carrying amount. Trap: deducting amortisation without the impairment loss. Rule to remember: under the cost model, impairment losses determined under IAS 36 reduce the carrying amount (IAS 38, paras. 74 and 111).","es":""},"common_error":{"fr":"","en":"Deducting amortisation from cost while ignoring the impairment loss determined under IAS 36.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000296","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL","IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000296","tested_point":"QST.IAS38.000296","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §74","IAS 38 §107"],"exercise":{"prompt":{"fr":"","en":"True or false? Under the cost model, the carrying amount of an intangible asset whose useful life has been indefinite since initial recognition equals its cost less accumulated impairment losses only.","es":""},"explanation":{"fr":"","en":"True. Approach: apply the cost model formula by asking which deductions exist. The cost model deducts accumulated amortisation and impairment losses from cost (IAS 38, para. 74); an intangible asset with an indefinite useful life is not amortised (IAS 38, para. 107), so impairment losses are what reduce its cost. This equality assumes an indefinite life since initial recognition: an asset that was first amortised would keep earlier accumulated amortisation as a deduction. Trap: amortising by default. Rule to remember: indefinite life since the start: carrying amount = cost − accumulated impairment losses (IAS 38, paras. 74 and 107).","es":""},"common_error":{"fr":"","en":"Amortising by default an intangible asset with an indefinite useful life to compute its carrying amount.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000297","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL","IAS38.MEASUREMENT_MODEL.POLICY_CHOICE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000297","tested_point":"QST.IAS38.000297","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §74","IAS 38 §72"],"exercise":{"prompt":{"fr":"","en":"True or false? The cost model is reserved for internally generated intangible assets; acquired intangible assets must be revalued.","es":""},"explanation":{"fr":"","en":"False. Approach: check whether the origin of the asset (acquired or internally generated) conditions the choice of model. The choice between the cost model and the revaluation model is an accounting policy open to intangible assets, with no distinction by origin (IAS 38, para. 72); under the cost model, the asset is carried at cost less accumulated amortisation and impairment losses (IAS 38, para. 74). Trap: believing revaluation is compulsory for acquired assets. Rule to remember: the origin of the asset does not determine the model: cost remains a possible choice for all (IAS 38, paras. 72 and 74).","es":""},"common_error":{"fr":"","en":"Believing that acquired intangible assets must necessarily be revalued.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000298","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000298","tested_point":"QST.IAS38.000298","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"Under the cost model, at what amount is an intangible asset presented after initial recognition?","es":""},"explanation":{"fr":"","en":"Under the cost model, the intangible asset is carried at cost less accumulated amortisation and accumulated impairment losses (IAS 38, para. 74). Approach: start from cost, then deduct the two accumulated amounts. Trap: stopping at amortisation, using fair value (revaluation model) or keeping the original cost. Rule to remember: cost model: cost − accumulated amortisation − accumulated impairment losses (IAS 38, para. 74).","es":""},"common_error":{"fr":"","en":"Forgetting impairment losses in the cost model formula.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At its fair value at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer uses fair value at the reporting date, which belongs to the revaluation model (IAS 38, para. 75). The cost model starts from original cost and reduces it by accumulated amortisation and impairment losses (IAS 38, para. 74); it ignores changes in fair value. Rule to remember: fair value belongs to revaluation, not to the cost model (IAS 38, paras. 74 and 75).","es":""}},{"id":"B","text":{"fr":"","en":"At its cost less accumulated amortisation only.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer deducts accumulated amortisation without the impairment losses: the accumulated impairment losses, which are also deducted under the cost model, are missing (IAS 38, para. 74). The carrying amount thus obtained would be overstated as soon as an impairment loss has been recognised. Rule to remember: amortisation and impairment losses are two separate deductions from cost (IAS 38, para. 74).","es":""}},{"id":"C","text":{"fr":"","en":"At cost, less accumulated amortisation and impairment losses.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"At its original cost, with no deduction.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer keeps the original cost with no deduction. Original cost is the starting point; the carrying amount after initial recognition is that cost less accumulated amortisation and impairment losses (IAS 38, para. 74). Rule to remember: original cost is not the carrying amount under the cost model (IAS 38, para. 74).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000299","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000299","tested_point":"QST.IAS38.000299","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"Tessaly measures its software using the cost model. For an acquired software, the data at the reporting date are: cost 120,000; accumulated amortisation 36,000; accumulated impairment losses 10,000. What is its carrying amount?","es":""},"explanation":{"fr":"","en":"Under the cost model, the carrying amount is cost less accumulated amortisation and impairment losses (IAS 38, para. 74): 120,000 − 36,000 − 10,000 = 74,000. Approach: write the three amounts, then subtract the two accumulated figures from cost. Trap: deducting one of the two without the other (84,000 or 110,000), or stopping at cost (120,000). Rule to remember: carrying amount = cost − accumulated amortisation − accumulated impairment losses (IAS 38, para. 74).","es":""},"common_error":{"fr":"","en":"Deducting only one of the two accumulated amounts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"84,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 84,000 is 120,000 − 36,000: it deducts accumulated amortisation but forgets the 10,000 of impairment losses. The cost model deducts both accumulated amounts from cost (IAS 38, para. 74). Rule to remember: both accumulated amortisation and accumulated impairment losses must be deducted (IAS 38, para. 74).","es":""}},{"id":"B","text":{"fr":"","en":"74,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"110,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 110,000 is 120,000 − 10,000: it deducts the impairment losses but forgets the 36,000 of accumulated amortisation. The cost model deducts both accumulated amounts (IAS 38, para. 74). Rule to remember: an impairment loss does not replace amortisation: both are deducted (IAS 38, para. 74).","es":""}},{"id":"D","text":{"fr":"","en":"120,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 120,000 is the original cost, before any deduction. It is not the carrying amount under the cost model, which is cost less accumulated amortisation and accumulated impairment losses (IAS 38, para. 74). Rule to remember: under the cost model, the carrying amount is below cost as soon as an accumulated amount exists (IAS 38, para. 74).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000300","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000300","tested_point":"QST.IAS38.000300","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"Harlan, which applies the cost model to its licences, holds a broadcasting licence acquired for 250,000, whose accumulated amortisation reaches 100,000 at the reporting date; no impairment loss has been recognised. An expert estimates the fair value of the licence at 190,000. What is its carrying amount?","es":""},"explanation":{"fr":"","en":"Under the cost model, the carrying amount is cost less accumulated amortisation and impairment losses (IAS 38, para. 74): 250,000 − 100,000 = 150,000. The fair value of 190,000 is not an input of the cost model.","es":""},"common_error":{"fr":"","en":"Being guided by the fair value provided by the expert.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"190,000","es":""},"correct":false,"feedback":{"fr":"","en":"This answer uses the 190,000 fair value given by the expert. Yet Harlan applies the cost model: the carrying amount is cost less accumulated amortisation and impairment losses (IAS 38, para. 74), and fair value is not an input of that model. Using 190,000 would amount to applying revaluation (IAS 38, para. 75). Rule to remember: under the cost model, fair value has no effect on the carrying amount (IAS 38, para. 74).","es":""}},{"id":"B","text":{"fr":"","en":"250,000","es":""},"correct":false,"feedback":{"fr":"","en":"This answer uses the original cost of 250,000, without deducting the accumulated amortisation of 100,000. Under the cost model, the carrying amount is cost less accumulated amortisation and impairment losses (IAS 38, para. 74). Rule to remember: accumulated amortisation is deducted from cost (IAS 38, para. 74).","es":""}},{"id":"C","text":{"fr":"","en":"150,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"90,000","es":""},"correct":false,"feedback":{"fr":"","en":"This answer deducts accumulated amortisation from fair value (190,000 − 100,000). That mixes two models: the cost model deducts amortisation from cost, 250,000 − 100,000 (IAS 38, para. 74), whereas fair value belongs to revaluation (IAS 38, para. 75). Rule to remember: do not mix fair value and the cost model (IAS 38, paras. 74 and 75).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000301","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL","IAS38.IMPAIRMENT.IAS36_LINK"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000301","tested_point":"QST.IAS38.000301","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §74","IAS 38 §111"],"exercise":{"prompt":{"fr":"","en":"Quimper Data measures under the cost model a database acquired for 80,000, with amortisation of 32,000 at the reporting date. At that date, applying IAS 36, it recognises an impairment loss of 12,000, whose amount is provided by the expert. What is the carrying amount of the database after this loss?","es":""},"explanation":{"fr":"","en":"The impairment loss is determined under IAS 36 (IAS 38, para. 111). Under the cost model, it is deducted from cost together with accumulated amortisation (IAS 38, para. 74): 80,000 − 32,000 − 12,000 = 36,000.","es":""},"common_error":{"fr":"","en":"Forgetting one of the two deductions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"48,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 48,000 is 80,000 − 32,000: it omits the 12,000 impairment loss. After the loss, the carrying amount under the cost model also deducts accumulated impairment losses from cost (IAS 38, para. 74), the loss being determined under IAS 36 (IAS 38, para. 111). Rule to remember: the recognised impairment loss is deducted from cost in addition to accumulated amortisation (IAS 38, para. 74).","es":""}},{"id":"B","text":{"fr":"","en":"36,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"68,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 68,000 is 80,000 − 12,000: it omits the 32,000 of accumulated amortisation. The cost model deducts both accumulated amounts (IAS 38, para. 74), the impairment loss determined under IAS 36 (IAS 38, para. 111) not replacing amortisation. Rule to remember: impairment loss and accumulated amortisation are deducted together (IAS 38, para. 74).","es":""}},{"id":"D","text":{"fr":"","en":"24,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 24,000 deducts the impairment loss twice (80,000 − 32,000 − 12,000 − 12,000). The 12,000 loss is deducted once from cost, like accumulated amortisation (IAS 38, para. 74). Rule to remember: each accumulated amount is deducted once, with no double count (IAS 38, para. 74).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000302","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL","IAS38.AMORTISATION.METHOD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000302","tested_point":"QST.IAS38.000302","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §74","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"Bravane acquires an operating licence for 60,000, available for use on 1 January 20X1, and measures it under the cost model. Its useful life is 5 years, its residual value is nil and the straight-line method reflects the expected pattern of consumption. No impairment loss is recognised. What is its carrying amount at 31 December 20X3?","es":""},"explanation":{"fr":"","en":"Straight-line amortisation begins when the asset is available for use (IAS 38, para. 97): 60,000 / 5 = 12,000 per year, that is 3 × 12,000 = 36,000 accumulated at 31 December 20X3. Under the cost model, the carrying amount is 60,000 − 36,000 = 24,000 (IAS 38, para. 74).","es":""},"common_error":{"fr":"","en":"Confusing the carrying amount with accumulated amortisation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"36,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 36,000 is the accumulated amortisation (3 × 12,000), not the carrying amount. Under the cost model, the carrying amount is cost less that accumulated amount and impairment losses (IAS 38, para. 74): 60,000 − 36,000 = 24,000. Rule to remember: accumulated amortisation is deducted from cost, it is not the carrying amount (IAS 38, para. 74).","es":""}},{"id":"B","text":{"fr":"","en":"60,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 60,000 is the original cost: the answer forgets to reduce it by the accumulated amortisation of the three years. Straight-line amortisation starts when the asset is available for use (IAS 38, para. 97) and is deducted from cost under the cost model (IAS 38, para. 74). Rule to remember: after three years of amortisation, the carrying amount is below cost (IAS 38, paras. 74 and 97).","es":""}},{"id":"C","text":{"fr":"","en":"24,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"12,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 12,000 is the annual charge (60,000 / 5), not the carrying amount at 31 December 20X3. Three charges must be accumulated, i.e. 36,000, then deducted from cost (IAS 38, paras. 74 and 97). Rule to remember: carrying amount = cost − accumulated charges, not a single charge (IAS 38, para. 74).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000303","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000303","tested_point":"QST.IAS38.000303","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"The closing trial balance of Mirandel, which applies the cost model, shows for its acquired patents: gross amount 500,000; accumulated amortisation 180,000, including the charge for the year of 50,000; accumulated impairment losses 40,000. What carrying amount of the patents appears in the statement of financial position?","es":""},"explanation":{"fr":"","en":"Under the cost model, the carrying amount is cost less accumulated amortisation and accumulated impairment losses (IAS 38, para. 74): 500,000 − 180,000 − 40,000 = 280,000. The charge for the year is already included in the accumulated amount; it is not deducted a second time.","es":""},"common_error":{"fr":"","en":"Deducting the charge for the year on top of the accumulated amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"230,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 230,000 deducts the year's charge twice: 500,000 − 180,000 − 40,000 − 50,000. But the accumulated 180,000 already includes the 50,000 charge; deducting it again would count the same charge twice (IAS 38, para. 74). Rule to remember: the year's charge is already included in accumulated amortisation (IAS 38, para. 74).","es":""}},{"id":"B","text":{"fr":"","en":"280,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"320,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 320,000 is 500,000 − 180,000: it omits the accumulated impairment losses of 40,000. The cost model deducts both accumulated amounts (IAS 38, para. 74). The statement of financial position would thus show patents overstated by 40,000. Rule to remember: accumulated amortisation and accumulated impairment losses are deducted together (IAS 38, para. 74).","es":""}},{"id":"D","text":{"fr":"","en":"500,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 500,000 is the gross amount, before deductions. Under the cost model, the amount shown is the gross amount less accumulated amortisation and accumulated impairment losses (IAS 38, para. 74). Rule to remember: the gross amount is not the carrying amount (IAS 38, para. 74).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000304","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.COST_MODEL","IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000304","tested_point":"QST.IAS38.000304","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §74","IAS 38 §107"],"exercise":{"prompt":{"fr":"","en":"Three years ago, Volterre acquired for 400,000 a licence whose useful life is assessed as indefinite; it applies the cost model. Accumulated impairment losses recognised since acquisition amount to 30,000. An intern proposes to amortise the licence over 10 years. What is the carrying amount of the licence at the reporting date?","es":""},"explanation":{"fr":"","en":"An intangible asset with an indefinite useful life is not amortised (IAS 38, para. 107). Under the cost model, its carrying amount is therefore its cost less accumulated impairment losses only (IAS 38, para. 74): 400,000 − 30,000 = 370,000.","es":""},"common_error":{"fr":"","en":"Amortising by default a licence with an indefinite useful life.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"280,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 280,000 applies the amortisation proposed by the trainee (400,000 − 3 × 40,000) and omits the impairment losses. A licence with an indefinite useful life is not amortised (IAS 38, para. 107); impairment losses are what reduce its cost under the cost model (IAS 38, para. 74). Rule to remember: indefinite useful life: no charge, impairment losses are what is deducted (IAS 38, paras. 74 and 107).","es":""}},{"id":"B","text":{"fr":"","en":"400,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 400,000 is the cost, without deducting the 30,000 of impairment losses. The cost model deducts accumulated impairment losses (IAS 38, para. 74), even when the asset is not amortised (IAS 38, para. 107). Rule to remember: an asset that is not amortised can still be impaired: the impairment losses are deducted (IAS 38, para. 74).","es":""}},{"id":"C","text":{"fr":"","en":"250,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount of 250,000 wrongly amortises the licence over 10 years (400,000 − 120,000) and also deducts the 30,000 of impairment losses. Yet an intangible asset with an indefinite useful life is not amortised (IAS 38, para. 107). Rule to remember: do not amortise an asset with an indefinite useful life (IAS 38, para. 107).","es":""}},{"id":"D","text":{"fr":"","en":"370,000","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000305","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000305","tested_point":"QST.IAS38.000305","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"revaluation-rule"},"references":["IAS 38 §75"],"exercise":{"prompt":{"fr":"","en":"Pêcheries Armorine, which applies the cost model to its intangible assets, is considering adopting the revaluation model for its portfolio of transferable fishing licences. What condition must be met for a licence in this portfolio to be revalued?","es":""},"explanation":{"fr":"","en":"Under the revaluation model, an intangible asset is carried at a revalued amount, being its fair value at the date of revaluation less subsequent amortisation and impairment losses, and that fair value is measured by reference to an active market (IAS 38, para. 75). A discounted value calculated by an expert does not replace that market. As the revalued amount is reduced by subsequent amortisation, the model also covers amortised assets; and it leads to recognising decreases as well as increases in fair value.","es":""},"common_error":{"fr":"","en":"Revaluing a licence using a discounted value prepared by an expert where there is no active market.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An independent expert estimates its fair value by discounting the cash flows the licence is expected to generate.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer accepts that an independent expert estimates fair value by discounting the licence's cash flows. A discounted value, even an independent one, does not replace an active market: the revalued amount is a fair value determined by reference to an active market (IAS 38, para. 75), and prices for these intangibles are often not public (IAS 38, para. 78). A transferable fishing licence may have one; the valuation alone is not enough. Rule to remember: revaluing requires an active market, not a cash-flow estimate (IAS 38, para. 75).","es":""}},{"id":"B","text":{"fr":"","en":"Its fair value can be measured by reference to an active market.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Its useful life is indefinite, so the licence is not amortised.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer ties revaluation to an indefinite useful life. The revalued amount is fair value less subsequent amortisation and impairment losses (IAS 38, para. 75): the model therefore also covers amortised assets, and useful life is not the condition set. Rule to remember: revaluation depends on an active market, not on useful life (IAS 38, para. 75).","es":""}},{"id":"D","text":{"fr":"","en":"Its fair value durably exceeds its acquisition cost.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer requires fair value to exceed cost on a lasting basis. The revaluation model sets no such condition: it leads to recognising increases as well as decreases in revalued amounts (IAS 38, paras. 85 and 86), and the condition is the reference to an active market (IAS 38, para. 75). For Armorine, an unfavourable gap does not close the door to the model. Rule to remember: revaluation works in both directions; its condition is an active market (IAS 38, paras. 75, 85 and 86).","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000306","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION","IAS38.MEASUREMENT_MODEL.POLICY_CHOICE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000306","tested_point":"QST.IAS38.000306","difficulty":"EXPERT","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §72","IAS 38 §75","IAS 38 §81","IAS 38 §124"],"exercise":{"prompt":{"fr":"","en":"Agri-Quotas Ouest has opted for the revaluation model for its class of production quotas, most of which are traded on an active market. Which of the following statements are correct?","es":""},"explanation":{"fr":"","en":"When the entity chooses the revaluation model, all the assets in the class are revalued, unless there is no active market for them (IAS 38, para. 72). The revalued amount is fair value measured by reference to an active market, less subsequent amortisation and impairment losses (IAS 38, para. 75): amortisation continues. An asset in the class that cannot be revalued because there is no active market remains at cost less amortisation and impairment losses (IAS 38, para. 81). Finally, the notes disclose in particular the carrying amount under the cost model and the revaluation surplus at the beginning and end of the period (IAS 38, para. 124).","es":""},"common_error":{"fr":"","en":"Using a cash-flow valuation to revalue an asset of the class that has no active market.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A quota without an active market is revalued using a cash-flow valuation, so that the whole class is carried at fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement revalues the quota with no active market using a cash-flow valuation, so that the whole class is at fair value. Yet an asset in a revalued class that cannot be revalued for lack of an active market is carried at cost less accumulated amortisation and impairment losses (IAS 38, para. 81). In the statement of financial position, the class therefore mixes revalued assets and an asset at cost. Rule to remember: uniformity of the class does not mean revaluing without an active market (IAS 38, paras. 72 and 81).","es":""}},{"id":"B","text":{"fr":"","en":"All the quotas in the class that have an active market are revalued, not a selection of them.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A revalued quota is no longer amortised after the revaluation date.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement stops amortising a quota after its revaluation. The revalued amount is fair value less subsequent amortisation and impairment losses (IAS 38, para. 75): amortisation continues on the revalued amount. In profit or loss, the charge therefore keeps weighing on each period. Rule to remember: after revaluation, amortisation continues on the revalued amount (IAS 38, para. 75).","es":""}},{"id":"D","text":{"fr":"","en":"A quota in the class without an active market is carried at cost less accumulated amortisation and impairment losses.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The revaluation surplus relating to the quotas is disclosed only at the end of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement limits disclosure of the revaluation surplus to the year-end. The standard asks for the amount of the surplus at the beginning and end of the period, its movements for the period and any restrictions on distribution (IAS 38, para. 124). The notes must therefore allow the surplus to be followed from one year to the next. Rule to remember: the revaluation surplus is disclosed at the beginning and end of the period, with its movements (IAS 38, para. 124).","es":""}},{"id":"F","text":{"fr":"","en":"The notes disclose, for the class, the carrying amount the revalued quotas would have under the cost model.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000307","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION","IAS38.MEASUREMENT_MODEL.REVALUATION_INCREASE","IAS38.MEASUREMENT_MODEL.POLICY_CHOICE"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000601","tested_point":"VG.IAS38.000601","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"policy-choice-rule"},"references":["IAS 38 §75","IAS 38 §80","IAS 38 §85","IAS 38 §72"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X2, Armement Kerdual revalues for the first time a transferable fishing licence acquired for {cost}, whose accumulated amortisation amounts to {accumulated_amortisation}. Its fair value, measured by reference to an active market, is {fair_value}. The entity eliminates the accumulated amortisation against the gross carrying amount of the asset. No decrease in value has previously been recognised. The whole class of fishing licences to which this asset belongs, traded on that active market, is revalued at the same date. Ignore deferred tax effects. Calculate the revaluation surplus recognised in other comprehensive income and the gross carrying amount of the licence after revaluation.","es":""},"explanation":{"fr":"","en":"Approach: compute the carrying amount before revaluation, compare it with fair value, then set the gross amount. Revaluation covers the whole class traded on an active market (IAS 38, para. 72). Carrying amount before: 400,000 − 160,000 = 240,000; revalued amount: 300,000, fair value by reference to the active market (IAS 38, para. 75). The 60,000 increase is recognised in other comprehensive income, there being no earlier decrease to reverse (IAS 38, para. 85). As accumulated amortisation is eliminated against the gross amount, the gross amount becomes equal to the revalued amount: 300,000 (IAS 38, para. 80). Trap: comparing fair value with original cost. Rule to remember: the revaluation surplus is computed on the carrying amount, not on cost (IAS 38, paras. 75 and 85).","es":""},"common_error":{"fr":"","en":"Comparing fair value with the original cost rather than with the carrying amount.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"400000","unit":"EUR"},{"id":"accumulated_amortisation","value":"160000","unit":"EUR"},{"id":"fair_value","value":"300000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Acquisition cost of the licence","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated amortisation before revaluation","es":""},"value":"160000","unit":"EUR"},{"label":{"fr":"","en":"Fair value by reference to the active market","es":""},"value":"300000","unit":"EUR"}],"steps":[{"id":"REVALUATION_SURPLUS","label":{"fr":"","en":"Revaluation surplus (other comprehensive income)","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"GROSS_AFTER_REVALUATION","label":{"fr":"","en":"Gross carrying amount after revaluation","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000308","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION","IAS38.MEASUREMENT_MODEL.REVALUATION_INCREASE"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000601","tested_point":"VG.IAS38.000601","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"revaluation-rule"},"references":["IAS 38 §80","IAS 38 §75","IAS 38 §85"],"exercise":{"prompt":{"fr":"","en":"Taxis Solenne applies the revaluation model to its taxi licences, which are traded on an active market. At 30 June 20X3, a licence bought for {cost} shows accumulated amortisation of {accumulated_amortisation}; its fair value at that date reaches {fair_value}. Under its accounting policy, Taxis Solenne restates the gross carrying amount proportionately to the change in carrying amount. This asset has never suffered a decrease. Ignore deferred tax effects. Calculate the revaluation surplus and the accumulated amortisation after revaluation.","es":""},"explanation":{"fr":"","en":"Approach: compute the increase on the carrying amount, then adjust the gross amount and the accumulated amortisation in the same proportion. The carrying amount moves from 500,000 − 200,000 = 300,000 to the fair value of 375,000 (IAS 38, para. 75), i.e. +75,000 (+25%), recognised in other comprehensive income as there is no earlier decrease (IAS 38, para. 85). Case convention: the gross amount is restated proportionally, 500,000 × 1.25 = 625,000; the accumulated amortisation is adjusted to equal the difference, 625,000 − 375,000 = 250,000 (IAS 38, para. 80). Trap: leaving the accumulated amortisation unchanged or eliminating it when the case's method is proportional. Rule to remember: gross amount and accumulated amortisation are adjusted consistently with the revaluation of the carrying amount (IAS 38, para. 80).","es":""},"common_error":{"fr":"","en":"Leaving accumulated amortisation unchanged although the gross carrying amount is restated.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"500000","unit":"EUR"},{"id":"accumulated_amortisation","value":"200000","unit":"EUR"},{"id":"fair_value","value":"375000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Gross carrying amount before revaluation","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated amortisation before revaluation","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at 30 June 20X3","es":""},"value":"375000","unit":"EUR"}],"steps":[{"id":"REVALUATION_SURPLUS","label":{"fr":"","en":"Revaluation surplus","es":""},"answer":75000,"tolerance":0,"unit":"EUR"},{"id":"ACCUMULATED_AMORTISATION_AFTER","label":{"fr":"","en":"Accumulated amortisation after revaluation","es":""},"answer":250000,"tolerance":0,"unit":"EUR"}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000309","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000309","tested_point":"QST.IAS38.000309","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"revaluation-rule"},"references":["IAS 38 §82","IAS 38 §75"],"exercise":{"prompt":{"fr":"","en":"Laiterie Brocéliane revalues a milk production quota by reference to an active market. At 31 December 20X1, the quota is revalued to 240,000; it is amortised on a straight-line basis over its remaining useful life of 4 years. During 20X2, trading on that market ceases and no observable price is available at the year-end. No impairment loss is identified. What is the carrying amount of the quota at 31 December 20X2?","es":""},"explanation":{"fr":"","en":"When the fair value of a revalued asset can no longer be measured by reference to an active market, its carrying amount is the revalued amount at the date of the last revaluation by reference to the active market, less any subsequent accumulated amortisation and impairment losses (IAS 38, para. 82). Amortisation continues on the revalued amount (IAS 38, para. 75): 240,000 / 4 = 60,000; carrying amount at 31 December 20X2: 240,000 − 60,000 = 180,000.","es":""},"common_error":{"fr":"","en":"Reverting to historical cost as soon as the active market disappears.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its acquisition cost less amortisation accumulated since purchase, as for an asset that was never revalued.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes the quota back to its acquisition cost less amortisation since purchase, as if it had never been revalued. When fair value can no longer be measured by reference to an active market, the carrying amount is the revalued amount at the date of the last revaluation, less subsequent amortisation and impairment losses (IAS 38, para. 82). Historical cost is no longer the basis. Rule to remember: the basis becomes the last revalued amount, not the original cost (IAS 38, para. 82).","es":""}},{"id":"B","text":{"fr":"","en":"180,000, being the last revalued amount less the 20X2 amortisation.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The present value of the quota's expected cash flows, estimated at 210,000 by an expert.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer uses the discounted value of expected cash flows, estimated at 210,000 by an expert. A discounted value does not replace an active market: with no active market, the basis remains the last revalued amount, less subsequent amortisation (IAS 38, para. 82). The quota is not revalued on that basis. Rule to remember: with no active market, one does not revalue using a discounted value (IAS 38, paras. 75 and 82).","es":""}},{"id":"D","text":{"fr":"","en":"240,000, the last revalued amount remaining frozen until an active market returns.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer keeps 240,000, freezing the last revalued amount until an active market returns. The quota keeps being amortised: the carrying amount is the last revalued amount less subsequent amortisation (IAS 38, para. 82), i.e. 240,000 − 60,000 = 180,000. Keeping 240,000 would overstate the asset by 60,000 and understate the expense. Rule to remember: the last revalued amount continues to be amortised (IAS 38, paras. 75 and 82).","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000311","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION_INCREASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000311","tested_point":"QST.IAS38.000311","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"increase-decrease-rule"},"references":["IAS 38 §85"],"exercise":{"prompt":{"fr":"","en":"An entity applies the revaluation model to an intangible asset. At a previous revaluation, a decrease in the value of this asset was recognised in profit or loss. At the following year-end, the asset's fair value increases. How is this increase recognised?","es":""},"explanation":{"fr":"","en":"A revaluation increase is recognised in other comprehensive income and accumulated in the revaluation surplus, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss: that portion is recognised in profit or loss (IAS 38, para. 85).","es":""},"common_error":{"fr":"","en":"Putting the whole increase in other comprehensive income without reversing the earlier decrease taken to profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Entirely in other comprehensive income, the revaluation surplus being credited whatever the asset's history.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer puts the whole increase in other comprehensive income, whatever the asset's history. Yet an earlier decrease of the same asset was recognised in profit or loss: the increase first reverses it in profit or loss, and the balance goes to other comprehensive income (IAS 38, para. 85). Putting everything in OCI would leave profit understated by the amount of the reversal. Rule to remember: an increase first reverses the earlier decrease taken to profit or loss (IAS 38, para. 85).","es":""}},{"id":"B","text":{"fr":"","en":"In profit or loss to the extent of the previous decrease reversed, then in other comprehensive income.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Entirely in profit or loss, like any change in the fair value of a revalued asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer puts the whole increase in profit or loss, like any fair value change of a revalued asset. The part that reverses the earlier decrease goes to profit or loss; the excess goes to other comprehensive income and feeds the revaluation surplus (IAS 38, para. 85). Putting everything in profit or loss would inflate profit for the year. Rule to remember: the increase goes to profit or loss for the reversal of the earlier decrease (IAS 38, para. 85).","es":""}},{"id":"D","text":{"fr":"","en":"Directly in retained earnings, without passing through profit or loss or other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer puts the increase directly in retained earnings. The increase passes through profit or loss (reversal of the earlier decrease) or other comprehensive income (revaluation surplus) (IAS 38, para. 85); transferring a surplus to retained earnings relates to its realisation, not to recognising the increase (IAS 38, para. 87). Rule to remember: the increase passes through profit or loss or OCI, not directly through reserves (IAS 38, para. 85).","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000312","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION_INCREASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000312","tested_point":"QST.IAS38.000312","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"increase-decrease-rule"},"references":["IAS 38 §85"],"exercise":{"prompt":{"fr":"","en":"Taxis Orvanne revalues its class of taxi licences. Last year, licence No. 12 suffered a decrease of 15,000 recognised in profit or loss; licence No. 27, which has never suffered a decrease, did not change. This year, only licence No. 27 sees its fair value increase by 15,000. How is this increase recognised?","es":""},"explanation":{"fr":"","en":"The increase is recognised in other comprehensive income; it goes to profit or loss only to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss (IAS 38, para. 85). The decrease of licence No. 12 does not concern licence No. 27: the increase of 15,000 is therefore recognised entirely in other comprehensive income.","es":""},"common_error":{"fr":"","en":"Offsetting the increase on one licence against the decrease on another licence of the same class to decide where to book it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In profit or loss, because it offsets the decrease suffered last year by another licence in the same class.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes the increase to profit or loss, on the grounds that it offsets the decrease on licence no. 12. Reversal in profit or loss is assessed asset by asset: it covers an earlier decrease of the same asset taken to profit or loss (IAS 38, para. 85), and licence no. 27 has none. Offsetting between licences would distort profit by 15,000. Rule to remember: reversal in profit or loss is measured asset by asset, not across the class (IAS 38, para. 85).","es":""}},{"id":"B","text":{"fr":"","en":"In other comprehensive income, as no decrease of this licence was recognised in profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As a reduction of the amortisation charge of licence No. 27.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer reduces the amortisation charge of licence no. 27. A revaluation increase is not recognised as a reduction of amortisation: it is taken to other comprehensive income, except to the extent it reverses an earlier decrease of the same asset taken to profit or loss (IAS 38, para. 85). Rule to remember: a revaluation increase goes to other comprehensive income, not to lower amortisation (IAS 38, para. 85).","es":""}},{"id":"D","text":{"fr":"","en":"It is not recognised until licence No. 12 has recovered its value.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer suspends recognition of the increase until licence no. 12 has recovered its value. Each licence is revalued at its own fair value (IAS 38, para. 75) and the increase on licence no. 27 is recognised at the revaluation date, in other comprehensive income (IAS 38, para. 85). Rule to remember: each asset is revalued at its own fair value, without waiting for the others (IAS 38, paras. 75 and 85).","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000313","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION_INCREASE","IAS38.MEASUREMENT_MODEL.REVALUATION_DECREASE","IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000602","tested_point":"VG.IAS38.000602","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"increase-decrease-rule"},"references":["IAS 38 §85","IAS 38 §86","IAS 38 §107"],"exercise":{"prompt":{"fr":"","en":"Laiterie Morvelle holds a milk production quota acquired for {initial_amount} on 1 January 20X1. The quota, whose useful life is indefinite, is not amortised; it is measured under the revaluation model by reference to an active market. Its fair value is {fair_value_20x1} at 31 December 20X1, then {fair_value_20x2} at 31 December 20X2. Ignore deferred tax effects. Calculate, for 20X2, the portion of the increase recognised in profit or loss and the portion recognised in other comprehensive income.","es":""},"explanation":{"fr":"","en":"Approach: measure each change against the previous carrying amount, then split. In 20X1, the decrease of 300,000 − 270,000 = 30,000 goes to profit or loss, no revaluation surplus existing for this quota (IAS 38, para. 86). In 20X2, the increase of 320,000 − 270,000 = 50,000 first reverses the earlier decrease: 30,000 in profit or loss, the balance of 20,000 in other comprehensive income (IAS 38, para. 85). The quota, with an indefinite life, is not amortised (IAS 38, para. 107). Trap: putting the whole increase in OCI, or measuring it against acquisition cost. Rule to remember: an increase first reverses the earlier decrease in profit or loss, the balance goes to OCI (IAS 38, para. 85).","es":""},"common_error":{"fr":"","en":"Recognising the whole 20X2 increase in other comprehensive income.","es":""},"format":"CALCULATION","placeholders":[{"id":"initial_amount","value":"300000","unit":"EUR"},{"id":"fair_value_20x1","value":"270000","unit":"EUR"},{"id":"fair_value_20x2","value":"320000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Acquisition cost of the quota","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at 31 December 20X1","es":""},"value":"270000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at 31 December 20X2","es":""},"value":"320000","unit":"EUR"}],"steps":[{"id":"GAIN_IN_PROFIT_OR_LOSS","label":{"fr":"","en":"Portion of the increase recognised in profit or loss","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"INCREASE_IN_OCI","label":{"fr":"","en":"Portion of the increase recognised in other comprehensive income","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GAIN_IN_PROFIT_OR_LOSS","meaning":{"fr":"","en":"Portion of the increase recognised in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Acquisition cost of the quota","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value at 31 December 20X1","es":""},"value":270000,"unit":"EUR"}],"result":30000,"unit":"EUR","rationale":{"fr":"","en":"In 20X1, the decrease of 300,000 − 270,000 = 30,000 goes to profit or loss, no revaluation surplus existing for this quota (IAS 38, para. 86).","es":""}}],"rationale":{"fr":"","en":"an increase first reverses the earlier decrease in profit or loss, the balance goes to OCI (IAS 38, para. 85).","es":""},"references":["REF.IAS38.85","REF.IAS38.86","REF.IAS38.107"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000314","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION_INCREASE","IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000602","tested_point":"VG.IAS38.000602","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"increase-decrease-rule"},"references":["IAS 38 §85","IAS 38 §107"],"exercise":{"prompt":{"fr":"","en":"Les Vergers Haldane hold a transferable irrigation right, with an indefinite useful life and not amortised, revalued by reference to an active market. At the previous revaluation, a decrease of {previous_decrease_in_pl} was recognised in profit or loss for this right, bringing its carrying amount down to {carrying_amount}. No other revaluation has taken place since. At the year-end, its fair value amounts to {fair_value}. Ignore deferred tax effects. Calculate the portion of the increase recognised in profit or loss and the portion recognised in other comprehensive income.","es":""},"explanation":{"fr":"","en":"Approach: compute the increase, then compare it with the earlier decrease taken to profit or loss. The increase is 180,000 − 155,000 = 25,000. It is recognised in profit or loss to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss (IAS 38, para. 85). That decrease, 45,000, exceeds the increase: the 25,000 goes entirely to profit or loss and nothing to other comprehensive income. As the right is not amortised (IAS 38, para. 107), the earlier decrease has not been altered by amortisation. Trap: taking the increase to OCI, or reversing 45,000, more than the increase. Rule to remember: the reversal in profit or loss is capped by the increase recognised and by the earlier decrease (IAS 38, para. 85).","es":""},"common_error":{"fr":"","en":"Recognising the increase in other comprehensive income.","es":""},"format":"CALCULATION","placeholders":[{"id":"previous_decrease_in_pl","value":"45000","unit":"EUR"},{"id":"carrying_amount","value":"155000","unit":"EUR"},{"id":"fair_value","value":"180000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Previous decrease recognised in profit or loss","es":""},"value":"45000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount before revaluation","es":""},"value":"155000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the year-end","es":""},"value":"180000","unit":"EUR"}],"steps":[{"id":"GAIN_IN_PROFIT_OR_LOSS","label":{"fr":"","en":"Portion of the increase recognised in profit or loss","es":""},"answer":25000,"tolerance":0,"unit":"EUR"},{"id":"INCREASE_IN_OCI","label":{"fr":"","en":"Portion of the increase recognised in other comprehensive income","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GAIN_IN_PROFIT_OR_LOSS","meaning":{"fr":"","en":"Portion of the increase recognised in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at the year-end","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount before revaluation","es":""},"value":155000,"unit":"EUR"}],"result":25000,"unit":"EUR"}],"rationale":{"fr":"","en":"the reversal in profit or loss is capped by the increase recognised and by the earlier decrease (IAS 38, para. 85).","es":""},"references":["REF.IAS38.85","REF.IAS38.107"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000317","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION_DECREASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000317","tested_point":"QST.IAS38.000317","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"increase-decrease-rule"},"references":["IAS 38 §86"],"exercise":{"prompt":{"fr":"","en":"A revalued intangible asset has a revaluation surplus with a credit balance of 20,000 in equity. At the year-end, its fair value decreases by 35,000. How is this decrease recognised?","es":""},"explanation":{"fr":"","en":"A revaluation decrease is recognised in profit or loss, except to the extent of the credit balance in the revaluation surplus of the same asset, which is debited in other comprehensive income (IAS 38, para. 86). As the available surplus is 20,000, that portion of the decrease is recognised in other comprehensive income; the balance of 35,000 − 20,000 = 15,000 is recognised in profit or loss.","es":""},"common_error":{"fr":"","en":"Taking the whole decrease to profit or loss without using the existing revaluation surplus balance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"35,000 in profit or loss; the revaluation surplus remains unchanged until the asset is derecognised.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes the whole 35,000 decrease to profit or loss and leaves the revaluation surplus unchanged until the asset is disposed of. Yet the same asset's revaluation surplus first absorbs the decrease, up to its credit balance of 20,000, in other comprehensive income; the excess goes to profit or loss (IAS 38, para. 86). Profit would be charged 20,000 too much. Rule to remember: a decrease is first charged against the revaluation surplus of the same asset (IAS 38, para. 86).","es":""}},{"id":"B","text":{"fr":"","en":"20,000 in other comprehensive income and 15,000 in profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"35,000 in other comprehensive income, the revaluation surplus becoming a debit balance.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes the whole decrease to other comprehensive income, the surplus becoming a debit of 15,000. Charging other comprehensive income is limited to the credit balance of the same asset's surplus; beyond 20,000, the decrease is recognised in profit or loss (IAS 38, para. 86). Rule to remember: the revaluation surplus does not become a debit: the excess decrease goes to profit or loss (IAS 38, para. 86).","es":""}},{"id":"D","text":{"fr":"","en":"15,000 in other comprehensive income and 20,000 in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer swaps the amounts: 15,000 in other comprehensive income and 20,000 in profit or loss. It is the surplus's credit balance, 20,000, that is charged to other comprehensive income; the excess of 15,000 (35,000 − 20,000) goes to profit or loss (IAS 38, para. 86). Profit would be charged 5,000 too much. Rule to remember: the part charged to the surplus equals its balance, the rest goes to profit or loss (IAS 38, para. 86).","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000318","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION_DECREASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000318","tested_point":"QST.IAS38.000318","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"increase-decrease-rule"},"references":["IAS 38 §86"],"exercise":{"prompt":{"fr":"","en":"Coopérative Sylvaine revalues its class of production quotas. The North quota has a revaluation surplus with a credit balance of 40,000; the South quota has never been revalued upwards. At the year-end, only the fair value of the South quota falls, by 10,000. How is this decrease recognised?","es":""},"explanation":{"fr":"","en":"A revaluation decrease is recognised in profit or loss, except to the extent of the credit balance in the revaluation surplus of the same asset (IAS 38, para. 86). The surplus of 40,000 relates to the North quota: it cannot absorb the decrease of the South quota, which is therefore recognised in profit or loss for 10,000.","es":""},"common_error":{"fr":"","en":"Offsetting the decrease of one asset against the revaluation surplus of another asset in the class.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In other comprehensive income, against the revaluation surplus of the North quota, which belongs to the same class.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer charges the decrease on the South quota against the revaluation surplus of the North quota, because they belong to the same class. The charge is assessed asset by asset: it is the credit balance of the same asset's surplus that absorbs the decrease (IAS 38, para. 86), and the South quota has none. Using the North quota's surplus would hide a 10,000 loss. Rule to remember: one asset's revaluation surplus does not absorb another asset's decrease (IAS 38, para. 86).","es":""}},{"id":"B","text":{"fr":"","en":"In profit or loss, as the South quota has no revaluation surplus of its own.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is not recognised, as the class as a whole remains above its cost.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer does not recognise the decrease, the class remaining overall above cost. Each asset is brought to its fair value (IAS 38, para. 75) and the South quota's decrease is recognised, in profit or loss for lack of its own surplus (IAS 38, para. 86); there is no offsetting at class level. Rule to remember: an asset's decrease in value is recognised, with no offset against other assets (IAS 38, paras. 75 and 86).","es":""}},{"id":"D","text":{"fr":"","en":"Directly as a reduction of reserves, without passing through profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer takes the decrease directly as a reduction of reserves. The decrease passes through profit or loss, or through other comprehensive income up to the balance of a surplus specific to the asset (IAS 38, para. 86); it is not charged directly to reserves. Here the South quota has no surplus: the decrease goes to profit or loss. Rule to remember: a revalued decrease passes through profit or loss or the asset's surplus, not directly through reserves (IAS 38, para. 86).","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000319","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION_DECREASE","IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000604","tested_point":"VG.IAS38.000604","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"increase-decrease-rule"},"references":["IAS 38 §86","IAS 38 §107"],"exercise":{"prompt":{"fr":"","en":"Sucrerie Vallarde holds a transferable sugar beet production quota, with an indefinite useful life and not amortised, measured under the revaluation model. Before the year-end revaluation, its carrying amount is {carrying_amount} and the revaluation surplus relating to this quota has a credit balance of {surplus_balance}. Fair value measured by reference to the active market is {fair_value}. Ignore deferred tax effects. Calculate the portion of the decrease recognised in other comprehensive income and the portion recognised in profit or loss.","es":""},"explanation":{"fr":"","en":"Approach: compute the decrease, then charge it against the same asset's surplus before recognising the balance in profit or loss. The decrease is 260,000 − 210,000 = 50,000. It is charged to other comprehensive income up to the credit balance of the same asset's surplus, i.e. 35,000, and the balance of 50,000 − 35,000 = 15,000 is recognised in profit or loss (IAS 38, para. 86). As the quota is not amortised (IAS 38, para. 107), no amortisation for the year enters the computation. Trap: taking everything to profit or loss without using the surplus, or charging the whole decrease to other comprehensive income beyond the balance. Rule to remember: a decrease is charged first against the same asset's surplus; the excess goes to profit or loss (IAS 38, para. 86).","es":""},"common_error":{"fr":"","en":"Recognising the whole decrease of 50,000 in profit or loss without using the existing surplus.","es":""},"format":"CALCULATION","placeholders":[{"id":"surplus_balance","value":"35000","unit":"EUR"},{"id":"carrying_amount","value":"260000","unit":"EUR"},{"id":"fair_value","value":"210000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Credit balance of the quota's revaluation surplus","es":""},"value":"35000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount before revaluation","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the year-end","es":""},"value":"210000","unit":"EUR"}],"steps":[{"id":"DECREASE_IN_OCI","label":{"fr":"","en":"Portion of the decrease recognised in other comprehensive income","es":""},"answer":35000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_IN_PROFIT_OR_LOSS","label":{"fr":"","en":"Portion of the decrease recognised in profit or loss","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LOSS_IN_PROFIT_OR_LOSS","meaning":{"fr":"","en":"Portion of the decrease recognised in profit or loss","es":""},"expression":"(a - b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount before revaluation","es":""},"value":260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value at the year-end","es":""},"value":210000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Credit balance of the quota's revaluation surplus","es":""},"value":35000,"unit":"EUR"}],"result":15000,"unit":"EUR","rationale":{"fr":"","en":"It is charged to other comprehensive income up to the credit balance of the same asset's surplus, i.e. 35,000, and the balance of 50,000 − 35,000 = 15,000 is recognised in profit or loss (IAS 38, para. 86).","es":""}}],"rationale":{"fr":"","en":"a decrease is charged first against the same asset's surplus; the excess goes to profit or loss (IAS 38, para. 86).","es":""},"references":["REF.IAS38.86","REF.IAS38.107"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000320","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION_DECREASE","IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000604","tested_point":"VG.IAS38.000604","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"increase-decrease-rule"},"references":["IAS 38 §86","IAS 38 §107"],"exercise":{"prompt":{"fr":"","en":"Air Méridane owns a transferable landing slot, not amortised because its useful life is indefinite, which it revalues by reference to an active market. The revaluation surplus accumulated for this slot amounts to {surplus_balance}. At the reporting date, the slot is carried at {carrying_amount} before revaluation, while the market now values it at {fair_value}. Ignore deferred tax effects. Which portions of the decrease go to other comprehensive income and to profit or loss respectively?","es":""},"explanation":{"fr":"","en":"Approach: compute the decrease, then check whether the surplus balance covers it in full. The decrease is 410,000 − 388,000 = 22,000. It is recognised in profit or loss except up to the credit balance of the same asset's revaluation surplus (IAS 38, para. 86). The surplus, 60,000, covers it entirely: 22,000 is charged to other comprehensive income, nothing is recognised in profit or loss and the remaining surplus is 38,000. The slot is not amortised (IAS 38, para. 107). Trap: taking the decrease to profit or loss despite a sufficient surplus, or charging 60,000. Rule to remember: if the surplus covers the decrease, nothing goes to profit or loss (IAS 38, para. 86).","es":""},"common_error":{"fr":"","en":"Recognising the decrease in profit or loss despite a sufficient revaluation surplus.","es":""},"format":"CALCULATION","placeholders":[{"id":"surplus_balance","value":"60000","unit":"EUR"},{"id":"carrying_amount","value":"410000","unit":"EUR"},{"id":"fair_value","value":"388000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Accumulated revaluation surplus of the slot","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount before revaluation","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the year-end","es":""},"value":"388000","unit":"EUR"}],"steps":[{"id":"DECREASE_IN_OCI","label":{"fr":"","en":"Portion of the decrease recognised in other comprehensive income","es":""},"answer":22000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_IN_PROFIT_OR_LOSS","label":{"fr":"","en":"Portion of the decrease recognised in profit or loss","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DECREASE_IN_OCI","meaning":{"fr":"","en":"Portion of the decrease recognised in other comprehensive income","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount before revaluation","es":""},"value":410000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value at the year-end","es":""},"value":388000,"unit":"EUR"}],"result":22000,"unit":"EUR"}],"rationale":{"fr":"","en":"if the surplus covers the decrease, nothing goes to profit or loss (IAS 38, para. 86).","es":""},"references":["REF.IAS38.86","REF.IAS38.107"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000323","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000323","tested_point":"QST.IAS38.000323","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §88","IAS 38 §91"],"exercise":{"prompt":{"fr":"","en":"What does an indefinite useful life mean for an intangible asset?","es":""},"explanation":{"fr":"","en":"The entity determines whether the useful life is finite or indefinite. It treats it as indefinite when its analysis of all relevant factors cannot place any foreseeable end to the asset's contribution to the entity's net cash flows (IAS 38, para. 88). Indefinite does not mean infinite: even with no foreseeable end, the asset may one day stop being used (IAS 38, para. 91), and a life that is merely long remains a finite life.","es":""},"common_error":{"fr":"","en":"Confusing indefinite useful life with infinite life, as if the asset had to be used for ever.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The asset will generate cash flows for eternity, as no event could ever put an end to its use.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer equates \"indefinite\" with \"eternal\". That is the common confusion between indefinite and infinite life: an indefinite useful life does not mean infinite (IAS 38, para. 91). It reflects the absence of a foreseeable limit to the period over which net cash flows are generated, not a guarantee of endless use (IAS 38, para. 88). Rule to remember: indefinite is not infinite: it is the absence of a foreseeable end (IAS 38, paras. 88 and 91).","es":""}},{"id":"B","text":{"fr":"","en":"Having considered all relevant factors, no horizon can be set beyond which the asset would stop bringing net cash flows to the entity.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Its useful life exceeds twenty years.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer makes twenty years the threshold for an indefinite life. A long but foreseeable life is still a finite life: the life is indefinite when no foreseeable limit can be set on the generation of net cash flows (IAS 38, para. 88), not from a given number of years. Rule to remember: a useful life is indefinite through the absence of a foreseeable limit, not through its length (IAS 38, para. 88).","es":""}},{"id":"D","text":{"fr":"","en":"Management has not yet taken the time to estimate its useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer sees indefinite as no estimate having been made. The entity assesses whether the life is finite or indefinite (IAS 38, para. 88), taking all relevant factors into account (IAS 38, para. 90); concluding on an indefinite life is the result of that analysis, not a sign that it was not done. Rule to remember: an indefinite life is a conclusion based on the analysis of factors, not a lack of estimate (IAS 38, paras. 88 and 90).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000324","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000324","tested_point":"QST.IAS38.000324","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §88"],"exercise":{"prompt":{"fr":"","en":"An entity concludes that an intangible asset has a finite useful life. In what form can that life be expressed?","es":""},"explanation":{"fr":"","en":"When the useful life is finite, the entity assesses its length, or the number of production or similar units constituting that useful life (IAS 38, para. 88). Expressing it in units makes it possible to reflect use that does not depend solely on the passage of time.","es":""},"common_error":{"fr":"","en":"Believing that a finite useful life must necessarily be expressed in years.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only as a number of years, counted from the date the asset was acquired.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer restricts the life to a number of years counted from acquisition. The entity assesses the length, or the number of production or similar units constituting that useful life (IAS 38, para. 88): expressing it in units reflects use that may vary with the asset's usage rather than with time. Rule to remember: a finite useful life is expressed as a period or as production or similar units (IAS 38, para. 88).","es":""}},{"id":"B","text":{"fr":"","en":"As a length of time, or a number of production or similar units.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only as the legal term of the rights attached to the asset, whatever its use.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer reduces the useful life to the legal term of the rights, whatever the use of the asset. The useful life of an asset arising from contractual or legal rights does not exceed the term of those rights, but may be shorter depending on the period of use expected by the entity (IAS 38, para. 94). The legal term is therefore a ceiling, not the form of expression (IAS 38, para. 88). Rule to remember: the legal term caps the useful life, it does not replace it (IAS 38, paras. 88 and 94).","es":""}},{"id":"D","text":{"fr":"","en":"As a percentage of the total revenue expected from the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer expresses the life as a percentage of total expected revenue. Paragraph 88 refers to a period or a number of production or similar units; a percentage of revenue is not among them (IAS 38, para. 88). Useful life should not be confused with the amortisation method. Rule to remember: useful life is expressed in time or in production units, not as a percentage of revenue (IAS 38, para. 88).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000325","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT","IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000325","tested_point":"QST.IAS38.000325","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §88","IAS 38 §90","IAS 38 §107","IAS 38 §109"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements on assessing the useful life of an intangible asset are correct?","es":""},"explanation":{"fr":"","en":"Useful life is finite or indefinite, the latter meaning there is no foreseeable limit to the generation of net cash inflows (IAS 38, para. 88). Many factors are considered, including the period of control over the asset and the useful life of other assets on which it depends (IAS 38, para. 90). An asset with an indefinite useful life is not amortised (IAS 38, para. 107), but its useful life is reviewed each period; a change to a finite life is a change in estimate (IAS 38, para. 109).","es":""},"common_error":{"fr":"","en":"Believing that an indefinite life is infinite and so no longer needs to be reassessed.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An indefinite useful life means the asset will be used without end; it is therefore never reassessed.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement confuses « indefinite » with « infinite »: an indefinite life means no foreseeable limit emerges today, not that the asset lasts forever. The entity reviews each period whether the facts still support it, and a switch to a finite life is a change in estimate (IAS 38, para. 109). Rule to remember: indefinite does not mean infinite: the asset is not amortised (IAS 38, para. 107), but its life is reviewed every period (IAS 38, para. 109).","es":""}},{"id":"B","text":{"fr":"","en":"The useful life of other assets on which the intangible asset depends is one of the factors to take into account.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An intangible asset with an indefinite useful life is not amortised.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An intangible asset with an indefinite useful life is amortised over a standard period set by the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"No standard period is set for such an asset: an intangible asset with an indefinite useful life is not amortised (IAS 38, para. 107). Imposing a standard period would treat as finite a life the entity has assessed as indefinite. Example: a long-established brand bears no annual charge as long as its life remains indefinite. Rule to remember: an indefinite useful life rules out amortisation, even over a flat period (IAS 38, para. 107).","es":""}},{"id":"E","text":{"fr":"","en":"The entity reviews each period whether events and circumstances still support an indefinite useful life.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The period of the entity's control over the asset has no bearing on its useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"The period over which the entity controls the asset is one of the factors in useful life (IAS 38, para. 90). A right whose control ends in a known number of years can therefore lead to a shorter life, even if the asset remains useful beyond that. Example: a right controlled for 6 years is not reasoned like an asset with no horizon. Rule to remember: the period over which the entity controls the asset is a factor in its useful life (IAS 38, para. 90).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000326","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000326","tested_point":"QST.IAS38.000326","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §88","IAS 38 §90"],"exercise":{"prompt":{"fr":"","en":"Imprimerie Dalbret acquires a perpetual licence for a control module that only works with its current management platform. The platform vendor has announced the end of support in 4 years and Dalbret has planned its migration to another system at that date; the module will not be compatible with the new system. What useful life should be used for the module?","es":""},"explanation":{"fr":"","en":"The entity assesses whether the useful life is finite or indefinite (IAS 38, para. 88), taking into account the relevant factors, including expected usage, technical obsolescence and the useful life of other assets on which the intangible asset depends (IAS 38, para. 90). The module can only work with a platform that will be abandoned in 4 years: its period of generating cash flows is foreseeably limited, despite the perpetual nature of the licence.","es":""},"common_error":{"fr":"","en":"Relying on the perpetual nature of the licence to retain an indefinite life.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An indefinite useful life, since the licence is perpetual and has no expiry date.","es":""},"correct":false,"feedback":{"fr":"","en":"A licence with no expiry does not make the life indefinite: the module depends on the current platform, whose support ends in 4 years, and the useful life of other assets on which the asset depends is a factor to consider (IAS 38, para. 90). Here the generation of inflows is therefore limited in a foreseeable way (IAS 38, para. 88). The perpetual nature of the licence does not change this. Rule to remember: a licence with no expiry date does not make the life indefinite: a foreseeable limit on cash flows, such as dependence on a platform, makes it finite (IAS 38, paras. 88 and 90).","es":""}},{"id":"B","text":{"fr":"","en":"A finite life of 4 years, linked to the platform on which the module depends.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A finite life of 10 years, the usual period used for management software.","es":""},"correct":false,"feedback":{"fr":"","en":"A usual 10-year life for management software does not replace analysing the entity's own facts: useful life results from factors such as expected usage and dependence on other assets (IAS 38, para. 90). Here the migration planned in 4 years sets the horizon; 10 years would exceed the period in which the module will work and spread the cost over too long a time. Rule to remember: useful life is determined from the facts of the asset itself, not from a customary period (IAS 38, para. 90).","es":""}},{"id":"D","text":{"fr":"","en":"No life at all: the module is not amortised until the migration has taken place.","es":""},"correct":false,"feedback":{"fr":"","en":"Amortisation does not wait for the migration: the module has a finite useful life of 4 years, and amortisation starts as soon as it is available for use (IAS 38, para. 97). Deferring the charge until the migration would treat as non-amortisable an asset whose benefits are already being consumed. Rule to remember: an asset with a finite life is amortised from the date it is available for use (IAS 38, para. 97).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000327","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT","IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000327","tested_point":"QST.IAS38.000327","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §88","IAS 38 §90","IAS 38 §94","IAS 38 §96"],"exercise":{"prompt":{"fr":"","en":"Thermique Escaut acquires the brand of a range of oil-fired boilers that is firmly established in its market. Regulation already adopted will ban the sale of these boilers in 7 years. The brand is closely associated with this technology and the entity has neither the intention nor the ability to use it for other products; no cash flows are expected from it after the ban. Its legal protection is renewable without limit at a low cost. What conclusion should be reached on the brand's useful life?","es":""},"explanation":{"fr":"","en":"Useful life is indefinite only when there is no foreseeable limit to the generation of net cash inflows (IAS 38, para. 88). The relevant factors include the expected usage of the asset and its commercial obsolescence (IAS 38, para. 90). For an asset arising from legal rights, the term of the rights is a ceiling; renewal periods are included in it only where evidence supports renewal without significant cost (IAS 38, paras. 94 and 96). Even then, the useful life may be shorter than that ceiling depending on the expected period of use (IAS 38, para. 94). Here, as no cash flows are expected after the sales ban, the ban sets a foreseeable limit of 7 years: the useful life is finite, despite rights renewable at a low cost.","es":""},"common_error":{"fr":"","en":"Retaining an indefinite life because the legal protection is renewable at low cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Indefinite useful life, since the brand's legal protection can be renewed without limit and at a low cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Rights renewable at low cost set a ceiling, not the useful life: it can be shorter depending on the period of expected use (IAS 38, para. 94). Here no inflows are expected after the sales ban in 7 years, which sets a foreseeable limit (IAS 38, para. 88). In the financial statements, the brand is therefore amortised over 7 years instead of bearing no charge. Rule to remember: rights renewable at low cost set a ceiling, not the useful life, which a foreseeable limit on cash flows can shorten (IAS 38, paras. 88 and 94).","es":""}},{"id":"B","text":{"fr":"","en":"Finite useful life of 7 years, the generation of cash flows being limited by the sales ban.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Finite useful life equal to the current period of legal protection, without taking the ban into account.","es":""},"correct":false,"feedback":{"fr":"","en":"Relying on the current legal protection ignores the sales ban: expected use and commercial obsolescence weigh on the life (IAS 38, para. 90), and the legal term is a ceiling (IAS 38, para. 94). Here the rights remain renewable, but no inflows are expected beyond 7 years, and it is this limit that determines the life. Rule to remember: the term of the rights is a ceiling; expected use and commercial obsolescence can shorten it (IAS 38, paras. 90 and 94).","es":""}},{"id":"D","text":{"fr":"","en":"Indefinite useful life, as a well-known brand is not meant to disappear.","es":""},"correct":false,"feedback":{"fr":"","en":"A brand's reputation is not enough to make it indefinite: indefinite requires the absence of a foreseeable limit to the generation of inflows (IAS 38, para. 88). Here a regulation already adopted will ban sales in 7 years and the brand is tied to that technology. A brand that is strong today can therefore have a finite useful life. Rule to remember: a brand's reputation does not make its life indefinite: there must be no foreseeable limit to the period of net cash inflows (IAS 38, para. 88).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000328","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT","IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS","IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000328","tested_point":"QST.IAS38.000328","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §88","IAS 38 §90","IAS 38 §94","IAS 38 §107","IAS 38 §108","IAS 38 §109"],"exercise":{"prompt":{"fr":"","en":"Eaux de Sorbiers acquires a mineral water brand that has been marketed for more than a century. Its legal protection, for a term of 10 years, is renewable without limit for a small fee, and the entity has always renewed its other brands. Market studies show stable demand, the product is not exposed to technological obsolescence and the advertising expenditure needed to maintain the brand is moderate and budgeted. The entity intends to exploit the brand with no time limit. What treatment should be applied?","es":""},"explanation":{"fr":"","en":"No factor sets a foreseeable limit to the generation of net cash inflows: stable demand, no obsolescence, moderate and funded maintenance expenditure, intention to keep the brand (IAS 38, paras. 88 and 90). Renewals of the legal protection are taken into account because there is evidence that they will occur without significant cost (IAS 38, para. 94). The useful life is therefore indefinite: the brand is not amortised (IAS 38, para. 107), it is tested for impairment annually and whenever there is an indication (IAS 38, para. 108), and its useful life is reviewed each period (IAS 38, para. 109).","es":""},"common_error":{"fr":"","en":"Amortising, out of prudence, a brand whose useful life is indefinite.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Amortise the brand over 10 years, the term of its current legal protection, without considering possible renewals.","es":""},"correct":false,"feedback":{"fr":"","en":"Amortising over 10 years means ignoring the renewals, whereas they are supported here (consistent renewals, low fees) and can therefore be included (IAS 38, paras. 94 and 96). Moreover, no factor limits the generation of inflows (IAS 38, paras. 88 and 90). In the financial statements, amortising wrongly would reduce profit each year and the brand's carrying amount. Rule to remember: supported, low-cost renewals are built into the assessment, so the life is not capped at the current protection period (IAS 38, para. 94).","es":""}},{"id":"B","text":{"fr":"","en":"Do not amortise the brand and never reassess its useful life again, since it is endless.","es":""},"correct":false,"feedback":{"fr":"","en":"Indefinite does not mean unmonitored: the life is reviewed each period to check that the facts still support it (IAS 38, para. 109), and the brand is still tested every year (IAS 38, para. 108). A lasting fall in demand could, for instance, set a foreseeable limit and call the indefinite life into question. Rule to remember: an indefinite life is still monitored: an impairment test every year (IAS 38, para. 108) and a review of the life every period (IAS 38, para. 109).","es":""}},{"id":"C","text":{"fr":"","en":"Indefinite useful life: no amortisation, annual impairment test and review of the life each period.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Amortise the brand over a long standard period out of prudence, as no precise life can be estimated.","es":""},"correct":false,"feedback":{"fr":"","en":"A prudential flat-rate amortisation is not provided for: an asset with an indefinite useful life is not amortised (IAS 38, para. 107). Being unable to estimate a precise life is not a reason, since here the absence of a foreseeable limit supports the indefinite life (IAS 38, para. 88). An arbitrary charge would distort profit and the carrying amount. Rule to remember: with an indefinite life there is no amortisation charge, not even a prudent or flat one (IAS 38, para. 107).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000329","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT","IAS38.DISCLOSURE.INDEFINITE_LIFE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000329","tested_point":"QST.IAS38.000020","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §122","IAS 38 §88"],"exercise":{"prompt":{"fr":"","en":"An entity concludes that an acquired brand has an indefinite useful life. What information must it disclose in this respect in the notes?","es":""},"explanation":{"fr":"","en":"For an intangible asset whose useful life is assessed as indefinite (IAS 38, para. 88), the entity discloses its carrying amount and the reasons supporting that assessment, describing the factors that played a significant role (IAS 38, para. 122). The documentation of the useful life analysis feeds directly into this disclosure.","es":""},"common_error":{"fr":"","en":"Believing that a non-amortised asset requires no disclosure in the notes.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No specific information, since the brand is not amortised and generates no amortisation charge.","es":""},"correct":false,"feedback":{"fr":"","en":"Not amortising a brand does not remove the need for disclosure: for each intangible asset with an indefinite useful life, the entity discloses its carrying amount and the reasons for that assessment (IAS 38, para. 122). Readers need to understand why no charge is recognised. Example: the note describes the factors showing the absence of a foreseeable limit. Rule to remember: the notes give the carrying amount and the reasons for the indefinite life even though the asset is not amortised (IAS 38, para. 122).","es":""}},{"id":"B","text":{"fr":"","en":"The amortisation charge that would have been recognised had the brand been amortised over twenty years.","es":""},"correct":false,"feedback":{"fr":"","en":"A hypothetical charge is not requested information: no notional charge is presented for a non-amortised asset. The note gives the carrying amount and the reasons for the indefinite life, describing the determining factors (IAS 38, para. 122). Comparing with a hypothetical twenty-year amortisation meets no requirement of the standard. Rule to remember: for an asset with an indefinite useful life, the notes cover its carrying amount and the reasons for that assessment, not a hypothetical amortisation (IAS 38, para. 122).","es":""}},{"id":"C","text":{"fr":"","en":"Its carrying amount and the reasons for the indefinite life, including the significant factors.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Only the result of the impairment test, without justifying the life adopted.","es":""},"correct":false,"feedback":{"fr":"","en":"The impairment test result does not replace the justification of the life: the note gives the reasons for the assessment and describes the determining factors, taking into account the list in para. 90 (IAS 38, paras. 122 and 123). A test presented without justification would leave the reader with no explanation for the absence of amortisation. Rule to remember: the impairment test does not replace the description of the factors that played a significant role in the indefinite life (IAS 38, para. 122).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000330","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000330","tested_point":"QST.IAS38.000330","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §90","IAS 38 §88"],"exercise":{"prompt":{"fr":"","en":"In a workpaper, the accounting team of Studio Kalimba concludes on an indefinite useful life for an acquired video game franchise. The only documented justification is management's intention to keep publishing games under this franchise. What should be completed as a priority?","es":""},"explanation":{"fr":"","en":"Assessing an indefinite useful life requires the absence of a foreseeable limit to the generation of net cash inflows (IAS 38, para. 88), established in the light of many factors: expected usage, typical product life cycles, technical, technological and commercial obsolescence, stability of the industry, required maintenance expenditure, period of control (IAS 38, para. 90). In an industry with short cycles such as video games, these factors must be analysed and documented; intention alone is not enough.","es":""},"common_error":{"fr":"","en":"Treating the intention to keep operating as proof of no foreseeable limit.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: management's intention to continue exploiting the franchise is enough to justify an indefinite useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"Management's intention is one element among others: an indefinite life requires the absence of a foreseeable limit to the generation of inflows, assessed on many factors (IAS 38, paras. 88 and 90). In video games, with short life cycles, wanting to keep publishing games does not show that the franchise generates inflows without limit. In the financial statements, an unjustified indefinite life would remove the charge and overstate profit. Rule to remember: management's intention alone does not demonstrate the absence of a foreseeable limit on cash flows (IAS 38, paras. 88 and 90).","es":""}},{"id":"B","text":{"fr":"","en":"An amortisation schedule over a standard period, attached to the file for information.","es":""},"correct":false,"feedback":{"fr":"","en":"A flat-rate amortisation plan does not document the assessment of the life: it would replace the analysis with an arbitrary period. The relevant factors must be analysed (IAS 38, para. 90) to conclude between finite and indefinite. If the analysis leads to a finite life, amortisation follows from that life, not from a flat rate. Rule to remember: the amortisation period follows from the useful life assessed on the facts, not from a flat period (IAS 38, para. 90).","es":""}},{"id":"C","text":{"fr":"","en":"Analysis of the relevant factors: life cycles, obsolescence, industry stability, maintenance spending.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A mere legal certificate on the copyright protection attached to the franchise.","es":""},"correct":false,"feedback":{"fr":"","en":"A legal attestation covers one factor, legal limits on use, whereas para. 90 lists many others: life cycles, obsolescence, industry stability, maintenance expenditure (IAS 38, para. 90). Protected copyrights can coexist with a franchise whose commercial appeal is declining. Rule to remember: legal protection is one factor among others in assessing useful life (IAS 38, para. 90).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000332","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000332","tested_point":"QST.IAS38.000332","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §90"],"exercise":{"prompt":{"fr":"","en":"Which of the following facts are relevant factors that may lead an entity to adopt a shorter useful life for an intangible asset?","es":""},"explanation":{"fr":"","en":"To determine useful life, the entity considers many factors, including technical, technological or commercial obsolescence, the period of control over the asset and legal or similar limits on its use, as well as the useful life of other assets on which it depends (IAS 38, para. 90). The measurement model adopted, the price paid or tax considerations are not useful life factors.","es":""},"common_error":{"fr":"","en":"Treating the purchase price or the measurement model as a useful life factor.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity has chosen the revaluation model for the asset's class.","es":""},"correct":false,"feedback":{"fr":"","en":"Choosing the revaluation model concerns the subsequent measurement of the class, not the period over which the asset generates benefits. The useful life factors are expected usage, obsolescence, the period of control, legal limits and dependence on other assets (IAS 38, para. 90). Adopting revaluation therefore does not shorten the life. Rule to remember: the measurement model chosen for the class is not among the factors in useful life (IAS 38, para. 90).","es":""}},{"id":"B","text":{"fr":"","en":"The right to use the asset ends before the intended period of use.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The acquisition price of the asset is particularly high.","es":""},"correct":false,"feedback":{"fr":"","en":"A high purchase price says nothing about the period of use: an expensive asset can have a long or a short life. The relevant factors are obsolescence, the period of control, legal limits and dependence on other assets (IAS 38, para. 90). Cost influences the amount of the charge, not the life. Rule to remember: the price paid affects the amount of the charge, not the useful life (IAS 38, para. 90).","es":""}},{"id":"D","text":{"fr":"","en":"A competing technology is expected to make the asset obsolete shortly.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The asset can only work with equipment whose withdrawal is scheduled.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"Management prefers a higher amortisation charge to reduce taxable profit.","es":""},"correct":false,"feedback":{"fr":"","en":"A higher amortisation charge to reduce taxable profit pursues a tax objective, not a useful life factor. The life reflects expected use and the para. 90 factors (IAS 38, para. 90): shortening it for tax reasons would distort accounting profit and the asset's carrying amount. Rule to remember: a tax objective is not a factor in useful life; the life reflects expected use (IAS 38, para. 90).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000333","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000333","tested_point":"QST.IAS38.000333","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"contractual-rights-rule"},"references":["IAS 38 §94"],"exercise":{"prompt":{"fr":"","en":"An entity acquires a licence to exploit a patent for a contractual term of 6 years, not renewable. It plans to use the technology for only 4 years, then replace it with an internally developed solution. What useful life should be used?","es":""},"explanation":{"fr":"","en":"The useful life of an asset arising from contractual or legal rights does not exceed the period of those rights, but may be shorter depending on the period over which the entity expects to use the asset (IAS 38, para. 94). The contractual term of 6 years is a ceiling; the expected use of 4 years determines the useful life.","es":""},"common_error":{"fr":"","en":"Using the term of the rights (6 years) without considering expected use.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"6 years, the useful life of a contractual right always being equal to the term of that right.","es":""},"correct":false,"feedback":{"fr":"","en":"The 6-year contractual term is a ceiling, not an imposed life: useful life can be shorter depending on the period of expected use (IAS 38, para. 94). The entity plans to use the technology for 4 years before replacing it. Amortising over 6 years would spread the cost beyond the expected use. Rule to remember: a contractual right caps the useful life without setting it: expected use can shorten it (IAS 38, para. 94).","es":""}},{"id":"B","text":{"fr":"","en":"4 years, the expected period of use, shorter than that of the rights.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An indefinite life, as the technology could be replaced at any time.","es":""},"correct":false,"feedback":{"fr":"","en":"An indefinite life is ruled out: the contract is for 6 years and not renewable, which limits the term of the rights (IAS 38, para. 94), and the replacement planned in 4 years limits use further. The fact that a technology can be replaced does not remove these limits; here they are known. Rule to remember: non-renewable contractual rights do not allow an indefinite useful life (IAS 38, para. 94).","es":""}},{"id":"D","text":{"fr":"","en":"5 years, the average of the contractual term and the expected period of use.","es":""},"correct":false,"feedback":{"fr":"","en":"No average is calculated: useful life is the period of expected use when it is shorter than the term of the rights (IAS 38, para. 94). Here that is 4 years, not 5. Averaging 6 and 4 rests on no criterion in the standard and would misstate the annual charge. Rule to remember: useful life is the expected period of use when it is shorter than that of the rights, with no averaging (IAS 38, para. 94).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000334","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000334","tested_point":"QST.IAS38.000334","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"contractual-rights-rule"},"references":["IAS 38 §94"],"exercise":{"prompt":{"fr":"","en":"An entity acquires a right to operate a motorway catering concession for 5 years, renewable once for 5 years. Renewal is granted only on payment of a new entry fee close to the initial price. The entity expects to run the business for at least 10 years. What useful life should be used?","es":""},"explanation":{"fr":"","en":"The useful life of an asset arising from contractual rights does not exceed the period of those rights; renewal periods are included only if there is evidence to support renewal without significant cost (IAS 38, para. 94). A new entry fee close to the initial price is a significant cost: the useful life is limited to 5 years, despite the intention to operate for longer.","es":""},"common_error":{"fr":"","en":"Including a costly renewal period because of the intention to operate for longer.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"10 years, since the entity expects to run the business for that whole period.","es":""},"correct":false,"feedback":{"fr":"","en":"The intention to operate for 10 years is not enough: a renewal enters the life only if there is evidence of renewal without significant cost (IAS 38, para. 94). Here a new entry fee close to the initial price is a significant cost, equivalent in substance to buying a new asset (IAS 38, para. 96). Using 10 years would wrongly lengthen the amortisation period. Rule to remember: an intention to operate for longer is not enough: renewal enters the useful life only if it is supported and at no significant cost (IAS 38, para. 94).","es":""}},{"id":"B","text":{"fr":"","en":"5 years, as renewal requires a significant cost.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An indefinite life, as the concession can be renewed.","es":""},"correct":false,"feedback":{"fr":"","en":"A renewable concession does not therefore have an indefinite life: renewal depends on a new entry fee close to the initial price, hence costly (IAS 38, paras. 94 and 96). The rights have a finite contractual term of 5 years, which the entity uses as the useful life. Rule to remember: a costly renewal does not make the life indefinite: the finite contractual term remains the ceiling (IAS 38, paras. 94 and 96).","es":""}},{"id":"D","text":{"fr":"","en":"A life between 5 and 10 years, set by management according to the probability it assigns to renewal.","es":""},"correct":false,"feedback":{"fr":"","en":"The life is not set by management according to the probability it assigns to renewal: a renewal period is included or not according to the evidence and its cost (IAS 38, paras. 94 and 96). Here the cost close to the initial price is significant, the renewal period is excluded and the life is 5 years. Rule to remember: the life does not depend on the probability management assigns: a renewal is included on the basis of evidence and its cost (IAS 38, paras. 94 and 96).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000335","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS","IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000606","tested_point":"VG.IAS38.000606","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"contractual-rights-rule"},"references":["IAS 38 §94","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"Laboratoires Vireux acquire for {licence_cost} a licence to use a scientific database, granted for {contract_term} and renewable once for {renewal_term}. Renewal is automatic, for negligible administrative fees, and the entity has evidence showing that it will obtain it. It plans to use the database for {expected_use}. The licence is amortised on a straight-line basis, with no residual value. Determine the useful life and the annual amortisation charge.","es":""},"explanation":{"fr":"","en":"The renewal is supported by evidence and involves no significant cost: it is included in the period of the rights, which reaches 4 + 4 = 8 years (IAS 38, para. 94). The intended use of 10 years exceeds that period, which is a ceiling: the useful life is 8 years. The depreciable amount is allocated on a straight-line basis over that life (IAS 38, para. 97): 240,000 / 8 = 30,000 per year. Main trap: using the 10 years of intended use when the rights, including the supported renewal, end at 8 years, or ignoring that renewal at no significant cost. Rule to remember: useful life does not exceed the term of the rights, including supported renewals at no significant cost (IAS 38, para. 94); the depreciable amount is spread over that life (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Using the intended period of use of 10 years, beyond the period of the rights (24,000 per year).","es":""},"format":"CALCULATION","placeholders":[{"id":"licence_cost","value":"240000","unit":"EUR"},{"id":"contract_term","value":"4","unit":"YEARS"},{"id":"renewal_term","value":"4","unit":"YEARS"},{"id":"expected_use","value":"10","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the licence","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Initial contractual term","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Renewal term","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Intended period of use","es":""},"value":"10","unit":"YEARS"}],"steps":[{"id":"USEFUL_LIFE","label":{"fr":"","en":"Useful life (years)","es":""},"answer":8,"tolerance":0,"unit":"YEARS"},{"id":"ANNUAL_AMORTISATION","label":{"fr":"","en":"Annual amortisation charge","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_AMORTISATION","meaning":{"fr":"","en":"Annual amortisation charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the licence","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life (years)","es":""},"value":8,"unit":"YEARS"}],"result":30000,"unit":"EUR","rationale":{"fr":"","en":"The depreciable amount is allocated on a straight-line basis over that life (IAS 38, para. 97): 240,000 / 8 = 30,000 per year.","es":""}}],"rationale":{"fr":"","en":"useful life does not exceed the term of the rights, including supported renewals at no significant cost (IAS 38, para. 94); the depreciable amount is spread over that life (IAS 38, para. 97).","es":""},"references":["REF.IAS38.94","REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000336","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS","IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000606","tested_point":"VG.IAS38.000606","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"contractual-rights-rule"},"references":["IAS 38 §94","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"Studio Ondine acquires for {right_cost} the right to exploit a film catalogue commercially for {contract_term}. At expiry, the right can be extended, but only against payment of a new price negotiated on market terms. Studio Ondine expects to exploit the catalogue for {expected_use}. The right is amortised on a straight-line basis, with no residual value. What are the useful life of the right and its annual amortisation charge?","es":""},"explanation":{"fr":"","en":"Useful life does not exceed the period of the rights; an extension is taken into account only if it can be obtained without significant cost (IAS 38, para. 94). A new price negotiated on market terms is a significant cost: the extension is excluded and the useful life is capped at 10 years, although the intended exploitation is 12 years. Straight-line charge (IAS 38, para. 97): 350,000 / 10 = 35,000 per year. Main trap: confusing the possibility of extension with a renewal at no cost: a new market price is a significant cost, and the 12 years of intended operation do not extend the rights. Amortising over 12 years instead of 10 would wrongly reduce the annual charge. Rule to remember: an extension at a new market price is equivalent to acquiring a new asset and does not lengthen the useful life (IAS 38, paras. 94 and 96).","es":""},"common_error":{"fr":"","en":"Amortising over the intended exploitation period of 12 years.","es":""},"format":"CALCULATION","placeholders":[{"id":"right_cost","value":"350000","unit":"EUR"},{"id":"contract_term","value":"10","unit":"YEARS"},{"id":"expected_use","value":"12","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the exploitation right","es":""},"value":"350000","unit":"EUR"},{"label":{"fr":"","en":"Contractual term of the right","es":""},"value":"10","unit":"YEARS"},{"label":{"fr":"","en":"Intended period of exploitation","es":""},"value":"12","unit":"YEARS"}],"steps":[{"id":"USEFUL_LIFE","label":{"fr":"","en":"Useful life (years)","es":""},"answer":10,"tolerance":0,"unit":"YEARS"},{"id":"ANNUAL_AMORTISATION","label":{"fr":"","en":"Annual amortisation charge","es":""},"answer":35000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_AMORTISATION","meaning":{"fr":"","en":"Annual amortisation charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the exploitation right","es":""},"value":350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Contractual term of the right","es":""},"value":10,"unit":"YEARS"}],"result":35000,"unit":"EUR"}],"rationale":{"fr":"","en":"an extension at a new market price is equivalent to acquiring a new asset and does not lengthen the useful life (IAS 38, paras. 94 and 96).","es":""},"references":["REF.IAS38.94","REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000337","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS","IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000606","tested_point":"VG.IAS38.000606","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"contractual-rights-rule"},"references":["IAS 38 §94","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"Autocars Cévenols obtain for {authorisation_cost} an authorisation to operate a scheduled route, granted for {contract_term} and renewable twice, each renewal covering {renewal_term}. The authority has always renewed these authorisations, at a low administrative cost, for operators complying with their specifications, which the entity does. However, it plans to abandon the route after {expected_use}, when a rail link opens. The authorisation is amortised on a straight-line basis, with no residual value. Determine the useful life and the annual amortisation charge.","es":""},"explanation":{"fr":"","en":"The renewals are supported by the authority's practice and compliance with the specifications, and their cost is not significant: the period of the rights reaches 3 + 2 × 3 = 9 years (IAS 38, para. 94). The useful life may however be shorter depending on the expected period of use: abandoning the route limits it to 7 years. Straight-line charge (IAS 38, para. 97): 266,000 / 7 = 38,000 per year. Main trap: adding up all the rights periods (9 years) without considering the planned abandonment of the line, or ignoring supported renewals. The life used is the shorter of the term of the rights and expected use: 7 years. The difference in the charge affects profit. Rule to remember: useful life is limited by the term of the rights, supported renewals included, and by the period of expected use if shorter (IAS 38, para. 94).","es":""},"common_error":{"fr":"","en":"Amortising over the total period of the rights, including renewals, without considering the planned abandonment.","es":""},"format":"CALCULATION","placeholders":[{"id":"authorisation_cost","value":"266000","unit":"EUR"},{"id":"contract_term","value":"3","unit":"YEARS"},{"id":"renewal_term","value":"3","unit":"YEARS"},{"id":"expected_use","value":"7","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the authorisation","es":""},"value":"266000","unit":"EUR"},{"label":{"fr":"","en":"Initial term of the authorisation","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Term of each renewal","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Intended period of operation","es":""},"value":"7","unit":"YEARS"}],"steps":[{"id":"USEFUL_LIFE","label":{"fr":"","en":"Useful life (years)","es":""},"answer":7,"tolerance":0,"unit":"YEARS"},{"id":"ANNUAL_AMORTISATION","label":{"fr":"","en":"Annual amortisation charge","es":""},"answer":38000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_AMORTISATION","meaning":{"fr":"","en":"Annual amortisation charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the authorisation","es":""},"value":266000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Intended period of operation","es":""},"value":7,"unit":"YEARS"}],"result":38000,"unit":"EUR"}],"rationale":{"fr":"","en":"useful life is limited by the term of the rights, supported renewals included, and by the period of expected use if shorter (IAS 38, para. 94).","es":""},"references":["REF.IAS38.94","REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000338","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000338","tested_point":"QST.IAS38.000338","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"contractual-rights-rule"},"references":["IAS 38 §94"],"exercise":{"prompt":{"fr":"","en":"Boulangeries Ferrand acquire a franchise for 5 years. The contract provides for a possible renewal for 5 years, at the sole discretion of the franchisor, who last year refused to renew several franchisees in the region. Ferrand would like to operate the outlet for 10 years. What useful life should be used for the franchise?","es":""},"explanation":{"fr":"","en":"The useful life of an asset arising from contractual rights does not exceed the period of those rights; a renewal period is included only if there is evidence to support renewal without significant cost (IAS 38, para. 94). A discretionary renewal, which the franchisor has recently refused to other franchisees, is not supported: the useful life is 5 years.","es":""},"common_error":{"fr":"","en":"Equating a contractual option to renew with a supported renewal.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"10 years, in line with the entity's wish and the contractual possibility of renewal.","es":""},"correct":false,"feedback":{"fr":"","en":"The wish to operate for 10 years and a mere contractual option to renew are not supporting evidence: renewal is at the franchisor's discretion, and it refused several renewals last year (IAS 38, paras. 94 and 96). Using 10 years would amortise the right over a period the entity does not control. Rule to remember: a wish to operate for longer is not evidence of renewal (IAS 38, para. 94).","es":""}},{"id":"B","text":{"fr":"","en":"5 years, as there is no evidence that renewal will be obtained.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An indefinite life, since the contract provides for a possibility of renewal.","es":""},"correct":false,"feedback":{"fr":"","en":"A renewal possibility does not make the life indefinite: the franchise has a contractual term of 5 years, and an unsupported renewal does not add to that term (IAS 38, para. 94). A mere option left to a third party does not provide the evidence required. Rule to remember: a mere renewal option left to a third party does not make the life indefinite (IAS 38, para. 94).","es":""}},{"id":"D","text":{"fr":"","en":"None: the franchise is not amortised until the franchisor has decided on renewal.","es":""},"correct":false,"feedback":{"fr":"","en":"Amortisation does not wait for the franchisor's decision: the franchise is usable for 5 years and is amortised over that period (IAS 38, paras. 94 and 97). Deferring amortisation until the decision would fail to recognise a consumption of benefits already under way. Rule to remember: amortisation of an asset with a finite life starts when it is available, without waiting for a renewal decision (IAS 38, para. 97).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000340","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000340","tested_point":"QST.IAS38.000340","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"True or false? Amortisation of an intangible asset with a finite useful life begins as soon as it is available for use, even if the entity only actually uses it later.","es":""},"explanation":{"fr":"","en":"True. Amortisation begins when the asset is available for use (IAS 38, para. 97). The date on which the entity actually starts using it is irrelevant: a delay in putting the asset into service does not defer the start of amortisation. Main trap: believing amortisation waits for first actual use. Example: a licence available in January but used from April is amortised from January. Rule to remember: amortisation starts when the asset is available for use (location and condition intended by management), not at first use (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Starting amortisation at the asset's first actual use.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000341","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000341","tested_point":"QST.IAS38.000341","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"True or false? Amortisation of a software licence begins when the purchase contract is signed, even if several months of installation are still needed before the software can operate.","es":""},"explanation":{"fr":"","en":"False. Amortisation begins when the asset is available for use (IAS 38, para. 97). As long as installation is not complete and the software cannot operate, it is not available for use: signing the contract does not trigger amortisation. Main trap: confusing the date of contractual commitment with availability: while installation is incomplete, the asset is not in the condition intended by management. Example: a licence signed in January and operational in May is amortised from May. Rule to remember: amortisation does not start at contract signature but when the asset is available for use (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Amortising from the signature of the purchase contract.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000342","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000342","tested_point":"QST.IAS38.000342","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"True or false? Amortisation of an intangible asset with a finite useful life ceases at the earlier of the following two dates: the date it is classified as held for sale under IFRS 5 and the date it is derecognised.","es":""},"explanation":{"fr":"","en":"True. Amortisation begins on the date the asset is available for use and ceases at the earlier of the date the asset is classified as held for sale under IFRS 5 and the date it is derecognised (IAS 38, para. 97). Main trap: using the derecognition date when an earlier classification as held for sale (IFRS 5) has already stopped amortisation. Example: classified in March, sold in September: amortisation stops in March. Rule to remember: amortisation ceases at the earlier of the two dates: classification as held for sale or derecognition (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Continuing amortisation until derecognition despite an earlier IFRS 5 classification.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000343","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000343","tested_point":"QST.IAS38.000343","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"True or false? An entity that capitalises development expenditure must amortise the asset under development from the first amount capitalised, without waiting for the project to be completed.","es":""},"explanation":{"fr":"","en":"False. Amortisation begins when the asset is available for use (IAS 38, para. 97). A development project still in progress is not available for use: the capitalised expenditure accumulates without being amortised until the completed asset can be used. Main trap: confusing the start of capitalising costs with the start of amortisation. An unfinished project is not available for use: capitalised expenditure builds up in the asset without a charge. Rule to remember: an asset under development is not amortised until it is available for use (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Amortising a development project from the first capitalised expenditure.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000344","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000344","tested_point":"QST.IAS38.000344","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"From what date does an intangible asset with a finite useful life start to be amortised?","es":""},"explanation":{"fr":"","en":"Amortisation begins when the asset is available for use (IAS 38, para. 97), regardless of when it is actually put into service, when it first generates revenue or how financial years are divided. Main trap: confusing availability, start-up and first revenues.","es":""},"common_error":{"fr":"","en":"Starting amortisation at actual start-up rather than at availability.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"From the date it is actually put into service by the operational teams.","es":""},"correct":false,"feedback":{"fr":"","en":"Actual start-up by the teams may come after availability: what matters is the date the asset is in the location and condition intended by management (IAS 38, para. 97). Example: a patent ready in January but exploited from June is amortised from January. Rule to remember: availability for use, not actual commissioning, sets the start of amortisation (IAS 38, para. 97).","es":""}},{"id":"B","text":{"fr":"","en":"From the date it is available for use.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"From the date it generates its first revenue.","es":""},"correct":false,"feedback":{"fr":"","en":"First revenues do not trigger amortisation: it spreads the cost over the useful life as soon as the asset is available, whether it has generated revenue yet or not (IAS 38, para. 97). Waiting for first revenues would delay the charge and inflate profit in the first months. Rule to remember: amortisation does not depend on the asset's first revenue but on its availability (IAS 38, para. 97).","es":""}},{"id":"D","text":{"fr":"","en":"From the first day of the financial year following its acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"The start of amortisation does not follow the split into reporting periods: it begins as soon as the asset is available for use (IAS 38, para. 97). Deferring to the first day of the next year would omit the charge for the period between availability and the year-end. Rule to remember: the split into reporting periods does not defer amortisation, which starts as soon as the asset is available (IAS 38, para. 97).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000345","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000345","tested_point":"QST.IAS38.000345","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"Transports Lemerle buy planning software on 1 February 20X1. Installation and configuration are completed on 1 March 20X1: the software is then available for the use intended by management. After user training, it is used from 1 May 20X1. From what date is the software amortised?","es":""},"explanation":{"fr":"","en":"Amortisation begins when the asset is available for use (IAS 38, para. 97). The software is available at the end of installation and configuration, on 1 March 20X1. The purchase date precedes that availability; first use, after training, comes later and does not defer amortisation.","es":""},"common_error":{"fr":"","en":"Amortising from the software's purchase date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"1 February 20X1, the date the software was purchased.","es":""},"correct":false,"feedback":{"fr":"","en":"On the purchase date, 1 February, the software is not yet installed or configured: it is not in the condition intended by management (IAS 38, para. 97). Amortising from purchase would add a month of charge before availability on 1 March. Rule to remember: purchase does not trigger amortisation: the asset must be available, in the condition intended by management (IAS 38, para. 97).","es":""}},{"id":"B","text":{"fr":"","en":"1 March 20X1, the availability date.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"1 May 20X1, the date of its first actual use by the teams.","es":""},"correct":false,"feedback":{"fr":"","en":"1 May is the first use, after user training, whereas the software is available from 1 March (IAS 38, para. 97). Amortising from 1 May would drop two months of charge (March and April) although the asset is already ready. Rule to remember: a later first use does not defer amortisation of an asset that is already available (IAS 38, para. 97).","es":""}},{"id":"D","text":{"fr":"","en":"1 January 20X2, the first day of the following financial year.","es":""},"correct":false,"feedback":{"fr":"","en":"1 January 20X2 is the first day of the next year: amortisation follows availability, not the split into reporting periods (IAS 38, para. 97). Waiting for that date would omit the charges from March to December 20X1 and understate the year's expense. Rule to remember: the start of amortisation follows the availability of the asset, not the first day of the next period (IAS 38, para. 97).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000346","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000346","tested_point":"QST.IAS38.000346","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"An entity amortises a licence with a finite useful life on a straight-line basis. On 30 September 20X2, the licence is classified as held for sale under IFRS 5; it is sold and derecognised on 31 January 20X3. Until what date is it amortised?","es":""},"explanation":{"fr":"","en":"Amortisation ceases at the earlier of the date the asset is classified as held for sale under IFRS 5 and the date it is derecognised (IAS 38, para. 97). The classification on 30 September 20X2 precedes derecognition: amortisation stops on that date.","es":""},"common_error":{"fr":"","en":"Continuing amortisation until derecognition after an IFRS 5 classification.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Until 31 January 20X3, the date it is derecognised.","es":""},"correct":false,"feedback":{"fr":"","en":"Derecognition on 31 January 20X3 comes after the classification on 30 September 20X2: amortisation ceases at the earlier of the two dates (IAS 38, para. 97). Continuing until 31 January would wrongly recognise four months of charge. Rule to remember: amortisation stops at the earlier of the two dates, IFRS 5 classification or derecognition, not the later (IAS 38, para. 97).","es":""}},{"id":"B","text":{"fr":"","en":"Until 30 September 20X2, the date of classification under IFRS 5.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Until 31 December 20X2, the end of the financial year in which the classification takes place.","es":""},"correct":false,"feedback":{"fr":"","en":"The year-end is not a stopping date: amortisation ceases at the IFRS 5 classification, here 30 September 20X2 (IAS 38, para. 97). Going to 31 December would add three months of charge after the classification. Rule to remember: amortisation stops at IFRS 5 classification or derecognition, not at the reporting date (IAS 38, para. 97).","es":""}},{"id":"D","text":{"fr":"","en":"Until the end of its initial useful life, as the sale has no effect on amortisation.","es":""},"correct":false,"feedback":{"fr":"","en":"The sale does affect amortisation: it ceases at classification as held for sale or at derecognition, whichever comes first (IAS 38, para. 97). It therefore stops before the end of the original useful life. Rule to remember: a planned disposal stops amortisation as soon as the asset is classified as held for sale (IAS 38, para. 97).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000347","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000607","tested_point":"VG.IAS38.000607","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"Cabinet Ravenne acquires on 1 March 20X1 a document management software licence for {licence_cost}, amortised on a straight-line basis over {useful_life}, with no residual value. The software has to be integrated into the firm's information system: the work is completed on 1 September 20X1, the date on which it is available for use. The teams only use it from 1 November 20X1. Calculate the amortisation charge for the year ended 31 December 20X1.","es":""},"explanation":{"fr":"","en":"Amortisation begins when the asset is available for use, here 1 September 20X1 (IAS 38, para. 97), not at acquisition or first use. Annual charge: 180,000 / 5 = 36,000; pro rata for 4 months (September to December): 36,000 × 4/12 = 12,000. Main trap: confusing purchase, availability and first use; the first-year proration runs from availability to the year-end, here 1 September to 31 December. Rule to remember: the first-year proration runs from the date of availability for use to the year-end (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Amortising from the acquisition date of 1 March (30,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"licence_cost","value":"180000","unit":"EUR"},{"id":"useful_life","value":"5","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the licence","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"5","unit":"YEARS"}],"steps":[{"id":"AMORTISATION_20X1","label":{"fr":"","en":"Amortisation charge for 20X1","es":""},"answer":12000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"AMORTISATION_20X1","meaning":{"fr":"","en":"Amortisation charge for 20X1","es":""},"expression":"(a / b) * 4 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the licence","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":5,"unit":"YEARS"}],"result":12000,"unit":"EUR"}],"rationale":{"fr":"","en":"the first-year proration runs from the date of availability for use to the year-end (IAS 38, para. 97).","es":""},"references":["REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000348","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000607","tested_point":"VG.IAS38.000607","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"Assurances Pérignac complete on 1 October 20X2 the development of a claims management application, whose capitalised cost amounts to {capitalised_cost}. On that date, the application is available for use; however, it will only be rolled out to claims handlers on 1 January 20X3. The application is amortised on a straight-line basis over {useful_life}, with no residual value. What is the amortisation charge for the year ended 31 December 20X2?","es":""},"explanation":{"fr":"","en":"Amortisation begins when the asset is available for use (IAS 38, para. 97), i.e. 1 October 20X2: postponing the roll-out to 1 January 20X3 does not shift its starting point. Annual charge: 96,000 / 4 = 24,000; pro rata for 3 months: 24,000 × 3/12 = 6,000. Main trap: believing the deployment deferred to 1 January 20X3 postpones amortisation, or conversely recognising a full year when the application has been available for three months. Rule to remember: a deferred deployment does not delay the amortisation of an asset already available for use (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Amortising nothing in 20X2 because the application is only rolled out in 20X3.","es":""},"format":"CALCULATION","placeholders":[{"id":"capitalised_cost","value":"96000","unit":"EUR"},{"id":"useful_life","value":"4","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Capitalised cost of the application","es":""},"value":"96000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"4","unit":"YEARS"}],"steps":[{"id":"AMORTISATION_20X2","label":{"fr":"","en":"Amortisation charge for 20X2","es":""},"answer":6000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"AMORTISATION_20X2","meaning":{"fr":"","en":"Amortisation charge for 20X2","es":""},"expression":"(a / b) * 3 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Capitalised cost of the application","es":""},"value":96000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":4,"unit":"YEARS"}],"result":6000,"unit":"EUR"}],"rationale":{"fr":"","en":"a deferred deployment does not delay the amortisation of an asset already available for use (IAS 38, para. 97).","es":""},"references":["REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000349","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000607","tested_point":"VG.IAS38.000607","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"Verreries Lunel, whose financial year ends on 31 March, acquire a process patent on 1 August 20X1 for {patent_cost}. The patent is available for use as soon as it is acquired, but the entity only starts exploiting it on 1 February 20X2, for lack of orders. It is amortised on a straight-line basis over {useful_life}, with no residual value. Calculate the amortisation charge for the year ended 31 March 20X2.","es":""},"explanation":{"fr":"","en":"Amortisation begins on the date the asset is available for use, 1 August 20X1 (IAS 38, para. 97), not when exploitation starts. The financial year runs from 1 April 20X1 to 31 March 20X2: the patent is amortised for 8 months (August to March). Annual charge: 150,000 / 5 = 30,000; charge for the year: 30,000 × 8/12 = 20,000. Main trap: counting months from the start of operations rather than from availability, or reasoning on a calendar year when the year-end is 31 March. Rule to remember: the proration months run from availability for use to the entity's own year-end, here 31 March (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Amortising from 1 February 20X2, when exploitation starts (5,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"patent_cost","value":"150000","unit":"EUR"},{"id":"useful_life","value":"5","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the patent","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"5","unit":"YEARS"}],"steps":[{"id":"AMORTISATION_FOR_THE_YEAR","label":{"fr":"","en":"Charge for the year ended 31 March 20X2","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"AMORTISATION_FOR_THE_YEAR","meaning":{"fr":"","en":"Charge for the year ended 31 March 20X2","es":""},"expression":"(a / b) * 8 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the patent","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":5,"unit":"YEARS"}],"result":20000,"unit":"EUR"}],"rationale":{"fr":"","en":"the proration months run from availability for use to the entity's own year-end, here 31 March (IAS 38, para. 97).","es":""},"references":["REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000350","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.START"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000350","tested_point":"QST.IAS38.000350","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"Éditions Morlaix amortise on a straight-line basis, over {useful_life} and with no residual value, a distribution licence acquired for {licence_cost} and available for use for several years. On 31 May 20X3, the licence is classified as held for sale under IFRS 5; it is sold and derecognised on 31 October 20X3. Calculate the amortisation charge for the year ended 31 December 20X3.","es":""},"explanation":{"fr":"","en":"Amortisation ceases at the earlier of classification under IFRS 5 and derecognition (IAS 38, para. 97), i.e. 31 May 20X3. Annual charge: 288,000 / 8 = 36,000; amortisation from January to May, i.e. 5 months: 36,000 × 5/12 = 15,000. Main trap: continuing amortisation until the October derecognition when the IFRS 5 classification stops it in May. Rule to remember: amortisation ceases at the IFRS 5 classification or at derecognition, whichever comes first (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Amortising until derecognition on 31 October (30,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"licence_cost","value":"288000","unit":"EUR"},{"id":"useful_life","value":"8","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the licence","es":""},"value":"288000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"8","unit":"YEARS"}],"steps":[{"id":"AMORTISATION_20X3","label":{"fr":"","en":"Amortisation charge for 20X3","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"AMORTISATION_20X3","meaning":{"fr":"","en":"Amortisation charge for 20X3","es":""},"expression":"(a / b) * 5 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the licence","es":""},"value":288000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":8,"unit":"YEARS"}],"result":15000,"unit":"EUR"}],"rationale":{"fr":"","en":"amortisation ceases at the IFRS 5 classification or at derecognition, whichever comes first (IAS 38, para. 97).","es":""},"references":["REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000351","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.METHOD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000351","tested_point":"QST.IAS38.000351","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"True or false? A firm of architects acquires a modelling software licence for 120,000, usable for 4 years. The pattern in which the benefits are consumed cannot be determined reliably and no residual value is assumed. The annual amortisation charge is 30,000.","es":""},"explanation":{"fr":"","en":"True. As the pattern of consumption of the benefits cannot be determined reliably, the entity uses the straight-line method and allocates the depreciable amount over the useful life (IAS 38, para. 97): 120,000 / 4 = 30,000 per year. Main trap: hesitating over the method when the pattern of consumption cannot be determined reliably: straight-line applies, with no residual value here. Rule to remember: where the pattern of consumption cannot be determined reliably, straight-line spreads the depreciable amount over the useful life (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Looking for another method when the pattern of consumption cannot be determined reliably.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000352","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.METHOD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000352","tested_point":"QST.IAS38.000352","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §98","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"True or false? IAS 38 requires the straight-line method for all intangible assets with a finite useful life, whatever the pattern in which their benefits are consumed.","es":""},"explanation":{"fr":"","en":"False. Several methods can allocate the depreciable amount on a systematic basis, including the straight-line method, the diminishing balance method and the units of production method; the entity selects the one that reflects the expected pattern of consumption of the benefits (IAS 38, para. 98). The straight-line method is required only if that pattern cannot be determined reliably (IAS 38, para. 97). Main trap: believing straight-line is imposed on every asset, when it is the fallback where no reliable pattern exists. Example: a licence consumed by simulation hours follows units of production. Rule to remember: the amortisation method follows the expected pattern of consumption of benefits (IAS 38, para. 98); straight-line is used where no reliable pattern exists (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Treating straight-line as mandatory for all intangible assets.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000353","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.METHOD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000353","tested_point":"QST.IAS38.000353","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §98"],"exercise":{"prompt":{"fr":"","en":"The management accountant of a logistics company must select the amortisation method for separately acquired warehouse management software. Which criterion should guide that choice?","es":""},"explanation":{"fr":"","en":"The amortisation method is selected on the basis of the expected pattern of consumption of the asset's future economic benefits; it may be straight-line, diminishing balance or based on units of production (IAS 38, para. 98). Tax considerations, profit smoothing or a third party's practices are not relevant criteria.","es":""},"common_error":{"fr":"","en":"Adopting the tax method as the accounting method.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The method used by the tax authorities to determine the company's taxable profit.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax method serves to determine tax, not the consumption of the software's benefits. In the accounts, the method is chosen according to the expected pattern of consumption of future economic benefits (IAS 38, para. 98). Adopting the tax method can produce a charge unrelated to actual use. Rule to remember: tax rules determine the tax charge, not the accounting method, which follows the consumption of benefits (IAS 38, para. 98).","es":""}},{"id":"B","text":{"fr":"","en":"The method that best smooths profit from one period to the next, to make financial communication easier.","es":""},"correct":false,"feedback":{"fr":"","en":"Smoothing profit is not an objective of the amortisation method: a charge chosen to dampen fluctuations does not reflect the consumption of benefits (IAS 38, para. 98). If warehouse usage fluctuates, the charge should follow that consumption, not a desired presentation. Rule to remember: the method is not chosen to smooth profit but according to the pattern of consumption of benefits (IAS 38, para. 98).","es":""}},{"id":"C","text":{"fr":"","en":"The expected pattern of consumption of the software's future economic benefits.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The method used by the software vendor in its own accounts for comparable assets.","es":""},"correct":false,"feedback":{"fr":"","en":"A publisher's method for its own assets reflects its consumption of benefits, not that of the software at the entity that uses it: the method is chosen according to the pattern of consumption expected by the latter (IAS 38, para. 98). Copying the publisher is therefore not a criterion. Rule to remember: the method is chosen from the entity's own consumption of benefits, not a third party's (IAS 38, para. 98).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000354","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.METHOD","IAS38.AMORTISATION.START"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000354","tested_point":"QST.IAS38.000354","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §97","IAS 38 §98"],"exercise":{"prompt":{"fr":"","en":"A biotechnology company is drafting its amortisation policy for intangible assets with a finite useful life. Which of the following statements comply with IAS 38?","es":""},"explanation":{"fr":"","en":"Amortisation spreads the cost less the residual value methodically over the expected period of use; it begins when the asset is available for use, not on the first collection, and ceases on classification under IFRS 5 or on derecognition (IAS 38, para. 97). The method reflects the pattern of consumption of the benefits, and the units of production method is one of the possible methods (IAS 38, para. 98): a single method imposed on assets consumed differently does not comply.","es":""},"common_error":{"fr":"","en":"Triggering amortisation at the first receipt.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Amortisation begins only when the first revenue generated through the asset is collected.","es":""},"correct":false,"feedback":{"fr":"","en":"Amortisation does not depend on first receipts: it starts as soon as the asset is available for use (IAS 38, para. 97). Waiting for revenue generated would delay the charge relative to the consumption of benefits. Example: a patent ready in March but earning from October is amortised from March. Rule to remember: amortisation starts at availability, ceases at IFRS 5 classification or derecognition, and its method follows the pattern of consumption (IAS 38, paras. 97 and 98).","es":""}},{"id":"B","text":{"fr":"","en":"The cost of the asset, less its residual value, is spread methodically as an expense over the whole period during which the entity expects to use it.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Once chosen, the straight-line method applies to all classes of assets, even if their benefits are consumed in different patterns.","es":""},"correct":false,"feedback":{"fr":"","en":"A single method for every class does not fit if benefits are consumed at different rates: the method follows the expected pattern of each asset (IAS 38, para. 98). Straight-line is used where no reliable pattern exists (IAS 38, para. 97). Example: a licence limited by hours of use follows units of production. Rule to remember: amortisation starts at availability, ceases at IFRS 5 classification or derecognition, and its method follows the pattern of consumption (IAS 38, paras. 97 and 98).","es":""}},{"id":"D","text":{"fr":"","en":"The units of production method is an acceptable method when it reflects the pattern of consumption of the benefits.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Amortisation ceases at the date the asset is classified as held for sale under IFRS 5, or at its derecognition if earlier.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000355","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000701","tested_point":"VG.IAS38.000701","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §98","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"A flight school acquires a flight simulation software licence for {licence_cost}. The contract allows at most {total_hours} hours of simulation, and the school expects to use them all. The licence's benefits are therefore consumed as simulation hours are used. During the first year, students completed {year_hours} hours. No residual value is expected. What is the amortisation charge for the first year?","es":""},"explanation":{"fr":"","en":"The method selected must reflect the pattern of consumption of the benefits; the units of production method is one such method (IAS 38, para. 98). The depreciable amount of 360,000 is allocated on the basis of hours: 360,000 × 2,700 / 12,000 = 81,000 (IAS 38, para. 97). Main trap: inverting the ratio (total hours over hours in the year) or amortising straight-line when the licence is consumed at the rate of simulation hours. Rule to remember: under the units of production method, the charge is the depreciable amount multiplied by the fraction of units consumed in the year (IAS 38, paras. 97 and 98).","es":""},"common_error":{"fr":"","en":"Applying straight-line amortisation unrelated to actual use.","es":""},"format":"CALCULATION","placeholders":[{"id":"licence_cost","value":"360000","unit":"EUR"},{"id":"total_hours","value":"12000","unit":"UNITS"},{"id":"year_hours","value":"2700","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Cost of the licence","es":""},"value":"360000","unit":"EUR"},{"label":{"fr":"","en":"Simulation hours allowed","es":""},"value":"12000","unit":"UNITS"},{"label":{"fr":"","en":"Hours completed during the year","es":""},"value":"2700","unit":"UNITS"}],"steps":[{"id":"AMORTISATION_CHARGE","label":{"fr":"","en":"Amortisation charge for the year","es":""},"answer":81000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"AMORTISATION_CHARGE","meaning":{"fr":"","en":"Amortisation charge for the year","es":""},"expression":"a * b / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the licence","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Hours completed during the year","es":""},"value":2700,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Simulation hours allowed","es":""},"value":12000,"unit":"UNITS"}],"result":81000,"unit":"EUR","rationale":{"fr":"","en":"The depreciable amount of 360,000 is allocated on the basis of hours: 360,000 × 2,700 / 12,000 = 81,000 (IAS 38, para. 97).","es":""}}],"rationale":{"fr":"","en":"under the units of production method, the charge is the depreciable amount multiplied by the fraction of units consumed in the year (IAS 38, paras. 97 and 98).","es":""},"references":["REF.IAS38.98","REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000356","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000701","tested_point":"VG.IAS38.000701","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §98","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"An agricultural engineering firm acquires, for {licence_cost}, a right of access to a satellite image bank, limited to {download_cap} image downloads over a contractual period of {contract_term} years. The download cap will be reached well before the contract expires: it is the cap that determines the consumption of the benefits. During the year, {downloads_year} images were downloaded. No residual value is expected. What is the amortisation charge for the year?","es":""},"explanation":{"fr":"","en":"The download cap, not the contract term, determines the consumption of the benefits: the units of production method reflects that pattern (IAS 38, para. 98). Charge: 150,000 × 1,200 / 5,000 = 36,000 (IAS 38, para. 97). The contractual term of 6 years is not the right basis: straight-line amortisation would give 25,000. Main trap: relying on the 6-year contract term when the download cap, reached well before, determines consumption; straight-line would give 25,000, less than the year's actual consumption. Rule to remember: when a cap on units limits use before expiry, that cap, rather than the contract term, is the basis for amortisation (IAS 38, paras. 98 and 98B).","es":""},"common_error":{"fr":"","en":"Amortising on a straight-line basis over the contractual term (25,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"licence_cost","value":"150000","unit":"EUR"},{"id":"download_cap","value":"5000","unit":"UNITS"},{"id":"downloads_year","value":"1200","unit":"UNITS"},{"id":"contract_term","value":"6","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the access right","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Download cap","es":""},"value":"5000","unit":"UNITS"},{"label":{"fr":"","en":"Downloads during the year","es":""},"value":"1200","unit":"UNITS"},{"label":{"fr":"","en":"Contractual term","es":""},"value":"6","unit":"YEARS"}],"steps":[{"id":"AMORTISATION_CHARGE","label":{"fr":"","en":"Amortisation charge for the year","es":""},"answer":36000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"AMORTISATION_CHARGE","meaning":{"fr":"","en":"Amortisation charge for the year","es":""},"expression":"a * b / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the access right","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Downloads during the year","es":""},"value":1200,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Download cap","es":""},"value":5000,"unit":"UNITS"}],"result":36000,"unit":"EUR"}],"rationale":{"fr":"","en":"when a cap on units limits use before expiry, that cap, rather than the contract term, is the basis for amortisation (IAS 38, paras. 98 and 98B).","es":""},"references":["REF.IAS38.98","REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000359","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.METHOD","IAS38.AMORTISATION.RESIDUAL_VALUE"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000359","tested_point":"QST.IAS38.000359","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §97","IAS 38 §100"],"exercise":{"prompt":{"fr":"","en":"Lumivert acquires a licence to operate a lighting process for 900,000 and will use it for 6 years. A competitor has contractually committed to buy the licence back for 180,000 at the end of those 6 years. The benefits are consumed evenly and the straight-line method is used. The intern calculates an annual charge of 150,000. What is the correct annual charge?","es":""},"explanation":{"fr":"","en":"The residual value is presumed to be zero, unless (a) a third party has committed to purchase the asset at the end of its useful life, or (b) there is an active market for the asset, provided both that the residual value can be determined by reference to that market and that the market will probably still exist at the end of the useful life (IAS 38, para. 100). Here, the competitor's contractual commitment falls under case (a) and justifies a residual value of 180,000. The depreciable amount, 900,000 − 180,000 = 720,000, is allocated on a straight-line basis over the useful life (IAS 38, para. 97): 720,000 / 6 = 120,000 per year. The intern's calculation fails to deduct the residual value.","es":""},"common_error":{"fr":"","en":"Spreading the full cost without deducting the residual value guaranteed by the third party's commitment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"150,000, that is the cost of 900,000 spread over 6 years, the residual value being dealt with at disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"Calculating 150,000 spreads the full cost of 900,000 over 6 years: the residual value of 180,000, backed by the competitor's firm commitment, must first be deducted (IAS 38, para. 100). The depreciable amount is 720,000. Leaving its treatment until disposal would overload each year's charge by 30,000. Rule to remember: a residual value supported by a third party's commitment is deducted from cost before spreading the depreciable amount (IAS 38, paras. 100 and 101).","es":""}},{"id":"B","text":{"fr":"","en":"120,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"180,000, because the agreed buy-back price must be amortised first, in the first year of use.","es":""},"correct":false,"feedback":{"fr":"","en":"The buy-back price of 180,000 is not an amount to amortise in the first year: it is the residual value, deducted from cost to obtain the depreciable amount (IAS 38, paras. 100 and 101). It reduces the basis of calculation, and the annual charge becomes 120,000. Rule to remember: a residual value supported by a third party's commitment is deducted from cost before spreading the depreciable amount (IAS 38, paras. 100 and 101).","es":""}},{"id":"D","text":{"fr":"","en":"90,000, that is a depreciable amount of 540,000 obtained by deducting the buy-back price twice, spread over 6 years.","es":""},"correct":false,"feedback":{"fr":"","en":"Residual value is deducted once from cost: 900,000 − 180,000 = 720,000 (IAS 38, paras. 100 and 101). Deducting it twice would wrongly shrink the base. The correct charge is 720,000 / 6 = 120,000 a year. Rule to remember: a residual value supported by a third party's commitment is deducted from cost before spreading the depreciable amount (IAS 38, paras. 100 and 101).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000360","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVENUE_BASED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000360","tested_point":"QST.IAS38.000360","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"revenue-based"},"references":["IAS 38 §98A","IAS 38 §98C"],"exercise":{"prompt":{"fr":"","en":"A board game publisher proposes to amortise the licence for a comic-strip character in proportion to the revenue earned from the games that use it, its sales forecasts being considered reliable. How should this proposal be assessed?","es":""},"explanation":{"fr":"","en":"There is a rebuttable presumption that an amortisation method based on the revenue generated by an activity that includes the use of the asset is inappropriate (IAS 38, para. 98A). The same paragraph limits rebuttal to two cases: the asset is expressed as a measure of revenue (a situation developed in para. 98C), or it is demonstrated that revenue and the consumption of the benefits are highly correlated (IAS 38, para. 98A). Reliable forecasts are not enough.","es":""},"common_error":{"fr":"","en":"Accepting amortisation in proportion to revenue because forecasts are reliable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is acceptable as long as the revenue forecasts are reliable and documented.","es":""},"correct":false,"feedback":{"fr":"","en":"Reliable revenue forecasts do not rebut the presumption: it must be shown that the right is expressed as a measure of revenue, or that revenue and consumption of benefits are closely correlated (IAS 38, para. 98A). Sales depend on factors with no direct link to the consumption of the licence, such as prices or commercial activity. Rule to remember: revenue-based amortisation is presumed inappropriate; the presumption is rebuttable in limited cases (IAS 38, para. 98A).","es":""}},{"id":"B","text":{"fr":"","en":"A revenue-based method is presumed inappropriate; the presumption is rebutted only in the limited cases set out in the standard.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is prohibited without exception, whatever the characteristics of the licence.","es":""},"correct":false,"feedback":{"fr":"","en":"The presumption is rebuttable, not absolute: in limited cases the asset is expressed as a measure of revenue or revenue and consumption of benefits are closely correlated (IAS 38, para. 98A). Saying it is prohibited without exception hardens the standard beyond its text. Rule to remember: revenue-based amortisation is presumed inappropriate; the presumption is rebuttable in limited cases (IAS 38, para. 98A).","es":""}},{"id":"D","text":{"fr":"","en":"It is mandatory, because it best matches expenses with the revenue of each period.","es":""},"correct":false,"feedback":{"fr":"","en":"A revenue-based method is not mandatory: it is presumed inappropriate, because revenue reflects factors with no direct link to the consumption of benefits (IAS 38, para. 98A). Matching expenses with revenue is not the selection criterion, which is the expected pattern of consumption (IAS 38, para. 98). Rule to remember: revenue-based amortisation is presumed inappropriate; the presumption is rebuttable in limited cases (IAS 38, para. 98A).","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000361","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVENUE_BASED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000361","tested_point":"QST.IAS38.000361","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"revenue-based"},"references":["IAS 38 §98C","IAS 38 §98B","IAS 38 §98A"],"exercise":{"prompt":{"fr":"","en":"In which of the following situations can an entity rebut the presumption that revenue-based amortisation is inappropriate?","es":""},"explanation":{"fr":"","en":"The presumption can be rebutted in two cases only: the asset is expressed as a measure of revenue, or it is demonstrated that revenue and the consumption of the benefits are highly correlated (IAS 38, para. 98A). A right that expires once a cumulative sales threshold is reached has that revenue threshold as its predominant limiting factor (IAS 38, para. 98B): it is expressed as a measure of revenue, and the revenue to be generated may then be an appropriate basis for amortisation (IAS 38, para. 98C). Precise forecasts, industry practice or a margin objective are not enough.","es":""},"common_error":{"fr":"","en":"Rebutting the presumption on the ground that revenue forecasts are accurate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The revenue generated by the asset can be forecast with great precision over its whole useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"High forecast accuracy shows neither that the right is expressed in revenue nor a close correlation with the consumption of benefits (IAS 38, para. 98A). Predictable revenue is still driven by prices, volumes and commercial activity, with no direct link to consumption. Rule to remember: the presumption is rebutted if the asset is expressed as a measure of revenue (cumulative revenue threshold) or if a close correlation is shown (IAS 38, paras. 98A, 98B and 98C).","es":""}},{"id":"B","text":{"fr":"","en":"The entity's main competitors amortise similar assets on the basis of the revenue they generate.","es":""},"correct":false,"feedback":{"fr":"","en":"Aligning with competitors' practice is not one of the grounds for rebuttal: the presumption falls if the right is expressed as a measure of revenue, or if a close correlation is shown (IAS 38, para. 98A). Other entities' accounting choices do not prove the consumption of this asset's benefits. Rule to remember: the presumption is rebutted if the asset is expressed as a measure of revenue (cumulative revenue threshold) or if a close correlation is shown (IAS 38, paras. 98A, 98B and 98C).","es":""}},{"id":"C","text":{"fr":"","en":"Management wants the amortisation charge to move in line with revenue, in order to stabilise the margin.","es":""},"correct":false,"feedback":{"fr":"","en":"Wanting the charge to move with revenue in order to stabilise the margin is a presentation objective, not a demonstration of consumption of benefits (IAS 38, para. 98A). The method must reflect the pattern of consumption, not a desired result. Rule to remember: the presumption is rebutted if the asset is expressed as a measure of revenue (cumulative revenue threshold) or if a close correlation is shown (IAS 38, paras. 98A, 98B and 98C).","es":""}},{"id":"D","text":{"fr":"","en":"The acquired right ends as soon as the cumulative sales made through it reach an amount set in the contract.","es":""},"correct":true}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000362","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVENUE_BASED","IAS38.AMORTISATION.REVIEW"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000362","tested_point":"QST.IAS38.000362","difficulty":"EXPERT","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"revenue-based"},"references":["IAS 38 §98A","IAS 38 §98B","IAS 38 §98C","IAS 38 §104"],"exercise":{"prompt":{"fr":"","en":"The audit committee of a media group is reviewing the revenue-based amortisation used for certain acquired rights. Which of the following statements are correct?","es":""},"explanation":{"fr":"","en":"The presumption runs against the revenue-based method, which is presumed inappropriate; it is rebutted only if the asset is expressed as a measure of revenue or if it is demonstrated that revenue and consumption are highly correlated (IAS 38, para. 98A). The predominant limiting factor inherent in the asset is the starting point for choosing the method (IAS 38, para. 98B): when it is a revenue threshold, the revenue to be generated may be an appropriate basis (IAS 38, para. 98C). Like any method, it is reviewed at least at each year-end, changes being changes in estimate (IAS 38, para. 104).","es":""},"common_error":{"fr":"","en":"Treating the revenue-based method as appropriate by default.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A revenue-based method is appropriate in principle, unless the entity demonstrates that it distorts the charge.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the other way round: a revenue-based method is presumed inappropriate, and the entity must show one of the grounds for rebuttal (IAS 38, para. 98A). Revenue reflects factors such as prices and volumes, with no direct link to the consumption of benefits. An audit committee should therefore not accept this method as a matter of principle. Rule to remember: revenue-based method = presumption of inappropriateness, which a revenue threshold or a close correlation can overcome, with the method reviewed at each year-end (IAS 38, paras. 98A, 98B, 98C and 104).","es":""}},{"id":"B","text":{"fr":"","en":"When the predominant limiting factor inherent in the right is reaching a revenue threshold, revenue may be an appropriate basis for amortisation.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A high correlation between revenue and the consumption of the right's benefits allows the presumption to be rebutted.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Once the presumption has been rebutted on acquisition, the method no longer needs to be reviewed for the whole term of the right.","es":""},"correct":false,"feedback":{"fr":"","en":"The method is not fixed at acquisition: amortisation life and method are reviewed at least at each year-end, including a revenue-based method (IAS 38, para. 104). If the facts change, the method is adjusted as a change in estimate. The financial statements of the period concerned bear the effect. Rule to remember: revenue-based method = presumption of inappropriateness, which a revenue threshold or a close correlation can overcome, with the method reviewed at each year-end (IAS 38, paras. 98A, 98B, 98C and 104).","es":""}},{"id":"E","text":{"fr":"","en":"The method used, even a revenue-based one, is reviewed at least at each financial year-end and a change is accounted for as a change in estimate.","es":""},"correct":true}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000363","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVENUE_BASED","IAS38.AMORTISATION.METHOD"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000363","tested_point":"QST.IAS38.000363","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §98B","IAS 38 §98C","IAS 38 §97","IAS 38 §98A"],"exercise":{"prompt":{"fr":"","en":"Canal Boréal acquires the exclusive right to broadcast a television game show format for 6,000,000. The contract provides that the right ends as soon as the cumulative advertising revenue generated by the programme reaches 30,000,000, with no time limit. The right has a nil residual value. Management estimates that this threshold will be reached in about 5 years. During the first year, the programme's advertising revenue amounts to 7,500,000. What amortisation charge should be recognised for the first year?","es":""},"explanation":{"fr":"","en":"The predominant limiting factor inherent in the right is reaching a revenue threshold (IAS 38, para. 98B): the right is expressed as a measure of revenue, which rebuts the presumption (IAS 38, para. 98A), and the revenue to be generated is an appropriate basis for amortisation (IAS 38, para. 98C). The method thus reflects the pattern of consumption of the benefits (IAS 38, para. 97). As the residual value is nil, the depreciable amount is 6,000,000: 6,000,000 × 7,500,000 / 30,000,000 = 1,500,000. The 5-year period is only an estimate that does not limit the right.","es":""},"common_error":{"fr":"","en":"Applying straight-line on the belief that the presumption bars any revenue-based method.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"1,200,000, that is 6,000,000 spread on a straight-line basis over the estimated 5 years, as the presumption prohibits any revenue-based method.","es":""},"correct":false,"feedback":{"fr":"","en":"Straight-line over 5 years is not imposed by the presumption: it is rebuttable, and here the right ends once cumulative revenue reaches 30,000,000, so it is expressed as a measure of revenue (IAS 38, paras. 98A and 98C). The 5-year period remains an estimate. Straight-line would give 1,200,000 instead of 1,500,000. Rule to remember: if the right ends at a cumulative revenue threshold, the revenue to be generated is an appropriate amortisation basis (IAS 38, para. 98C).","es":""}},{"id":"B","text":{"fr":"","en":"1,500,000, that is 6,000,000 × 7,500,000 / 30,000,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"7,500,000, that is the advertising revenue for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The charge is a fraction of the cost of the right, not the amount of revenue: amortisation spreads the depreciable amount of 6,000,000 according to the share of the threshold reached (IAS 38, paras. 97 and 98C). Recognising 7,500,000 of expense would exceed even the cost of the right (6,000,000), which is impossible. Rule to remember: if the right ends at a cumulative revenue threshold, the revenue to be generated is an appropriate amortisation basis (IAS 38, para. 98C).","es":""}},{"id":"D","text":{"fr":"","en":"No charge until the 30,000,000 threshold is reached, since the asset is consumed only at that date.","es":""},"correct":false,"feedback":{"fr":"","en":"The right is consumed as cumulative revenue builds up: amortisation cannot wait until the 30,000,000 threshold is reached (IAS 38, paras. 97 and 98C). From the first year, 7,500,000 / 30,000,000 is a quarter of the threshold reached, hence a quarter of the cost consumed. Rule to remember: if the right ends at a cumulative revenue threshold, the revenue to be generated is an appropriate amortisation basis (IAS 38, para. 98C).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000364","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVENUE_BASED","IAS38.AMORTISATION.METHOD"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000364","tested_point":"QST.IAS38.000364","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §98A","IAS 38 §98B","IAS 38 §98C","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"The Ondelia platform acquires the streaming rights to a film catalogue for 10 years. Subscriptions are sold at variable prices depending on promotions, and the share of revenue attributable to the catalogue fluctuates widely with no link to the use of the rights. The contract sets no revenue cap. Management proposes to amortise the rights in line with subscription revenue. What do you conclude?","es":""},"explanation":{"fr":"","en":"A method based on the revenue from an activity that uses the asset is presumed inappropriate, the presumption being rebutted only if the asset is expressed as a measure of revenue or if a high correlation between revenue and consumption is demonstrated (IAS 38, para. 98A). Here, the contract sets no revenue threshold, so revenue is not the predominant limiting factor (IAS 38, paras. 98B and 98C), and revenue fluctuates with no link to use: neither of the two rebuttal cases is demonstrated. The entity uses a method reflecting the consumption of the benefits, the straight-line method if that pattern cannot be determined reliably (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Accepting subscription revenue as an amortisation basis because it is linked to the activity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The presumption is not rebutted: use a method reflecting the consumption of the rights, the straight-line method if that pattern cannot be determined reliably.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The proposal is acceptable, since subscription revenue is generated by an activity that uses the rights.","es":""},"correct":false,"feedback":{"fr":"","en":"Subscription revenue comes from an activity that uses the rights: this is the case covered by the presumption of inappropriateness (IAS 38, para. 98A). Variable prices and promotions make revenue fluctuate with no link to use of the rights, which does not show a close correlation. Rule to remember: without a revenue threshold or a demonstrated correlation, a revenue-based method remains inappropriate (IAS 38, paras. 98A, 98B and 98C); straight-line is used where no reliable pattern exists (IAS 38, para. 97).","es":""}},{"id":"C","text":{"fr":"","en":"The proposal is acceptable, because the rights can be regarded as expressed in revenue as soon as the platform tracks revenue by catalogue.","es":""},"correct":false,"feedback":{"fr":"","en":"Tracking revenue by catalogue does not make the rights a measure of revenue: the contract sets no revenue cap, so revenue is not the predominant limiting factor (IAS 38, paras. 98B and 98C). The presumption remains applicable. Rule to remember: without a revenue threshold or a demonstrated correlation, a revenue-based method remains inappropriate (IAS 38, paras. 98A, 98B and 98C); straight-line is used where no reliable pattern exists (IAS 38, para. 97).","es":""}},{"id":"D","text":{"fr":"","en":"No amortisation should be recognised until the catalogue's revenue has stabilised.","es":""},"correct":false,"feedback":{"fr":"","en":"Amortisation does not depend on revenue stability: it starts when the rights are available and is spread according to their consumption (IAS 38, para. 97). Waiting for revenue to stabilise would delay the whole charge, while the rights are consumed over 10 years. Rule to remember: without a revenue threshold or a demonstrated correlation, a revenue-based method remains inappropriate (IAS 38, paras. 98A, 98B and 98C); straight-line is used where no reliable pattern exists (IAS 38, para. 97).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000366","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000366","tested_point":"QST.IAS38.000366","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"residual-rule"},"references":["IAS 38 §100"],"exercise":{"prompt":{"fr":"","en":"True or false? A mutual insurer has had bespoke claims management software developed. It estimates that it could resell it for 20% of its cost at the end of its use, although no buyer has made any commitment and there is no active market for this type of software. It may use this residual value.","es":""},"explanation":{"fr":"","en":"False. The residual value of an intangible asset with a finite useful life is presumed to be zero, unless (a) a third party has committed to purchase the asset at the end of its useful life, or (b) there is an active market for the asset, provided both that the residual value can be determined by reference to that market and that the market will probably still exist at the end of the useful life (IAS 38, para. 100). A mere resale estimate, with no purchase commitment and no active market, is not enough: the depreciable amount equals cost. Main trap: confusing an internal resale estimate with a supportable residual value: without a third-party commitment or an active market, the hope of reselling does not count, and the depreciable amount remains the full cost. Rule to remember: residual value is presumed nil without a third-party purchase commitment or an active market meeting the conditions of para. 100 (IAS 38, para. 100).","es":""},"common_error":{"fr":"","en":"Using a residual value based on an internal resale estimate.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000367","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000367","tested_point":"QST.IAS38.000367","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"residual-rule"},"references":["IAS 38 §100"],"exercise":{"prompt":{"fr":"","en":"True or false? Vinéa holds a manufacturing licence that it will use for 5 years. A distributor has contractually committed to buy this licence back for 50,000 at the end of those 5 years. Vinéa may use a residual value of 50,000 to calculate the depreciable amount.","es":""},"explanation":{"fr":"","en":"True. The residual value is presumed to be zero, except in particular when a third party has committed to purchase the asset at the end of its useful life (IAS 38, para. 100). The distributor's contractual commitment justifies a residual value of 50,000, deducted from cost to obtain the depreciable amount. Main trap: doubting that a contractual commitment is enough, when it is one of the two cases provided for. In the financial statements, deducting the 50,000 reduces the annual charge by 10,000. Rule to remember: a third party's commitment to buy at the end of the useful life allows a non-nil residual value (IAS 38, para. 100).","es":""},"common_error":{"fr":"","en":"Ignoring a third party's buy-back commitment and amortising the full cost.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000368","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000368","tested_point":"QST.IAS38.000368","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"residual-rule"},"references":["IAS 38 §100"],"exercise":{"prompt":{"fr":"","en":"A services group holds the following intangible assets with a finite useful life. For which one may it use a non-zero residual value?","es":""},"explanation":{"fr":"","en":"The residual value of an intangible asset with a finite useful life is presumed to be zero, unless (a) a third party has committed to purchase the asset at the end of its useful life, or (b) there is an active market for the asset, provided both that the residual value can be determined by reference to that market and that the market will probably still exist at the end of the useful life (IAS 38, para. 100). Only the transferable taxi licence meets one of these conditions, the active market allowing its residual value to be determined and being expected to remain at the end of use; hopes or discussions without commitment are not enough.","es":""},"common_error":{"fr":"","en":"Using a residual value based on an intention or hope of disposal.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In-house payroll software, designed solely for its own needs and with no potential buyer identified.","es":""},"correct":false,"feedback":{"fr":"","en":"Software designed specifically for the entity has neither an identified buyer nor an active market: the residual value is presumed nil (IAS 38, para. 100). Without a third-party commitment, a hypothetical resale does not justify any residual value. Rule to remember: residual value is nil, unless a third party has committed to buy or an active market meets both conditions (IAS 38, para. 100).","es":""}},{"id":"B","text":{"fr":"","en":"A transferable taxi licence, traded on an active market by reference to which its residual value can be determined and which should still exist at the end of its use.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A secondary brand that management hopes to sell one day to a competitor, with no contact made so far.","es":""},"correct":false,"feedback":{"fr":"","en":"A hope of selling to a competitor is neither a third-party purchase commitment nor an active market: the residual value remains nil (IAS 38, para. 100). As long as no contact has been made, nothing in the facts supports it. Rule to remember: residual value is nil, unless a third party has committed to buy or an active market meets both conditions (IAS 38, para. 100).","es":""}},{"id":"D","text":{"fr":"","en":"A patent for which preliminary disposal discussions are under way, with no commitment from the buyer.","es":""},"correct":false,"feedback":{"fr":"","en":"Preliminary discussions are not a commitment: the buyer is not bound to buy (IAS 38, para. 100). Without a commitment or an active market meeting the conditions, the residual value is nil until a firm commitment exists. Rule to remember: residual value is nil, unless a third party has committed to buy or an active market meets both conditions (IAS 38, para. 100).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000369","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE","IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000703","tested_point":"VG.IAS38.000703","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §100","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"A testing laboratory acquires a licence to use a screening method for {licence_cost} and will operate it for {useful_life} years. A peer laboratory has contractually committed to buy the licence back for {buyback_price} at the end of that period. The straight-line method is used. Calculate the depreciable amount and the annual charge.","es":""},"explanation":{"fr":"","en":"A third party's buy-back commitment justifies a residual value of 120,000 (IAS 38, para. 100). Depreciable amount: 840,000 − 120,000 = 720,000, allocated on a straight-line basis over the useful life (IAS 38, para. 97): 720,000 / 6 = 120,000 per year. Approach: residual value supported by the commitment, depreciable amount = cost − residual value, then division by the life. Main trap: amortising the full cost of 840,000 without deducting the 120,000 buy-back (140,000 a year). Rule to remember: the depreciable amount is cost less the residual value supported by a third party's commitment (IAS 38, paras. 100 and 101).","es":""},"common_error":{"fr":"","en":"Amortising the full cost without deducting the residual value (140,000 per year).","es":""},"format":"CALCULATION","placeholders":[{"id":"licence_cost","value":"840000","unit":"EUR"},{"id":"buyback_price","value":"120000","unit":"EUR"},{"id":"useful_life","value":"6","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the licence","es":""},"value":"840000","unit":"EUR"},{"label":{"fr":"","en":"Agreed buy-back price","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"6","unit":"YEARS"}],"steps":[{"id":"DEPRECIABLE_AMOUNT","label":{"fr":"","en":"Depreciable amount","es":""},"answer":720000,"tolerance":0,"unit":"EUR"},{"id":"ANNUAL_CHARGE","label":{"fr":"","en":"Annual charge","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEPRECIABLE_AMOUNT","meaning":{"fr":"","en":"Depreciable amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the licence","es":""},"value":840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Agreed buy-back price","es":""},"value":120000,"unit":"EUR"}],"result":720000,"unit":"EUR","rationale":{"fr":"","en":"Depreciable amount: 840,000 − 120,000 = 720,000, allocated on a straight-line basis over the useful life (IAS 38, para. 97): 720,000 / 6 = 120,000 per year.","es":""}},{"step":"ANNUAL_CHARGE","meaning":{"fr":"","en":"Annual charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Depreciable amount","es":""},"value":720000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":6,"unit":"YEARS"}],"result":120000,"unit":"EUR","rationale":{"fr":"","en":"Depreciable amount: 840,000 − 120,000 = 720,000, allocated on a straight-line basis over the useful life (IAS 38, para. 97): 720,000 / 6 = 120,000 per year.","es":""}}],"rationale":{"fr":"","en":"the depreciable amount is cost less the residual value supported by a third party's commitment (IAS 38, paras. 100 and 101).","es":""},"references":["REF.IAS38.100","REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000370","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE","IAS38.AMORTISATION.METHOD","IAS38.AMORTISATION.START"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000703","tested_point":"VG.IAS38.000703","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"start-end"},"references":["IAS 38 §100","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"The Marée Haute fishing company acquires a transferable fishing quota for {quota_cost} and will use it for {quota_life} years. These quotas are traded on an active market, by reference to which the residual value at the end of use is determined at {market_residual}; that market will probably still exist at the end of the quota's use. The quota is available for use on 1 October 20X1, that is {months_first_year} months before the year-end of 31 December 20X1. The straight-line method is used. Calculate the depreciable amount and the charge for 20X1.","es":""},"explanation":{"fr":"","en":"An active market allows a non-zero residual value when that value can be determined by reference to the market and the market will probably still exist at the end of use, both conditions being met here (IAS 38, para. 100). Depreciable amount: 500,000 − 80,000 = 420,000. Straight-line amortisation begins on the date of availability (IAS 38, para. 97): 420,000 / 7 × 3/12 = 15,000 for 20X1. Main trap: forgetting the 80,000 market residual value, or recognising a full year when the quota has been available for 3 months. The 20X1 charge (15,000) reduces the quota's carrying amount by the same amount. Rule to remember: an active market meeting both conditions supports a non-nil residual value (IAS 38, para. 100), and amortisation runs from availability (IAS 38, para. 97).","es":""},"common_error":{"fr":"","en":"Forgetting the residual value (500,000 / 7 × 3/12, not a whole number).","es":""},"format":"CALCULATION","placeholders":[{"id":"quota_cost","value":"500000","unit":"EUR"},{"id":"market_residual","value":"80000","unit":"EUR"},{"id":"quota_life","value":"7","unit":"YEARS"},{"id":"months_first_year","value":"3","unit":"MONTHS"}],"data":[{"label":{"fr":"","en":"Cost of the quota","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Residual value determined by reference to the active market","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"7","unit":"YEARS"},{"label":{"fr":"","en":"Months of use in 20X1","es":""},"value":"3","unit":"MONTHS"}],"steps":[{"id":"DEPRECIABLE_AMOUNT","label":{"fr":"","en":"Depreciable amount","es":""},"answer":420000,"tolerance":0,"unit":"EUR"},{"id":"FIRST_YEAR_CHARGE","label":{"fr":"","en":"Charge for 20X1","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEPRECIABLE_AMOUNT","meaning":{"fr":"","en":"Depreciable amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the quota","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Residual value determined by reference to the active market","es":""},"value":80000,"unit":"EUR"}],"result":420000,"unit":"EUR"},{"step":"FIRST_YEAR_CHARGE","meaning":{"fr":"","en":"Charge for 20X1","es":""},"expression":"a / b * c / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Depreciable amount","es":""},"value":420000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":7,"unit":"YEARS"},{"symbol":"c","meaning":{"fr":"","en":"Months of use in 20X1","es":""},"value":3,"unit":"MONTHS"}],"result":15000,"unit":"EUR","rationale":{"fr":"","en":"Straight-line amortisation begins on the date of availability (IAS 38, para. 97): 420,000 / 7 × 3/12 = 15,000 for 20X1.","es":""}}],"rationale":{"fr":"","en":"an active market meeting both conditions supports a non-nil residual value (IAS 38, para. 100), and amortisation runs from availability (IAS 38, para. 97).","es":""},"references":["REF.IAS38.100","REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000371","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE","IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000371","tested_point":"QST.IAS38.000371","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §100","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"A travel agency acquires an online booking platform for {platform_cost} and will use it for {platform_life} years, on a straight-line basis. Its director believes it could be resold for {hoped_resale} at the end of that period, but no buyer has made any commitment and there is no active market for this type of asset. What is the annual amortisation charge?","es":""},"explanation":{"fr":"","en":"In the absence of a third-party purchase commitment and of an active market, the residual value is presumed to be zero (IAS 38, para. 100): the hoped-for resale price is ignored. Cost is allocated on a straight-line basis over the useful life (IAS 38, para. 97): 270,000 / 3 = 90,000 per year. Main trap: deducting the resale price the director hopes for: without a third-party commitment or an active market, the residual value is nil and the full cost is amortised. Rule to remember: a hoped-for resale is not a residual value: without a purchase commitment or an active market, it is nil (IAS 38, para. 100).","es":""},"common_error":{"fr":"","en":"Deducting the hoped-for resale price (75,000 per year).","es":""},"format":"CALCULATION","placeholders":[{"id":"platform_cost","value":"270000","unit":"EUR"},{"id":"hoped_resale","value":"45000","unit":"EUR"},{"id":"platform_life","value":"3","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the platform","es":""},"value":"270000","unit":"EUR"},{"label":{"fr":"","en":"Resale price hoped for by the director","es":""},"value":"45000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"3","unit":"YEARS"}],"steps":[{"id":"ANNUAL_CHARGE","label":{"fr":"","en":"Annual charge","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_CHARGE","meaning":{"fr":"","en":"Annual charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the platform","es":""},"value":270000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":3,"unit":"YEARS"}],"result":90000,"unit":"EUR","rationale":{"fr":"","en":"Cost is allocated on a straight-line basis over the useful life (IAS 38, para. 97): 270,000 / 3 = 90,000 per year.","es":""}}],"rationale":{"fr":"","en":"a hoped-for resale is not a residual value: without a purchase commitment or an active market, it is nil (IAS 38, para. 100).","es":""},"references":["REF.IAS38.100","REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000372","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE","IAS38.AMORTISATION.METHOD","IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000372","tested_point":"QST.IAS38.000372","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §100","IAS 38 §97","IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"On 1 January 20X1, Tissavel acquires a right to use a patented textile pattern for 1,000,000 and will exploit it for 4 years. A competing manufacturer has contractually committed to buy this right back for 200,000 at the end of the 4 years. The entity applies the cost model and the straight-line method. What is the carrying amount of the right at 31 December 20X2?","es":""},"explanation":{"fr":"","en":"The competitor's buy-back commitment justifies a residual value of 200,000 (IAS 38, para. 100). Depreciable amount: 1,000,000 − 200,000 = 800,000, allocated on a straight-line basis over 4 years (IAS 38, para. 97), that is 200,000 per year. Under the cost model, the carrying amount is cost less accumulated amortisation (IAS 38, para. 74): 1,000,000 − 2 × 200,000 = 600,000.","es":""},"common_error":{"fr":"","en":"Amortising the full cost without deducting the residual value supported by the manufacturer's commitment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"500,000, that is cost less two annual charges of 250,000 calculated on the full cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Two charges of 250,000 amount to amortising the full cost of 1,000,000 over 4 years, without deducting the 200,000 residual value guaranteed by the manufacturer (IAS 38, para. 100). The correct charge is 800,000 / 4 = 200,000, and the carrying amount comes to 600,000, not 500,000. Rule to remember: residual value reduces the depreciable amount, and the carrying amount under the cost model is cost less accumulated amortisation (IAS 38, paras. 74 and 100).","es":""}},{"id":"B","text":{"fr":"","en":"600,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"800,000, that is cost less a single annual charge of 200,000.","es":""},"correct":false,"feedback":{"fr":"","en":"A charge of 200,000 corresponds to one year, whereas amortisation ran in both 20X1 and 20X2, giving accumulated amortisation of 400,000 (IAS 38, paras. 74 and 97). The carrying amount at 31 December 20X2 is therefore 1,000,000 − 400,000, not 800,000. Rule to remember: residual value reduces the depreciable amount, and the carrying amount under the cost model is cost less accumulated amortisation (IAS 38, paras. 74 and 100).","es":""}},{"id":"D","text":{"fr":"","en":"400,000, that is 600,000 reduced a second time by the residual value of 200,000.","es":""},"correct":false,"feedback":{"fr":"","en":"Deducting 200,000 a second time from the carrying amount double-counts the residual value: it already reduces the depreciable amount (IAS 38, para. 100). The carrying amount is cost less accumulated amortisation (IAS 38, para. 74), that is 1,000,000 − 400,000 = 600,000. Rule to remember: residual value reduces the depreciable amount, and the carrying amount under the cost model is cost less accumulated amortisation (IAS 38, paras. 74 and 100).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000373","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVIEW"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000373","tested_point":"QST.IAS38.000373","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"review-rule"},"references":["IAS 38 §104","IAS 8 §36"],"exercise":{"prompt":{"fr":"","en":"During the annual review, a carrier finds that the useful life of its parcel tracking software will be longer than expected. How is this change accounted for?","es":""},"explanation":{"fr":"","en":"The amortisation period and method are reviewed at least at each financial year-end and any change is classified as a change in accounting estimate (IAS 38, para. 104), accounted for prospectively (IAS 8, para. 36). Past charges are not restated: the remaining carrying amount is amortised over the new remaining useful life.","es":""},"common_error":{"fr":"","en":"Restating past charges after a longer useful life.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As the correction of an error: the charges of prior periods are restated.","es":""},"correct":false,"feedback":{"fr":"","en":"A revision of useful life is not an error correction: it results from new information about the future and is treated as a change in estimate (IAS 38, para. 104). Past charges are not restated: the effect is recognised prospectively (IAS 8, para. 36). Rule to remember: a longer useful life is a change in estimate, applied prospectively (IAS 38, para. 104).","es":""}},{"id":"B","text":{"fr":"","en":"As a change in accounting policy applied retrospectively at the start of the year.","es":""},"correct":false,"feedback":{"fr":"","en":"A change in useful life is not a change in accounting policy applied retrospectively: amortisation life and method are reviewed at each year-end and a change is a change in estimate (IAS 38, para. 104). The effect is therefore prospective (IAS 8, para. 36), with no opening adjustment. Rule to remember: a longer useful life is a change in estimate, applied prospectively (IAS 38, para. 104).","es":""}},{"id":"C","text":{"fr":"","en":"As a change in estimate, without restating past charges.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As exceptional income equal to the excess of past charges over those under the new life.","es":""},"correct":false,"feedback":{"fr":"","en":"No exceptional income makes up for past charges: the effect of the change in estimate applies to the period of the change and future periods (IAS 8, para. 36). The remaining carrying amount is simply spread over the new remaining life. Rule to remember: a longer useful life is a change in estimate, applied prospectively (IAS 38, para. 104).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000374","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVIEW"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000374","tested_point":"QST.IAS38.000374","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"review-rule"},"references":["IAS 38 §104"],"exercise":{"prompt":{"fr":"","en":"How often, at a minimum, must an entity review the amortisation period and method of an intangible asset with a finite useful life?","es":""},"explanation":{"fr":"","en":"The amortisation period and method of an intangible asset with a finite useful life are reviewed at least at each financial year-end; a change is accounted for as a change in estimate (IAS 38, para. 104). The review does not depend on an indication of impairment.","es":""},"common_error":{"fr":"","en":"Making the review of life and method conditional on an impairment indicator.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At least at each financial year-end.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Only when an indication of impairment arises during the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The review does not depend on an impairment indicator: amortisation life and method are reviewed at least at each year-end (IAS 38, para. 104). Making the review conditional on an indicator would let a pattern of consumption that has become unsuitable go unnoticed, with nothing to trigger it. Rule to remember: amortisation life and method are reviewed at least at each year-end, without waiting for an impairment indicator (IAS 38, para. 104).","es":""}},{"id":"C","text":{"fr":"","en":"Every five years, or earlier if management's strategy changes significantly.","es":""},"correct":false,"feedback":{"fr":"","en":"A five-year interval is too long: the review takes place at least at each year-end (IAS 38, para. 104). A change of strategy is one more factor, not a trigger replacing the annual review. Otherwise a life that has become too long would be corrected several years late. Rule to remember: amortisation life and method are reviewed at least at each year-end, without waiting for an impairment indicator (IAS 38, para. 104).","es":""}},{"id":"D","text":{"fr":"","en":"Once only, on initial recognition, the period and method being fixed thereafter.","es":""},"correct":false,"feedback":{"fr":"","en":"Life and method are not fixed at initial recognition: they are reviewed at least at each year-end, and a change is a change in estimate (IAS 38, para. 104). Fixing them would keep a charge that no longer reflects expected use. Rule to remember: amortisation life and method are reviewed at least at each year-end, without waiting for an impairment indicator (IAS 38, para. 104).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000375","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVIEW","IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000705","tested_point":"VG.IAS38.000705","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §104","IAS 38 §97","IAS 8 §36"],"exercise":{"prompt":{"fr":"","en":"A patent acquired for {patent_cost} is amortised on a straight-line basis over {initial_life} years, with no residual value. After {years_elapsed} years of amortisation, the year-end review shows that the technology will remain usable for longer than expected: the remaining useful life is now {new_remaining_life} years. Calculate the carrying amount at the time of the revision and the revised annual charge.","es":""},"explanation":{"fr":"","en":"Extending the useful life is a change in estimate (IAS 38, para. 104), accounted for prospectively (IAS 8, para. 36). Carrying amount: 600,000 − 4 × 60,000 = 360,000. It is allocated over the revised remaining life (IAS 38, para. 97): 360,000 / 8 = 45,000 per year. Past charges are not changed. Main trap: spreading the original cost over the revised total life (50,000 a year), which amounts to redoing the past. Approach: carrying amount at the review date, then division by the remaining life. Rule to remember: a change in useful life is treated prospectively: the carrying amount is spread over the revised remaining life (IAS 38, para. 104) and (IAS 8, para. 36).","es":""},"common_error":{"fr":"","en":"Allocating the original cost over the revised total life of 12 years (50,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"patent_cost","value":"600000","unit":"EUR"},{"id":"initial_life","value":"10","unit":"YEARS"},{"id":"years_elapsed","value":"4","unit":"YEARS"},{"id":"new_remaining_life","value":"8","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the patent","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Initial useful life","es":""},"value":"10","unit":"YEARS"},{"label":{"fr":"","en":"Years already amortised","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Revised remaining useful life","es":""},"value":"8","unit":"YEARS"}],"steps":[{"id":"CARRYING_AMOUNT_AT_REVIEW","label":{"fr":"","en":"Carrying amount at the revision date","es":""},"answer":360000,"tolerance":0,"unit":"EUR"},{"id":"REVISED_CHARGE","label":{"fr":"","en":"Revised annual charge","es":""},"answer":45000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"REVISED_CHARGE","meaning":{"fr":"","en":"Revised annual charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at the revision date","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Revised remaining useful life","es":""},"value":8,"unit":"YEARS"}],"result":45000,"unit":"EUR","rationale":{"fr":"","en":"It is allocated over the revised remaining life (IAS 38, para. 97): 360,000 / 8 = 45,000 per year.","es":""}}],"rationale":{"fr":"","en":"a change in useful life is treated prospectively: the carrying amount is spread over the revised remaining life (IAS 38, para. 104) and (IAS 8, para. 36).","es":""},"references":["REF.IAS38.104","REF.IAS38.97","REF.IAS8.36"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000376","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVIEW","IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000705","tested_point":"VG.IAS38.000705","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §104","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"A music label acquired the exploitation rights to a catalogue of recordings for {catalogue_cost}, amortised on a straight-line basis over {original_total_life} years with no residual value. After {years_amortised} years of amortisation, the catalogue's lasting success in digital streaming leads to an increase of its total useful life, since acquisition, to {revised_total_life} years. What is the annual charge for the following years?","es":""},"explanation":{"fr":"","en":"The revision of the useful life is a change in estimate, with no restatement of the past (IAS 38, para. 104). Carrying amount: 960,000 − 3 × 120,000 = 600,000. Remaining life: 11 − 3 = 8 years. Revised charge (IAS 38, para. 97): 600,000 / 8 = 75,000. Main trap: the question gives a revised total life from acquisition, not a remaining life: the years already amortised must be deducted. In the financial statements, the revised charge of 75,000 applies to the following years and lowers the annual expense compared with the old charge of 120,000. Rule to remember: the remaining life is the revised total life less the years already elapsed, and the effect of the change is prospective (IAS 38, para. 104).","es":""},"common_error":{"fr":"","en":"Allocating the carrying amount over 11 years instead of the remaining life.","es":""},"format":"CALCULATION","placeholders":[{"id":"catalogue_cost","value":"960000","unit":"EUR"},{"id":"original_total_life","value":"8","unit":"YEARS"},{"id":"years_amortised","value":"3","unit":"YEARS"},{"id":"revised_total_life","value":"11","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the rights","es":""},"value":"960000","unit":"EUR"},{"label":{"fr":"","en":"Initial total useful life","es":""},"value":"8","unit":"YEARS"},{"label":{"fr":"","en":"Years already amortised","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Revised total useful life","es":""},"value":"11","unit":"YEARS"}],"steps":[{"id":"REVISED_CHARGE","label":{"fr":"","en":"Revised annual charge","es":""},"answer":75000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000377","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVIEW","IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000706","tested_point":"VG.IAS38.000706","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §104","IAS 38 §98"],"exercise":{"prompt":{"fr":"","en":"A bicycle manufacturer amortises, on a straight-line basis over {initial_life} years with no residual value, a right to use a welding process acquired for {tool_cost}. After {years_elapsed} years, the year-end review shows that the benefits are in fact consumed as frames are welded, which can now be measured reliably: {remaining_units} frames remain to be produced with this process. The units of production method is adopted from year 3, during which {year3_units} frames are welded. What is the charge for year 3?","es":""},"explanation":{"fr":"","en":"The change in method is a change in estimate, applied without restating the past (IAS 38, para. 104); the new method reflects the pattern of consumption of the benefits (IAS 38, para. 98). Carrying amount at the start of year 3: 400,000 − 2 × 80,000 = 240,000. Charge: 240,000 × 18,000 / 60,000 = 72,000. Main trap: applying the units ratio to the original cost instead of the remaining carrying amount, or keeping straight-line despite the review. In the financial statements, the change of method is a change in estimate: the past is not restated and the charge for year 3 is 72,000. Rule to remember: a method that better reflects the pattern of consumption replaces the old one prospectively and applies to the remaining carrying amount (IAS 38, paras. 98 and 104).","es":""},"common_error":{"fr":"","en":"Applying the units ratio to the original cost (120,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"tool_cost","value":"400000","unit":"EUR"},{"id":"initial_life","value":"5","unit":"YEARS"},{"id":"years_elapsed","value":"2","unit":"YEARS"},{"id":"remaining_units","value":"60000","unit":"UNITS"},{"id":"year3_units","value":"18000","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Cost of the right of use","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Initial useful life","es":""},"value":"5","unit":"YEARS"},{"label":{"fr":"","en":"Years amortised on a straight-line basis","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Frames remaining to be produced","es":""},"value":"60000","unit":"UNITS"},{"label":{"fr":"","en":"Frames welded during year 3","es":""},"value":"18000","unit":"UNITS"}],"steps":[{"id":"YEAR3_CHARGE","label":{"fr":"","en":"Charge for year 3","es":""},"answer":72000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000378","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVIEW","IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000706","tested_point":"VG.IAS38.000706","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §104","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"A market research company amortises a consumer database acquired for {database_cost} using a units-based method, according to the number of queries. At the start of the year, accumulated amortisation amounts to {accumulated_amortisation}. The previous year-end review showed that use of the database is no longer linked to the number of queries and that the pattern of consumption can no longer be determined reliably; the remaining useful life is {remaining_life} years, with no residual value. What is the charge for the year?","es":""},"explanation":{"fr":"","en":"The change in method is a change in estimate, with no restatement of the past (IAS 38, para. 104). As there is no reliable pattern, the straight-line method applies (IAS 38, para. 97). Carrying amount: 500,000 − 320,000 = 180,000, allocated over 3 years: 180,000 / 3 = 60,000. Main trap: restating past charges on a straight-line basis, or spreading the original cost over the remaining life. Here the direction of the change is the reverse of the previous case: units of production give way to straight-line because no reliable pattern exists. In the financial statements, the charge of 60,000 is based on the remaining carrying amount. Rule to remember: where no reliable pattern of consumption exists, straight-line applies to the remaining carrying amount (IAS 38, paras. 97 and 104).","es":""},"common_error":{"fr":"","en":"Allocating the original cost over the remaining life.","es":""},"format":"CALCULATION","placeholders":[{"id":"database_cost","value":"500000","unit":"EUR"},{"id":"accumulated_amortisation","value":"320000","unit":"EUR"},{"id":"remaining_life","value":"3","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the database","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated amortisation at the start of the year","es":""},"value":"320000","unit":"EUR"},{"label":{"fr":"","en":"Remaining useful life","es":""},"value":"3","unit":"YEARS"}],"steps":[{"id":"REVISED_CHARGE","label":{"fr":"","en":"Charge for the year","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"REVISED_CHARGE","meaning":{"fr":"","en":"Charge for the year","es":""},"expression":"(a - b) / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the database","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated amortisation at the start of the year","es":""},"value":320000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Remaining useful life","es":""},"value":3,"unit":"YEARS"}],"result":60000,"unit":"EUR"}],"rationale":{"fr":"","en":"where no reliable pattern of consumption exists, straight-line applies to the remaining carrying amount (IAS 38, paras. 97 and 104).","es":""},"references":["REF.IAS38.104","REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000379","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.REVIEW"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000379","tested_point":"QST.IAS38.000379","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":270,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"review-rule"},"references":["IAS 38 §104","IAS 8 §36"],"exercise":{"prompt":{"fr":"","en":"On 1 January 20X1, Cartéo acquired mapping software for 300,000, amortised on a straight-line basis over 6 years with no residual value. At the year-end review at 31 December 20X2, after recognising the 20X2 charge, management concludes that a change in technical standards will make the software unusable at the end of 20X4: the remaining useful life is now only 2 years. The finance director proposes to restate 20X1 and 20X2 over a total life of 4 years. Which treatment should be adopted?","es":""},"explanation":{"fr":"","en":"Useful life is reviewed at least at each year-end and a change is treated as a change in estimate (IAS 38, para. 104), hence recognised prospectively (IAS 8, para. 36). Carrying amount at 31 December 20X2: 300,000 − 2 × 50,000 = 200,000, amortised over the 2 remaining years: 100,000 a year. The restatement proposal is not adopted. Rule to remember: a change in the estimate of useful life is prospective: the carrying amount is spread over the remaining life (IAS 38, para. 104).","es":""},"common_error":{"fr":"","en":"Restating prior years with the new life.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Restate 20X1 and 20X2 with a charge of 75,000 per year, take the difference of 50,000 to opening equity, then recognise 75,000 per year in 20X3 and 20X4.","es":""},"correct":false,"feedback":{"fr":"","en":"Restating 20X1 and 20X2 over a total life of 4 years would apply the new estimate to the past, whereas the effect of a change in estimate is prospective (IAS 8, para. 36). There is no 50,000 difference to charge to opening equity and no charge of 75,000: the carrying amount of 200,000 is spread over the 2 remaining years (IAS 38, para. 104). Rule to remember: a change in the estimate of useful life is prospective: the carrying amount is spread over the remaining life (IAS 38, para. 104).","es":""}},{"id":"B","text":{"fr":"","en":"Do not restate the past and amortise the carrying amount of 200,000 over the remaining 2 years, that is 100,000 in 20X3 and in 20X4.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Recognise in 20X3 a catch-up of 50,000 in addition to the charge of 75,000, that is 125,000, then 75,000 in 20X4.","es":""},"correct":false,"feedback":{"fr":"","en":"A catch-up of 50,000 in 20X3 would correct the past in the current year, which prospective treatment rules out (IAS 8, para. 36). The carrying amount of 200,000 is simply spread over the remaining life of 2 years: 100,000 a year, with no supplement (IAS 38, para. 104). Rule to remember: a change in the estimate of useful life is prospective: the carrying amount is spread over the remaining life (IAS 38, para. 104).","es":""}},{"id":"D","text":{"fr":"","en":"Keep the charge of 50,000 per year and expense the remaining carrying amount of 100,000 in 20X4.","es":""},"correct":false,"feedback":{"fr":"","en":"Keeping 50,000 a year and then expensing the 100,000 balance in 20X4 ignores the new life of 2 years: the life is reviewed at the year-end and the change applies to the period of the change and later ones (IAS 38, para. 104) (IAS 8, para. 36). The expense is spread over 20X3 and 20X4 at 100,000 a year, not concentrated in 20X4. Rule to remember: a change in the estimate of useful life is prospective: the carrying amount is spread over the remaining life (IAS 38, para. 104).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000380","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000380","tested_point":"QST.IAS38.000380","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §108"],"exercise":{"prompt":{"fr":"","en":"True or false? The Saveurs d'Antan group holds an acquired brand with an indefinite useful life. Last year's impairment test showed a wide margin between recoverable amount and carrying amount, and no indication of impairment has arisen this year. The group may skip testing the brand at this year-end.","es":""},"explanation":{"fr":"","en":"False. An intangible asset with an indefinite useful life is tested under IAS 36 every year, and in addition whenever there is an indication of impairment (IAS 38, para. 108). The absence of any indication and last year's margin do not exempt the entity from the annual test, which remains required: subject to conditions, IAS 36 only allows the most recent detailed calculation of recoverable amount made in a preceding period to be reused, not the test to be skipped (IAS 36, para. 24). Main trap: confusing the annual test with a test triggered by an indicator: the absence of an indicator this year does not remove the annual test. Rule to remember: an asset with an indefinite useful life is tested every year and whenever an indicator of impairment exists (IAS 38, para. 108).","es":""},"common_error":{"fr":"","en":"Skipping the annual test for lack of an impairment indicator.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000381","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000381","tested_point":"QST.IAS38.000381","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §109"],"exercise":{"prompt":{"fr":"","en":"True or false? When an entity concluded on initial recognition that a licence has an indefinite useful life, that assessment no longer needs to be reconsidered afterwards, unless the licence is sold.","es":""},"explanation":{"fr":"","en":"False. The useful life of an intangible asset that is not being amortised is reviewed each period to determine whether events and circumstances continue to support an indefinite life; a change to a finite life is accounted for as a change in estimate (IAS 38, para. 109). Main trap: treating the indefinite life as settled: the review looks at the facts and circumstances of each period. Example: a licence whose demand collapses may see its life become finite. Rule to remember: the useful life of a non-amortised asset is reviewed each period, and a move to a finite life is a change in estimate (IAS 38, para. 109).","es":""},"common_error":{"fr":"","en":"Assuming that an indefinite life adopted at the outset no longer needs to be reviewed.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000382","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000382","tested_point":"QST.IAS38.000382","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §107"],"exercise":{"prompt":{"fr":"","en":"A hotel group holds the following intangible assets. Which one must not be amortised?","es":""},"explanation":{"fr":"","en":"An intangible asset with an indefinite useful life is not amortised (IAS 38, para. 107). The three other assets have a finite useful life, limited by a contract, a planned replacement or legal protection: they are amortised.","es":""},"common_error":{"fr":"","en":"Amortising a brand whose useful life is indefinite.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A casino operating licence granted for 5 years and renewable at a significant cost.","es":""},"correct":false,"feedback":{"fr":"","en":"A renewal that requires a significant cost does not extend the useful life: the licence has a finite life of 5 years, and it is amortised. Being able to renew it at a significant cost does not make it indefinite. Rule to remember: an intangible asset with an indefinite useful life is not amortised (IAS 38, para. 107); a limit on its life leads to amortising it.","es":""}},{"id":"B","text":{"fr":"","en":"Booking software that the entity plans to replace in 4 years.","es":""},"correct":false,"feedback":{"fr":"","en":"The replacement planned in 4 years sets a foreseeable limit on use of the software: its useful life is finite, so it is amortised. Example: software replaced at the end of 20X5 is amortised up to that date. Rule to remember: an intangible asset with an indefinite useful life is not amortised (IAS 38, para. 107); a limit on its life leads to amortising it.","es":""}},{"id":"C","text":{"fr":"","en":"A patent on a connected lock system, protected for another 12 years and used over that whole period.","es":""},"correct":false,"feedback":{"fr":"","en":"A patent protected for 12 years and exploited throughout that period has a finite useful life: legal protection limits the period over which it generates benefits, and it is amortised over 12 years. Rule to remember: an intangible asset with an indefinite useful life is not amortised (IAS 38, para. 107); a limit on its life leads to amortising it.","es":""}},{"id":"D","text":{"fr":"","en":"An acquired brand whose useful life was judged indefinite following a documented analysis.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000383","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE","IAS38.AMORTISATION.REVIEW"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000383","tested_point":"QST.IAS38.000383","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"review-rule"},"references":["IAS 38 §109","IAS 38 §110","IAS 38 §104","IAS 8 §36"],"exercise":{"prompt":{"fr":"","en":"At the year-end, a press publisher concludes that the magazine title it had acquired, previously regarded as having an indefinite useful life, now has a useful life of only 6 years. Which of the following consequences are correct?","es":""},"explanation":{"fr":"","en":"Changing from an indefinite to a finite life is a change in estimate (IAS 38, para. 109); it is therefore accounted for prospectively, without restating the past (IAS 8, para. 36), and the title is amortised over its remaining life, the period and method then being reviewed at least at each year-end (IAS 38, para. 104). This change is also an indication of impairment: the entity compares recoverable amount with carrying amount under IAS 36 (IAS 38, para. 110). No automatic reversal of impairment losses follows.","es":""},"common_error":{"fr":"","en":"Restating the past after the move to a finite life.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The change to a finite life is accounted for as a change in estimate.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Prior periods are restated as if the title had been amortised since its acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"Restating prior years, as if the title had been amortised since acquisition, would apply the new estimate to the past. The move from an indefinite to a finite life is a change in estimate (IAS 38, para. 109), recognised prospectively (IAS 8, para. 36): the past is not restated. Rule to remember: indefinite then finite life: prospective change in estimate (IAS 38, para. 109) and an impairment indicator to test (IAS 38, para. 110).","es":""}},{"id":"C","text":{"fr":"","en":"This change is an indication of impairment: the title is tested by comparing its recoverable amount with its carrying amount.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The title is amortised from this change, over the remaining useful life of 6 years.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Impairment losses previously recognised on the title are automatically reversed.","es":""},"correct":false,"feedback":{"fr":"","en":"The move to a finite life is an impairment indicator: it requires a test comparing recoverable amount and carrying amount (IAS 38, para. 110), not a reversal. No reversal of an earlier loss follows from the change of life. Rule to remember: indefinite then finite life: prospective change in estimate (IAS 38, para. 109) and an impairment indicator to test (IAS 38, para. 110).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000384","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE","IAS38.IMPAIRMENT.IAS36_LINK"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000707","tested_point":"VG.IAS38.000707","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §109","IAS 38 §110"],"exercise":{"prompt":{"fr":"","en":"An acquired cosmetics brand, never amortised because its useful life was judged indefinite, has a carrying amount of {brand_carrying_amount} at 31 December 20X3. At that date, new regulations on certain ingredients lead management to set its remaining useful life at {remaining_life} years, with no residual value. The test performed under IAS 36 gives a recoverable amount of {recoverable_amount}. Calculate the impairment loss to be recognised at 31 December 20X3 and the annual charge from 20X4.","es":""},"explanation":{"fr":"","en":"The change to a finite life is an indication of impairment: the recoverable amount of 910,000 is compared with the carrying amount of 840,000 (IAS 38, para. 110). It is higher: no impairment loss. The change is a change in estimate (IAS 38, para. 109): the carrying amount is amortised over the remaining life, that is 840,000 / 7 = 120,000 per year. Main trap: amortising the recoverable amount (130,000 a year) instead of the carrying amount, or omitting the test on moving to a finite life. In the financial statements, the recoverable amount of 910,000 exceeds the carrying amount of 840,000: no loss, and the charge of 120,000 weighs on profit for the next 7 years. Rule to remember: on moving from an indefinite to a finite life, the asset is tested (IAS 38, para. 110), then its carrying amount is amortised over the remaining life (IAS 38, para. 109).","es":""},"common_error":{"fr":"","en":"Amortising the recoverable amount (130,000 per year) instead of the carrying amount.","es":""},"format":"CALCULATION","placeholders":[{"id":"brand_carrying_amount","value":"840000","unit":"EUR"},{"id":"recoverable_amount","value":"910000","unit":"EUR"},{"id":"remaining_life","value":"7","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Carrying amount of the brand","es":""},"value":"840000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount under IAS 36","es":""},"value":"910000","unit":"EUR"},{"label":{"fr":"","en":"Remaining useful life","es":""},"value":"7","unit":"YEARS"}],"steps":[{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss at 31 December 20X3","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"ANNUAL_CHARGE","label":{"fr":"","en":"Annual charge from 20X4","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_CHARGE","meaning":{"fr":"","en":"Annual charge from 20X4","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the brand","es":""},"value":840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Remaining useful life","es":""},"value":7,"unit":"YEARS"}],"result":120000,"unit":"EUR","rationale":{"fr":"","en":"The change is a change in estimate (IAS 38, para. 109): the carrying amount is amortised over the remaining life, that is 840,000 / 7 = 120,000 per year.","es":""}}],"rationale":{"fr":"","en":"on moving from an indefinite to a finite life, the asset is tested (IAS 38, para. 110), then its carrying amount is amortised over the remaining life (IAS 38, para. 109).","es":""},"references":["REF.IAS38.109","REF.IAS38.110"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000385","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE","IAS38.IMPAIRMENT.IAS36_LINK"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000707","tested_point":"VG.IAS38.000707","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §109","IAS 38 §110"],"exercise":{"prompt":{"fr":"","en":"The regional radio station Onde Claire holds a broadcasting authorisation that has so far been renewed without difficulty and is therefore not amortised. At the end of 20X5, the regulator announces that frequencies will be reallocated by tender in {years_to_expiry} years: the authorisation will end at that date, with no residual value. Its carrying amount is {licence_carrying_amount}; the appointed valuer has determined under IAS 36 a recoverable amount of {licence_recoverable}. What impairment loss should be recognised at the end of 20X5, and what annual charge should be used thereafter?","es":""},"explanation":{"fr":"","en":"The regulator's announcement sets a limit to the useful life: the change to a finite life is a change in estimate (IAS 38, para. 109) and an indication of impairment (IAS 38, para. 110). The recoverable amount of 2,600,000 exceeds the carrying amount of 2,250,000: no impairment loss. Annual charge: 2,250,000 / 9 = 250,000. Main trap: recognising a gain of 350,000 to bring the authorisation up to its higher recoverable amount, or continuing not to amortise it despite the announced expiry. A recoverable amount above the carrying amount gives rise to no impairment loss. Rule to remember: the announcement of an expiry moves the asset to a finite life: a change in estimate (IAS 38, para. 109) and an impairment indicator (IAS 38, para. 110).","es":""},"common_error":{"fr":"","en":"Recognising a gain of 350,000 to bring the asset up to its recoverable amount.","es":""},"format":"CALCULATION","placeholders":[{"id":"licence_carrying_amount","value":"2250000","unit":"EUR"},{"id":"licence_recoverable","value":"2600000","unit":"EUR"},{"id":"years_to_expiry","value":"9","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Carrying amount of the authorisation","es":""},"value":"2250000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount determined under IAS 36","es":""},"value":"2600000","unit":"EUR"},{"label":{"fr":"","en":"Years remaining until reallocation","es":""},"value":"9","unit":"YEARS"}],"steps":[{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss at the end of 20X5","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"ANNUAL_CHARGE","label":{"fr":"","en":"Subsequent annual charge","es":""},"answer":250000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_CHARGE","meaning":{"fr":"","en":"Subsequent annual charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the authorisation","es":""},"value":2250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Years remaining until reallocation","es":""},"value":9,"unit":"YEARS"}],"result":250000,"unit":"EUR"}],"rationale":{"fr":"","en":"the announcement of an expiry moves the asset to a finite life: a change in estimate (IAS 38, para. 109) and an impairment indicator (IAS 38, para. 110).","es":""},"references":["REF.IAS38.109","REF.IAS38.110"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000386","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE","IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000386","tested_point":"QST.IAS38.000386","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §107","IAS 38 §108","IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"On 1 January 20X1, a dairy cooperative acquires a cheese brand for {brand_cost}; the brand's useful life is judged indefinite. The seller had amortised it over {suggested_period} years. The cooperative applies the cost model. After {years_held} years, the annual impairment tests under IAS 36 have all shown a recoverable amount above the carrying amount. What are the accumulated amortisation and the carrying amount of the brand at 31 December 20X3?","es":""},"explanation":{"fr":"","en":"An intangible asset with an indefinite useful life is not amortised (IAS 38, para. 107); it is tested every year under IAS 36 (IAS 38, para. 108). As no test revealed a loss, the carrying amount under the cost model remains equal to cost (IAS 38, para. 74): accumulated amortisation nil, carrying amount 750,000. The former owner's practice is irrelevant. Main trap: adopting the former owner's amortisation period (15 years): it does not bind the cooperative, which assesses useful life itself. A non-amortised asset stays at cost as long as no impairment loss is recognised. Rule to remember: an intangible asset with an indefinite life is not amortised (IAS 38, para. 107) but tested every year (IAS 38, para. 108), and stays at cost under the cost model (IAS 38, para. 74).","es":""},"common_error":{"fr":"","en":"Amortising the brand over 15 years (accumulated 150,000, carrying amount 600,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"brand_cost","value":"750000","unit":"EUR"},{"id":"suggested_period","value":"15","unit":"YEARS"},{"id":"years_held","value":"3","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the brand","es":""},"value":"750000","unit":"EUR"},{"label":{"fr":"","en":"Amortisation period used by the former owner","es":""},"value":"15","unit":"YEARS"},{"label":{"fr":"","en":"Years elapsed","es":""},"value":"3","unit":"YEARS"}],"steps":[{"id":"ACCUMULATED_AMORTISATION","label":{"fr":"","en":"Accumulated amortisation at 31 December 20X3","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount at 31 December 20X3","es":""},"answer":750000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000387","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE","IAS38.USEFUL_LIFE.ASSESSMENT","IAS38.AMORTISATION.REVIEW"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000387","tested_point":"QST.IAS38.000387","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §88","IAS 38 §109","IAS 38 §110","IAS 38 §104","IAS 8 §36"],"exercise":{"prompt":{"fr":"","en":"The Brindor group holds a trade name acquired for a range of biscuits, with a carrying amount of 600,000, not amortised because its useful life was judged indefinite. In December 20X4, the board decides to discontinue the range and stop using the name in 3 years, with no residual value. The test under IAS 36 shows a recoverable amount of 650,000. Which treatment should be adopted?","es":""},"explanation":{"fr":"","en":"A useful life is classified as indefinite only if the analysis does not make it possible to set any horizon beyond which the asset would stop providing positive net cash flows (IAS 38, para. 88). The decision to discontinue the range in 3 years sets precisely such a horizon: the change to a finite life is a change in estimate (IAS 38, para. 109), accounted for prospectively (IAS 8, para. 36), the period and method then being reviewed at least at each year-end (IAS 38, para. 104). It is also an indication of impairment (IAS 38, para. 110): the recoverable amount of 650,000 exceeds the carrying amount of 600,000, so there is no loss. Amortisation: 600,000 / 3 = 200,000 per year.","es":""},"common_error":{"fr":"","en":"Keeping an indefinite life despite the decision to stop using the name.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Keep the indefinite life as long as the name is used, and simply continue the annual test until the range is discontinued.","es":""},"correct":false,"feedback":{"fr":"","en":"The decision to stop using the name in 3 years sets a foreseeable limit to the generation of inflows: the life is no longer indefinite (IAS 38, para. 88). Continuing the annual test without amortising would ignore that limit and keep a carrying amount of 600,000 although the name will be used up in 3 years. Rule to remember: once a horizon is set, the life becomes finite: a prospective change in estimate (IAS 38, para. 109), an impairment test (IAS 38, para. 110), then amortisation over the remaining life.","es":""}},{"id":"B","text":{"fr":"","en":"Restate prior periods as if the name had always had a finite life, then amortise the balance over 3 years.","es":""},"correct":false,"feedback":{"fr":"","en":"Restating the past is not called for: the move to a finite life is a change in estimate (IAS 38, para. 109), recognised prospectively (IAS 8, para. 36). The carrying amount of 600,000 is amortised from the year-end over 3 years, without rebuilding past amortisation. Rule to remember: once a horizon is set, the life becomes finite: a prospective change in estimate (IAS 38, para. 109), an impairment test (IAS 38, para. 110), then amortisation over the remaining life.","es":""}},{"id":"C","text":{"fr":"","en":"Recognise the change to a finite life, with no impairment loss given the test, then amortise 200,000 per year over 3 years.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Derecognise the trade name immediately, since its use will come to an end.","es":""},"correct":false,"feedback":{"fr":"","en":"The name will still be used for 3 years and will provide benefits: ending the range is not immediate, so the asset is not derecognised before its use ends (IAS 38, para. 112). In the meantime, the name is amortised over 3 years. Rule to remember: once a horizon is set, the life becomes finite: a prospective change in estimate (IAS 38, para. 109), an impairment test (IAS 38, para. 110), then amortisation over the remaining life.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000388","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.INDEFINITE_LIFE"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000388","tested_point":"QST.IAS38.000388","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §108"],"exercise":{"prompt":{"fr":"","en":"Aquilon performs the impairment test of a distribution licence with an indefinite useful life every November. In June 20X2, its main customer, which accounts for most of the sales made under the licence, terminates its contract, which is an indication of impairment. The controller proposes to wait for the November test. What should be done?","es":""},"explanation":{"fr":"","en":"An intangible asset with an indefinite useful life is tested under IAS 36 every year and whenever there is an indication of impairment (IAS 38, para. 108). The termination in June is such an indication: a test is required at that date, in addition to the annual test.","es":""},"common_error":{"fr":"","en":"Waiting for the annual test despite an impairment indicator during the year.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Wait until November: for an asset with an indefinite life, only the annual test is required.","es":""},"correct":false,"feedback":{"fr":"","en":"For an asset with an indefinite life, the annual test is required, and also whenever an impairment indicator appears (IAS 38, para. 108). The loss of the main customer in June is such an indicator: waiting until November would delay the detection of a potential loss by five months. Rule to remember: an asset with an indefinite useful life is tested every year and at each impairment indicator (IAS 38, para. 108).","es":""}},{"id":"B","text":{"fr":"","en":"Test the licence as soon as the indication arises in June, and also perform the annual test.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Do nothing this year: a test performed in June would exempt the entity from any other test until 20X3.","es":""},"correct":false,"feedback":{"fr":"","en":"A test performed in June because of an indicator does not replace the annual test: the two requirements coexist (IAS 38, para. 108). Believing oneself exempt until 20X3 would omit the annual test in November. Rule to remember: an asset with an indefinite useful life is tested every year and at each impairment indicator (IAS 38, para. 108).","es":""}},{"id":"D","text":{"fr":"","en":"Start amortising the licence from June to reflect the loss of the customer.","es":""},"correct":false,"feedback":{"fr":"","en":"An impairment indicator triggers a test, not amortisation: an asset with an indefinite life is not amortised (IAS 38, para. 107). If the test reveals a loss, that loss is recognised; starting to amortise does not deal with the indicator. Rule to remember: an asset with an indefinite useful life is tested every year and at each impairment indicator (IAS 38, para. 108).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000390","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.IAS36_LINK"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000390","tested_point":"QST.IAS38.000390","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §111"],"exercise":{"prompt":{"fr":"","en":"An engineering company wants to know whether its structural calculation software, amortised under the cost model, is impaired. Which approach does it follow?","es":""},"explanation":{"fr":"","en":"To determine whether an intangible asset is impaired, the entity applies IAS 36 (IAS 38, para. 111). IAS 38 has no test of its own: the IAS 36 test is based on comparing carrying amount with recoverable amount.","es":""},"common_error":{"fr":"","en":"Applying an IAS 38-specific impairment test based on original cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It applies a test specific to IAS 38 comparing the software's original cost with its fair value at the year-end.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 38 contains no impairment test of its own: it refers to IAS 36 (IAS 38, para. 111). Comparing original cost with fair value is not the IAS 36 approach, which compares the software's carrying amount with its recoverable amount. Rule to remember: to determine whether an intangible asset is impaired, IAS 36 is applied (IAS 38, para. 111).","es":""}},{"id":"B","text":{"fr":"","en":"It applies IAS 36 and compares the software's carrying amount with its recoverable amount.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It compares the carrying amount with original cost and writes down the difference, which reflects wear of the software.","es":""},"correct":false,"feedback":{"fr":"","en":"The gap between original cost and carrying amount is the accumulated amortisation and impairment already recognised (IAS 38, para. 74), not a new loss. Impairing that gap would double the effect of amortisation; impairment is determined under IAS 36 (IAS 38, para. 111). Rule to remember: to determine whether an intangible asset is impaired, IAS 36 is applied (IAS 38, para. 111).","es":""}},{"id":"D","text":{"fr":"","en":"It compares the charge for the year with the revenue generated by the projects using the software.","es":""},"correct":false,"feedback":{"fr":"","en":"Comparing the year's charge with revenue does not measure impairment: amortisation spreads cost over the useful life, and impairment is determined under IAS 36 (IAS 38, para. 111). That comparison does not tell whether the software is worth less than its carrying amount. Rule to remember: to determine whether an intangible asset is impaired, IAS 36 is applied (IAS 38, para. 111).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000391","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.IAS36_LINK"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000391","tested_point":"QST.IAS38.000391","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §111"],"exercise":{"prompt":{"fr":"","en":"The finance director of a toy manufacturer argues that a patent amortised over its finite useful life never needs to be considered for impairment, since amortisation is enough to reflect its loss in value. What should he be told?","es":""},"explanation":{"fr":"","en":"IAS 38 refers to IAS 36 to determine whether an intangible asset is impaired (IAS 38, para. 111). This cross-reference applies to intangible assets in general, amortised or not: amortisation allocates cost, it does not replace the impairment analysis. IAS 38 sets no flat-rate impairment rule.","es":""},"common_error":{"fr":"","en":"Thinking an amortised asset need not be examined for impairment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He is right: only intangible assets with an indefinite useful life are subject to an impairment analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"Impairment analysis is not confined to assets with an indefinite life: for any intangible asset, the entity applies IAS 36 to determine whether it is impaired (IAS 38, para. 111). An amortised patent can lose value, for example if a competing technology makes it less useful. Rule to remember: amortisation does not replace impairment analysis: IAS 36 applies to any intangible asset (IAS 38, para. 111).","es":""}},{"id":"B","text":{"fr":"","en":"He is right, but only if the amortisation method used is diminishing balance.","es":""},"correct":false,"feedback":{"fr":"","en":"The amortisation method, declining-balance or not, does not affect the application of IAS 36: amortisation spreads cost, it does not replace impairment analysis (IAS 38, para. 111). A patent amortised on a declining basis is also subject to IAS 36. Rule to remember: amortisation does not replace impairment analysis: IAS 36 applies to any intangible asset (IAS 38, para. 111).","es":""}},{"id":"C","text":{"fr":"","en":"He is wrong: IAS 38 requires the patent to be written down to 50% of its cost as soon as its sales decline.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 38 sets no flat reduction to 50 % of cost: impairment is determined under IAS 36 by comparing the carrying amount with the recoverable amount (IAS 38, para. 111). A fall in sales may prompt an impairment analysis, without fixing a loss scale. Rule to remember: amortisation does not replace impairment analysis: IAS 36 applies to any intangible asset (IAS 38, para. 111).","es":""}},{"id":"D","text":{"fr":"","en":"He is wrong: to determine whether the patent is impaired, the entity applies IAS 36, whether or not the asset is amortised.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000392","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.IAS36_LINK","IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000709","tested_point":"VG.IAS38.000709","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §111","IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"A licence to manufacture a generic medicine, acquired for {licence_cost} and measured under the cost model, has accumulated amortisation of {accumulated_amortisation} at the year-end. As a competitor has launched a cheaper product, the entity performs a test under IAS 36, which results in a recoverable amount of {recoverable_amount}. Under IAS 36, when the recoverable amount is lower than the carrying amount, the difference is recognised as an impairment loss in profit or loss. Calculate the carrying amount before the test and the impairment loss.","es":""},"explanation":{"fr":"","en":"Under the cost model, the carrying amount is cost less accumulated amortisation and impairment losses (IAS 38, para. 74): 800,000 − 300,000 = 500,000. Impairment is determined under IAS 36 (IAS 38, para. 111): the recoverable amount of 380,000 is lower than the carrying amount, hence a loss of 500,000 − 380,000 = 120,000. Approach: carrying amount = cost − accumulated amortisation, then the difference from the recoverable amount. Main trap: comparing the recoverable amount with original cost (loss of 420,000) instead of the carrying amount. Rule to remember: the impairment loss is the excess of the carrying amount (cost less accumulated amortisation) over the recoverable amount determined under IAS 36 (IAS 38, paras. 74 and 111).","es":""},"common_error":{"fr":"","en":"Comparing the recoverable amount with original cost (loss of 420,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"licence_cost","value":"800000","unit":"EUR"},{"id":"accumulated_amortisation","value":"300000","unit":"EUR"},{"id":"recoverable_amount","value":"380000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the licence","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated amortisation","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount under IAS 36","es":""},"value":"380000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT_BEFORE_TEST","label":{"fr":"","en":"Carrying amount before the test","es":""},"answer":500000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT_BEFORE_TEST","meaning":{"fr":"","en":"Carrying amount before the test","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the licence","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated amortisation","es":""},"value":300000,"unit":"EUR"}],"result":500000,"unit":"EUR","rationale":{"fr":"","en":"Under the cost model, the carrying amount is cost less accumulated amortisation and impairment losses (IAS 38, para. 74): 800,000 − 300,000 = 500,000.","es":""}},{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount before the test","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount under IAS 36","es":""},"value":380000,"unit":"EUR"}],"result":120000,"unit":"EUR","rationale":{"fr":"","en":"Impairment is determined under IAS 36 (IAS 38, para. 111): the recoverable amount of 380,000 is lower than the carrying amount, hence a loss of 500,000 − 380,000 = 120,000.","es":""}}],"rationale":{"fr":"","en":"the impairment loss is the excess of the carrying amount (cost less accumulated amortisation) over the recoverable amount determined under IAS 36 (IAS 38, paras. 74 and 111).","es":""},"references":["REF.IAS38.111","REF.IAS38.74"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000393","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.IAS36_LINK","IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000709","tested_point":"VG.IAS38.000709","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §111","IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"An online bank measures its internally developed payment platform at cost; the platform cost {software_cost} and has been amortised by {amortisation_to_date} to date. Following a major outage of the platform, the bank performs a test under IAS 36: the recoverable amount determined is {value_in_test}. Under IAS 36, when the recoverable amount is lower than the carrying amount, the difference is recognised as an impairment loss in profit or loss. What is the carrying amount before the test and what impairment loss must be recognised?","es":""},"explanation":{"fr":"","en":"Carrying amount under the cost model (IAS 38, para. 74): 1,350,000 − 450,000 = 900,000. Under IAS 36, which applies to intangible assets (IAS 38, para. 111), the recoverable amount of 990,000 is higher than the carrying amount: no impairment loss is recognised, and no gain either. Main trap: comparing the recoverable amount with cost and concluding a loss of 360,000, or believing a gain is recognised because the recoverable amount exceeds the carrying amount. Here 990,000 exceeds 900,000: no loss. Rule to remember: a loss arises when the recoverable amount is below the carrying amount (IAS 36, para. 59); otherwise, the IAS 36 test (IAS 38, para. 111) gives rise to no loss.","es":""},"common_error":{"fr":"","en":"Comparing the recoverable amount with cost and recognising a loss of 360,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"software_cost","value":"1350000","unit":"EUR"},{"id":"amortisation_to_date","value":"450000","unit":"EUR"},{"id":"value_in_test","value":"990000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the platform","es":""},"value":"1350000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated amortisation","es":""},"value":"450000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount determined under IAS 36","es":""},"value":"990000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT_BEFORE_TEST","label":{"fr":"","en":"Carrying amount before the test","es":""},"answer":900000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT_BEFORE_TEST","meaning":{"fr":"","en":"Carrying amount before the test","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the platform","es":""},"value":1350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated amortisation","es":""},"value":450000,"unit":"EUR"}],"result":900000,"unit":"EUR"}],"rationale":{"fr":"","en":"a loss arises when the recoverable amount is below the carrying amount (IAS 36, para. 59); otherwise, the IAS 36 test (IAS 38, para. 111) gives rise to no loss.","es":""},"references":["REF.IAS38.111","REF.IAS38.74"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000394","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.IAS36_LINK","IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000710","tested_point":"VG.IAS38.000710","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §111","IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"A sports club holds rights to exploit the image of its stadium, acquired for {rights_cost} and measured under the cost model. At the year-end, accumulated amortisation stands at {accumulated_amortisation} and an impairment loss of {prior_impairment} was already recognised two years ago. The team's relegation leads to a new test under IAS 36, which gives a recoverable amount of {recoverable_amount}. Under IAS 36, when the recoverable amount is lower than the carrying amount, the difference is recognised as an impairment loss in profit or loss. Calculate the new impairment loss and the carrying amount after the test.","es":""},"explanation":{"fr":"","en":"Under the cost model, the carrying amount deducts both accumulated amortisation and accumulated impairment losses (IAS 38, para. 74): 2,000,000 − 600,000 − 200,000 = 1,200,000. The test falls under IAS 36 (IAS 38, para. 111): loss of 1,200,000 − 950,000 = 250,000, and carrying amount reduced to 950,000. Main trap: leaving out the earlier impairment loss of 200,000 in computing the carrying amount (loss of 450,000 instead of 250,000). In the financial statements, the new loss of 250,000 is recognised in profit or loss and brings the carrying amount down to 950,000. Rule to remember: the carrying amount under the cost model deducts accumulated amortisation and impairment losses (IAS 38, para. 74) before comparison with the recoverable amount (IAS 38, para. 111).","es":""},"common_error":{"fr":"","en":"Omitting the prior loss of 200,000 and calculating a loss of 450,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"rights_cost","value":"2000000","unit":"EUR"},{"id":"accumulated_amortisation","value":"600000","unit":"EUR"},{"id":"prior_impairment","value":"200000","unit":"EUR"},{"id":"recoverable_amount","value":"950000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the rights","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated amortisation","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated prior impairment losses","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount under IAS 36","es":""},"value":"950000","unit":"EUR"}],"steps":[{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"New impairment loss","es":""},"answer":250000,"tolerance":0,"unit":"EUR"},{"id":"CARRYING_AMOUNT_AFTER_TEST","label":{"fr":"","en":"Carrying amount after the test","es":""},"answer":950000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"New impairment loss","es":""},"expression":"(a - b - c) - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the rights","es":""},"value":2000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated amortisation","es":""},"value":600000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Accumulated prior impairment losses","es":""},"value":200000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Recoverable amount under IAS 36","es":""},"value":950000,"unit":"EUR"}],"result":250000,"unit":"EUR","rationale":{"fr":"","en":"The test falls under IAS 36 (IAS 38, para. 111): loss of 1,200,000 − 950,000 = 250,000, and carrying amount reduced to 950,000.","es":""}}],"rationale":{"fr":"","en":"the carrying amount under the cost model deducts accumulated amortisation and impairment losses (IAS 38, para. 74) before comparison with the recoverable amount (IAS 38, para. 111).","es":""},"references":["REF.IAS38.111","REF.IAS38.74"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000395","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.IAS36_LINK","IAS38.MEASUREMENT_MODEL.COST_MODEL","IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000710","tested_point":"VG.IAS38.000710","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §111","IAS 38 §74","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"A solar panel manufacturer acquired a patent on an anti-reflective coating for {patent_cost}, amortised on a straight-line basis over {patent_life} years with no residual value. After {years_amortised} years of amortisation, the emergence of a more efficient competing technology leads to a test under IAS 36, which shows a recoverable amount of {recoverable_amount}. No impairment loss has been recognised so far. Under IAS 36, when the recoverable amount is lower than the carrying amount, the difference is recognised as an impairment loss in profit or loss. Calculate the carrying amount before the test and the impairment loss.","es":""},"explanation":{"fr":"","en":"Straight-line charge (IAS 38, para. 97): 720,000 / 8 = 90,000 per year, that is accumulated amortisation of 270,000 after 3 years. Carrying amount under the cost model (IAS 38, para. 74): 720,000 − 270,000 = 450,000. The test falls under IAS 36 (IAS 38, para. 111): loss of 450,000 − 345,000 = 105,000. Main trap: comparing the recoverable amount with cost (loss of 375,000) or counting two years of amortisation instead of three. The carrying amount of 450,000 must be established first; the loss of 105,000 is an expense for the year. Rule to remember: before the IAS 36 test (IAS 38, para. 111), the carrying amount is computed by deducting accumulated amortisation from cost (IAS 38, paras. 74 and 97).","es":""},"common_error":{"fr":"","en":"Comparing the recoverable amount with cost (loss of 375,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"patent_cost","value":"720000","unit":"EUR"},{"id":"patent_life","value":"8","unit":"YEARS"},{"id":"years_amortised","value":"3","unit":"YEARS"},{"id":"recoverable_amount","value":"345000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the patent","es":""},"value":"720000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"8","unit":"YEARS"},{"label":{"fr":"","en":"Years amortised","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Recoverable amount under IAS 36","es":""},"value":"345000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT_BEFORE_TEST","label":{"fr":"","en":"Carrying amount before the test","es":""},"answer":450000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":105000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount before the test","es":""},"value":450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount under IAS 36","es":""},"value":345000,"unit":"EUR"}],"result":105000,"unit":"EUR"}],"rationale":{"fr":"","en":"before the IAS 36 test (IAS 38, para. 111), the carrying amount is computed by deducting accumulated amortisation from cost (IAS 38, paras. 74 and 97).","es":""},"references":["REF.IAS38.111","REF.IAS38.74","REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000399","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.IAS36_LINK"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000399","tested_point":"QST.IAS38.000399","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §111"],"exercise":{"prompt":{"fr":"","en":"Hélicéa holds a patent on a wind turbine blade, with a carrying amount of 300,000 and a cost of 320,000. After a failed tender, the test performed under IAS 36 gives a recoverable amount of 260,000. Out of prudence, the chief executive wants to write the patent down to 200,000. Under IAS 36, the impairment loss is the excess of the carrying amount over the recoverable amount. What impairment loss should be recognised?","es":""},"explanation":{"fr":"","en":"Impairment of an intangible asset is determined under IAS 36 (IAS 38, para. 111), not on the basis of a prudent assessment. The recoverable amount of 260,000 is compared with the carrying amount of 300,000: loss of 300,000 − 260,000 = 40,000.","es":""},"common_error":{"fr":"","en":"Writing the asset down to a value chosen out of prudence instead of the recoverable amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"100,000, to reflect the chief executive's prudent assessment, which is more conservative than the test.","es":""},"correct":false,"feedback":{"fr":"","en":"The impairment loss does not result from a prudence decision by the CEO: it is measured under IAS 36 by comparing the carrying amount (300,000) with the recoverable amount (260,000) (IAS 38, para. 111). Writing the patent down to 200,000 would recognise a loss of 100,000 (60,000 more than the measured loss); in the financial statements, assets and profit would be wrongly understated. Rule to remember: the amount of the loss comes from the IAS 36 test, not from a write-down decided out of prudence (IAS 38, para. 111).","es":""}},{"id":"B","text":{"fr":"","en":"None, because a patent amortised over its finite useful life is not subject to an impairment analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 applies to any intangible asset, including a patent amortised over a finite life (IAS 38, para. 111). Amortisation spreads cost, it does not remove the need for the test. Here the recoverable amount of 260,000 is below the carrying amount of 300,000: a loss exists. Rule to remember: amortisation does not replace the impairment test, which falls under IAS 36 for any intangible asset (IAS 38, para. 111).","es":""}},{"id":"C","text":{"fr":"","en":"40,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"60,000, that is the difference between the patent's original cost and its recoverable amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The comparison is made with the carrying amount (300,000), not original cost (320,000): the 20,000 difference corresponds to amortisation already recognised (IAS 38, paras. 74 and 111). A loss of 60,000 would impair that already-amortised part a second time. Rule to remember: the loss is calculated from the carrying amount, not from original cost (IAS 38, para. 111).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000400","standard_id":"IAS38","concept_ids":["IAS38.IMPAIRMENT.IAS36_LINK"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000400","tested_point":"QST.IAS38.000400","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000016","section_id":"no-amortisation"},"references":["IAS 38 §111"],"exercise":{"prompt":{"fr":"","en":"Nautéo's year-end file contains, for navigation software with a carrying amount of 500,000: a report prepared under IAS 36 setting the recoverable amount at 430,000, and an estimate by the insurer, prepared to set the insurance premium, of 380,000. Under IAS 36, the impairment loss is the excess of the carrying amount over the recoverable amount. What impairment loss should be recognised?","es":""},"explanation":{"fr":"","en":"Impairment of an intangible asset is determined under IAS 36 (IAS 38, para. 111): only the recoverable amount determined under that standard is relevant. Loss: 500,000 − 430,000 = 70,000. The insurer's estimate, prepared for other purposes, is not a recoverable amount within the meaning of IAS 36.","es":""},"common_error":{"fr":"","en":"Using a third party's estimate prepared for other purposes as the recoverable amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"70,000.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"120,000, using the insurer's estimate, which is more recent and lower than the report.","es":""},"correct":false,"feedback":{"fr":"","en":"The insurer's estimate was prepared to set a premium, not under IAS 36: it is not a recoverable amount (IAS 38, para. 111). Using 380,000 would give a loss of 120,000 instead of 70,000, which is 50,000 too much. Rule to remember: the impairment loss is measured with the recoverable amount determined under IAS 36, not with an estimate prepared for other purposes (IAS 38, para. 111).","es":""}},{"id":"C","text":{"fr":"","en":"None, because only an actual disposal of the software would allow a loss to be recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"An impairment loss is recognised as soon as the IAS 36 test shows it, without waiting for a disposal (IAS 38, para. 111). Here the recoverable amount of 430,000 is below the carrying amount of 500,000: a loss of 70,000 exists before any sale. Rule to remember: the impairment loss is measured with the recoverable amount determined under IAS 36, not with an estimate prepared for other purposes (IAS 38, para. 111).","es":""}},{"id":"D","text":{"fr":"","en":"50,000, that is the difference between the two estimates available in the year-end file.","es":""},"correct":false,"feedback":{"fr":"","en":"The 50,000 gap between the two estimates in the file measures nothing: the loss is computed between the carrying amount (500,000) and the recoverable amount determined under IAS 36 (430,000) (IAS 38, para. 111). Comparing two estimates from different sources is not the test. Rule to remember: the impairment loss is measured with the recoverable amount determined under IAS 36, not with an estimate prepared for other purposes (IAS 38, para. 111).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000401","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.TRIGGERS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000401","tested_point":"QST.IAS38.000401","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §112"],"exercise":{"prompt":{"fr":"","en":"True or false? An intangible asset is derecognised when the entity sells it to a third party.","es":""},"explanation":{"fr":"","en":"True. The disposal of the asset, for example its sale, is one of the two events that lead to its derecognition; the other is the absence of any future economic benefits expected from its use or disposal (IAS 38, para. 112). Main trap: keeping on the balance sheet an intangible asset already sold to a third party. Example: a patent that has been sold leaves the balance sheet on the date of disposal. Rule to remember: an intangible asset is derecognised on disposal, for example when it is sold (IAS 38, para. 112).","es":""},"common_error":{"fr":"","en":"Keeping an intangible asset already sold to a third party on the balance sheet.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000402","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.TRIGGERS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000402","tested_point":"QST.IAS38.000402","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §112"],"exercise":{"prompt":{"fr":"","en":"True or false? As long as no sale has taken place, an intangible asset remains recognised, even if the entity no longer expects any future economic benefits from either its use or its disposal.","es":""},"explanation":{"fr":"","en":"False. Derecognition does not require a sale: it also occurs when the entity no longer expects any future economic benefits from the use of the asset or from its disposal (IAS 38, para. 112). Keeping such an asset in the statement of financial position would overstate assets. Main trap: believing a sale is necessary to remove the asset from the balance sheet. Example: a patent banned by regulation, with no possible buyer, is derecognised even without a sale. Rule to remember: derecognition occurs on disposal or when no future economic benefits are expected from use or disposal (IAS 38, para. 112).","es":""},"common_error":{"fr":"","en":"Waiting for a sale to derecognise an asset from which no future benefit is expected.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000403","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.TRIGGERS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000403","tested_point":"QST.IAS38.000403","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §112"],"exercise":{"prompt":{"fr":"","en":"True or false? A fully amortised payroll software that the entity still uses every month to produce payslips must be derecognised because its carrying amount is nil.","es":""},"explanation":{"fr":"","en":"False. The asset has neither been disposed of nor lost its future benefits: it is still in use and provides benefits to the entity. Neither of the two derecognition triggers is met (IAS 38, para. 112). A nil carrying amount is not, on its own, a ground for derecognition. Main trap: confusing a nil carrying amount with no expected future benefits. Example: fully amortised payroll software still used every month still provides benefits. Rule to remember: derecognition depends on disposal or on the absence of expected future benefits, not on the level of the carrying amount (IAS 38, para. 112).","es":""},"common_error":{"fr":"","en":"Derecognising an asset still in service because its carrying amount is nil.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000404","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.TRIGGERS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000404","tested_point":"QST.IAS38.000404","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §112"],"exercise":{"prompt":{"fr":"","en":"Which two events lead to the derecognition of an intangible asset under IAS 38?","es":""},"explanation":{"fr":"","en":"An intangible asset is derecognised either on disposal or when no future economic benefits are expected any more from its use or disposal (IAS 38, para. 112). The other events listed relate to amortisation or impairment, or are not accounting criteria.","es":""},"common_error":{"fr":"","en":"Derecognising an asset because of full amortisation or an impairment loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its full amortisation and the end of its use by the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"A fully amortised asset can still provide benefits to the entity: full amortisation is not a trigger for derecognition (IAS 38, para. 112). Likewise, ceasing to use the asset does not rule out a future sale, hence benefits from disposal. Rule to remember: two triggers for derecognition: disposal, or no expected future economic benefit (IAS 38, para. 112).","es":""}},{"id":"B","text":{"fr":"","en":"An impairment loss and a fall in its fair value below its original cost.","es":""},"correct":false,"feedback":{"fr":"","en":"An impairment loss or a fall in fair value below original cost is a matter of impairment, not derecognition: the asset stays recognised until disposal or the absence of future benefits is established (IAS 38, para. 112). Example: an impaired patent stays on the balance sheet at its reduced carrying amount. Rule to remember: two triggers for derecognition: disposal, or no expected future economic benefit (IAS 38, para. 112).","es":""}},{"id":"C","text":{"fr":"","en":"Its disposal, or the absence of future economic benefits expected from its use or disposal.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Its reclassification as an expense and management's decision to stop tracking it in the accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"Derecognition does not result from an arbitrary management decision, such as no longer tracking the asset or reclassifying it to expense: it rests on disposal of the asset or the absence of expected future economic benefit (IAS 38, para. 112). An asset that is still useful does not leave the balance sheet by a mere internal decision. Rule to remember: two triggers for derecognition: disposal, or no expected future economic benefit (IAS 38, para. 112).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000405","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.TRIGGERS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000405","tested_point":"QST.IAS38.000405","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §112"],"exercise":{"prompt":{"fr":"","en":"Valtrion holds a patent on a surface-treatment process. A new regulation permanently bans the process: Valtrion stops using it, no buyer or licensee is conceivable and no other benefit is expected from the patent. What should Valtrion do?","es":""},"explanation":{"fr":"","en":"No future economic benefits are expected from either the use or the disposal of the patent: the asset must be derecognised (IAS 38, para. 112). The remaining term of the legal protection changes nothing, because the right no longer provides any benefit.","es":""},"common_error":{"fr":"","en":"Keeping on the balance sheet a patent that has become unusable while waiting for a sale or the expiry of the rights.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Derecognise the patent.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Keep the patent as an asset until its legal protection expires.","es":""},"correct":false,"feedback":{"fr":"","en":"The remaining legal protection changes nothing: the patent survives in law but provides no benefit, neither through use nor through disposal (IAS 38, para. 112). Keeping it on the balance sheet until expiry would maintain an asset with no future benefit, overstating assets. Rule to remember: an asset from which no future economic benefit is expected is derecognised, even without a sale (IAS 38, para. 112).","es":""}},{"id":"C","text":{"fr":"","en":"Keep the patent as an asset and suspend its amortisation until the regulation possibly changes.","es":""},"correct":false,"feedback":{"fr":"","en":"Suspending amortisation settles nothing: no change in regulation is expected, so no future benefit is expected and the asset is derecognised (IAS 38, para. 112). Waiting for a possibility with no supporting evidence would keep a carrying amount with no benefit behind it. Rule to remember: an asset from which no future economic benefit is expected is derecognised, even without a sale (IAS 38, para. 112).","es":""}},{"id":"D","text":{"fr":"","en":"Keep the patent as an asset until it is sold, since only a sale allows it to be derecognised.","es":""},"correct":false,"feedback":{"fr":"","en":"Sale is one of the two triggers, not a precondition: no expected future economic benefit from use or disposal is enough to derecognise (IAS 38, para. 112). Here no buyer or licensee is conceivable, so no sale will come. Rule to remember: an asset from which no future economic benefit is expected is derecognised, even without a sale (IAS 38, para. 112).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000406","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.TRIGGERS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000406","tested_point":"QST.IAS38.000406","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §112"],"exercise":{"prompt":{"fr":"","en":"The Orbelline group has stopped selling products under a brand acquired a few years ago. The brand is no longer used, but a competitor has made a firm offer to buy it next quarter, and Orbelline intends to accept it. At the year-end, the brand does not yet meet the criteria for classification as held for sale (IFRS 5). How is the brand treated at the year-end?","es":""},"explanation":{"fr":"","en":"Derecognition occurs on disposal or when no future economic benefits are expected from either use or disposal (IAS 38, para. 112). Here, the brand is no longer used, but a benefit is expected from its forthcoming sale, and the disposal has not yet taken place: the brand stays recognised until it is sold.","es":""},"common_error":{"fr":"","en":"Derecognising a brand as soon as it is no longer used, or as soon as management decides to sell it, without waiting for the actual disposal.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is derecognised, because it is no longer used.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer reads the criterion as « the brand is no longer used », whereas derecognition requires that no future benefit is expected from use or from disposal (IAS 38, para. 112). Here, the competitor's firm offer means sale proceeds are expected, which is a future benefit. Rule to remember: ceasing to use an asset is not enough to derecognise it while a benefit is expected from its disposal.","es":""}},{"id":"B","text":{"fr":"","en":"It is derecognised, because the entity has decided to part with it.","es":""},"correct":false,"feedback":{"fr":"","en":"Deciding to part with an asset is not the same as disposing of it: Orbelline intends to accept the offer, but the sale has not taken place at the year-end. Derecognition occurs on disposal, or when no benefit is expected from use or disposal (IAS 38, para. 112), and the sale is still to be completed. Rule to remember: an intention to sell does not derecognise the asset; the actual disposal does.","es":""}},{"id":"C","text":{"fr":"","en":"It is reclassified as an expense of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"Expensing the brand is not the prescribed treatment: as long as a benefit is expected from the sale, the asset stays recognised at its carrying amount. It leaves the balance sheet on disposal, or when no benefit is expected from use or disposal (IAS 38, para. 112). Rule to remember: ceasing to use an asset does not turn it into an expense; the derecognition cases are those of paragraph 112.","es":""}},{"id":"D","text":{"fr":"","en":"It remains recognised as long as it has not been disposed of.","es":""},"correct":true}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000407","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.TRIGGERS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000407","tested_point":"QST.IAS38.000407","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §112"],"exercise":{"prompt":{"fr":"","en":"At the year-end, Duremont reviews five intangible assets. Which ones must it derecognise?","es":""},"explanation":{"fr":"","en":"Derecognition occurs on disposal (customer list sold) or when no future economic benefits are expected from either use or disposal (database with no prospects) (IAS 38, para. 112). The temporarily idle licence and the licensed-out patent still provide benefits; a recoverable amount below the carrying amount is an impairment matter.","es":""},"common_error":{"fr":"","en":"Keeping on the balance sheet a database that is unusable and has no prospect of sale.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A software licence whose use is suspended for three months during a server migration.","es":""},"correct":false,"feedback":{"fr":"","en":"A three-month suspension during a server migration is a temporary interruption: the licence will be used again and still provides benefits. Derecognition requires a disposal, or that no benefit is expected from use or disposal (IAS 38, para. 112). Rule to remember: a temporary period of non-use does not derecognise the asset.","es":""}},{"id":"B","text":{"fr":"","en":"An acquired customer list, sold to a partner during the year.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An operating right whose recoverable amount, provided by the valuer, is lower than its carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"A recoverable amount below the carrying amount signals impairment, not a disposal: the right is still exploited and provides benefits. Derecognition occurs on disposal or when no benefit is expected from use or disposal (IAS 38, para. 112). Rule to remember: a loss in value is a matter for an impairment test, not for derecognition.","es":""}},{"id":"D","text":{"fr":"","en":"A database that has become unusable after the end of a partnership, with no prospect of use or sale.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A patent that Duremont no longer uses itself but now licenses to a third party in exchange for royalties.","es":""},"correct":false,"feedback":{"fr":"","en":"Duremont no longer exploits the patent itself, but licensing it generates royalties, which are future economic benefits. The case of no expected benefit from use or disposal is therefore not met and the patent stays recognised (IAS 38, para. 112). Rule to remember: an expected benefit, even in the form of royalties, keeps the asset on the balance sheet.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000408","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000408","tested_point":"QST.IAS38.000408","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §113"],"exercise":{"prompt":{"fr":"","en":"How is the gain or loss arising from the derecognition of an intangible asset determined and recognised?","es":""},"explanation":{"fr":"","en":"The gain or loss is the difference between the net disposal proceeds and the carrying amount of the asset; it is recognised in profit or loss when the asset is derecognised, and a gain is not classified as revenue (IAS 38, para. 113).","es":""},"common_error":{"fr":"","en":"Calculating the result on disposal from the original cost instead of the carrying amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Gross selling price less original cost, in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"This formula compares the gross price with the original cost: it ignores the amortisation already recognised and the costs of disposal. The gain or loss is the net disposal proceeds minus the carrying amount (IAS 38, para. 113). Example: an asset acquired for 100, amortised by 60 and sold for 55 with 5 of costs gives 50 − 40 = 10 of gain, not 55 − 100. Rule to remember: compare net disposal proceeds with the carrying amount, not with the original cost.","es":""}},{"id":"B","text":{"fr":"","en":"Net disposal proceeds less carrying amount, in profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Gross selling price less carrying amount, in revenue.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer combines two errors: it starts from the gross price without deducting the costs of disposal, and it presents the gain as revenue, whereas a gain on derecognition is not classified as revenue (IAS 38, para. 113). Example: a price of 55 with 5 of costs gives net proceeds of 50. Rule to remember: the result on disposal is calculated on net proceeds and presented in profit or loss, outside revenue.","es":""}},{"id":"D","text":{"fr":"","en":"Net disposal proceeds less carrying amount, directly in equity without going through profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The calculation is right, but the counterpart is not: the gain or loss on derecognition is recognised in profit or loss, when the asset is derecognised (IAS 38, para. 113), not directly in equity. Rule to remember: the gain or loss on disposal goes through the profit or loss of the period.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000409","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000801","tested_point":"VG.IAS38.000801","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §113"],"exercise":{"prompt":{"fr":"","en":"Kerlune sells a distribution licence acquired for {cost} and amortised by {accumulated_amortisation} at the date of sale. The agreed price is {sale_price} and Kerlune pays {disposal_costs} of broker fees to complete the sale. Calculate the carrying amount of the licence at the date of sale and the result on disposal.","es":""},"explanation":{"fr":"","en":"Approach: carrying amount = cost − accumulated amortisation = 240,000 − 150,000 = 90,000; net disposal proceeds = price − fees = 80,000 − 5,000 = 75,000; result = 75,000 − 90,000 = −15,000, a loss recognised in profit or loss (IAS 38, para. 113). Trap: comparing the gross price with the original cost, or forgetting the intermediary's fees. Rule to remember: result on disposal = net disposal proceeds − carrying amount (IAS 38, para. 113).","es":""},"common_error":{"fr":"","en":"Forgetting the fees and finding a loss of 10,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"240000","unit":"EUR"},{"id":"accumulated_amortisation","value":"150000","unit":"EUR"},{"id":"sale_price","value":"80000","unit":"EUR"},{"id":"disposal_costs","value":"5000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Acquisition cost of the licence","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated amortisation at the date of sale","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Agreed selling price","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Broker fees related to the sale","es":""},"value":"5000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount at the date of sale","es":""},"answer":90000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_ON_DISPOSAL","label":{"fr":"","en":"Loss on disposal","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT","meaning":{"fr":"","en":"Carrying amount at the date of sale","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Acquisition cost of the licence","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated amortisation at the date of sale","es":""},"value":150000,"unit":"EUR"}],"result":90000,"unit":"EUR"}],"rationale":{"fr":"","en":"result on disposal = net disposal proceeds − carrying amount (IAS 38, para. 113).","es":""},"references":["REF.IAS38.113"]}},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000410","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS","IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000801","tested_point":"VG.IAS38.000801","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §113","IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"The Sarvanel group, which applies the cost model, sells to a competitor a portfolio of subscriber contracts acquired for {cost}. At the date of disposal, accumulated amortisation amounts to {accumulated_amortisation} and accumulated impairment losses to {accumulated_impairment}. The selling price is {sale_price}; legal costs directly related to the disposal amount to {disposal_costs}. Calculate the carrying amount at the date of disposal and the result on disposal.","es":""},"explanation":{"fr":"","en":"Approach: under the cost model, carrying amount = cost − amortisation − impairment losses = 500,000 − 200,000 − 60,000 = 240,000 (IAS 38, para. 74); net proceeds = 260,000 − 12,000 = 248,000; gain = 248,000 − 240,000 = 8,000, in profit or loss and outside revenue (IAS 38, para. 113). Trap: leaving impairment losses out of the carrying amount, or not netting the legal fees against the price. Rule to remember: the carrying amount includes both accumulated balances. Effect: the portfolio leaves the balance sheet and the gain of 8,000 is added to profit or loss, outside revenue.","es":""},"common_error":{"fr":"","en":"Forgetting accumulated impairment losses and finding a loss of 52,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"500000","unit":"EUR"},{"id":"accumulated_amortisation","value":"200000","unit":"EUR"},{"id":"accumulated_impairment","value":"60000","unit":"EUR"},{"id":"sale_price","value":"260000","unit":"EUR"},{"id":"disposal_costs","value":"12000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the contract portfolio","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated amortisation","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated impairment losses","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Selling price","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Legal costs related to the disposal","es":""},"value":"12000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount at the date of disposal","es":""},"answer":240000,"tolerance":0,"unit":"EUR"},{"id":"GAIN_ON_DISPOSAL","label":{"fr":"","en":"Gain on disposal","es":""},"answer":8000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT","meaning":{"fr":"","en":"Carrying amount at the date of disposal","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the contract portfolio","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated amortisation","es":""},"value":200000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Accumulated impairment losses","es":""},"value":60000,"unit":"EUR"}],"result":240000,"unit":"EUR","rationale":{"fr":"","en":"Approach: under the cost model, carrying amount = cost − amortisation − impairment losses = 500,000 − 200,000 − 60,000 = 240,000 (IAS 38, para. 74)","es":""}},{"step":"GAIN_ON_DISPOSAL","meaning":{"fr":"","en":"Gain on disposal","es":""},"expression":"(a - b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Selling price","es":""},"value":260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Legal costs related to the disposal","es":""},"value":12000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Carrying amount at the date of disposal","es":""},"value":240000,"unit":"EUR"}],"result":8000,"unit":"EUR"}],"rationale":{"fr":"","en":"the carrying amount includes both accumulated balances. Effect: the portfolio leaves the balance sheet and the gain of 8,000 is added to profit or loss, outside revenue.","es":""},"references":["REF.IAS38.113","REF.IAS38.74"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000411","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS","IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000802","tested_point":"VG.IAS38.000802","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §113","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"Brenoval acquired planning software on 1 January 20X1 for {cost}, available for use on that date and amortised on a straight-line basis over {useful_life} years, with no residual value. It sells the software on 30 September 20X3 for {sale_price}, with no costs of disposal and without prior classification as held for sale (IFRS 5). Its reporting date is 31 December. Calculate the carrying amount at the date of disposal and the result on disposal.","es":""},"explanation":{"fr":"","en":"Approach: amortisation runs until the date of derecognition (IAS 38, para. 97). Annual charge 120,000 / 8 = 15,000; accumulated amount at 30 September 20X3: 2 × 15,000 + 15,000 × 9/12 = 41,250; carrying amount 120,000 − 41,250 = 78,750; result 70,000 − 78,750 = −8,750, a loss in profit or loss (IAS 38, para. 113). Trap: stopping amortisation at the last year-end instead of the date of sale. Rule to remember: amortise up to the date of disposal before calculating the result (IAS 38, para. 97). Effect: the 20X3 charge covers nine months and the loss of 8,750 is in profit or loss.","es":""},"common_error":{"fr":"","en":"Ignoring the amortisation for the nine months of 20X3 and finding a loss of 20,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"120000","unit":"EUR"},{"id":"useful_life","value":"8","unit":"YEARS"},{"id":"sale_price","value":"70000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Acquisition cost of the software","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"8","unit":"YEARS"},{"label":{"fr":"","en":"Selling price","es":""},"value":"70000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount at the date of disposal","es":""},"answer":78750,"tolerance":0,"unit":"EUR"},{"id":"LOSS_ON_DISPOSAL","label":{"fr":"","en":"Loss on disposal","es":""},"answer":8750,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT","meaning":{"fr":"","en":"Carrying amount at the date of disposal","es":""},"expression":"a - (2 * (a / b) + (a / b) * 9 / 12)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Acquisition cost of the software","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":8,"unit":"YEARS"}],"result":78750,"unit":"EUR"}],"rationale":{"fr":"","en":"amortise up to the date of disposal before calculating the result (IAS 38, para. 97). Effect: the 20X3 charge covers nine months and the loss of 8,750 is in profit or loss.","es":""},"references":["REF.IAS38.113","REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000412","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS","IAS38.AMORTISATION.METHOD"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000802","tested_point":"VG.IAS38.000802","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §113","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"The professional sports club Tormelis obtained an image broadcasting right on 1 January 20X2 for {cost}, usable immediately and amortised on a straight-line basis over {useful_life} years, with no residual value. On 30 June 20X4, it resells this right to a television channel for {sale_price} and bears {disposal_costs} of deed costs, without prior classification as held for sale (IFRS 5). Its financial year is the calendar year. Determine the carrying amount of the right on the day of the resale and the result arising.","es":""},"explanation":{"fr":"","en":"Approach: amortisation is recognised until derecognition (IAS 38, para. 97). Annual charge 90,000 / 5 = 18,000; accumulated amount at 30 June 20X4: 2 × 18,000 + 18,000 × 6/12 = 45,000; carrying amount 90,000 − 45,000 = 45,000; net proceeds 52,000 − 2,000 = 50,000; gain 50,000 − 45,000 = 5,000, in profit or loss outside revenue (IAS 38, para. 113). Trap: counting three full years (carrying amount of 36,000) or leaving out the deed costs. Rule to remember: stop the accumulated amortisation at the date of resale, then net proceeds − carrying amount. Effect: the gain of 5,000 is outside revenue.","es":""},"common_error":{"fr":"","en":"Not amortising the first half of 20X4 and finding a loss of 4,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"90000","unit":"EUR"},{"id":"useful_life","value":"5","unit":"YEARS"},{"id":"sale_price","value":"52000","unit":"EUR"},{"id":"disposal_costs","value":"2000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the broadcasting right","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"5","unit":"YEARS"},{"label":{"fr":"","en":"Resale price","es":""},"value":"52000","unit":"EUR"},{"label":{"fr":"","en":"Deed costs related to the resale","es":""},"value":"2000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount on the day of the resale","es":""},"answer":45000,"tolerance":0,"unit":"EUR"},{"id":"GAIN_ON_DISPOSAL","label":{"fr":"","en":"Gain on disposal","es":""},"answer":5000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT","meaning":{"fr":"","en":"Carrying amount on the day of the resale","es":""},"expression":"2 * (a / b) + (a / b) * 6 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the broadcasting right","es":""},"value":90000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":5,"unit":"YEARS"}],"result":45000,"unit":"EUR"},{"step":"GAIN_ON_DISPOSAL","meaning":{"fr":"","en":"Gain on disposal","es":""},"expression":"(a - b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Resale price","es":""},"value":52000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deed costs related to the resale","es":""},"value":2000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Carrying amount on the day of the resale","es":""},"value":45000,"unit":"EUR"}],"result":5000,"unit":"EUR"}],"rationale":{"fr":"","en":"stop the accumulated amortisation at the date of resale, then net proceeds − carrying amount. Effect: the gain of 5,000 is outside revenue.","es":""},"references":["REF.IAS38.113","REF.IAS38.97"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000416","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000416","tested_point":"QST.IAS38.000416","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §113"],"exercise":{"prompt":{"fr":"","en":"The Fenwald group, a sporting goods distributor, sells a secondary brand acquired for 300,000 and amortised by 120,000 at the date of sale. The price is 230,000; an investment bank charges 6,000 for the transaction. The chief executive points out that Fenwald regularly sells brands and proposes to include the selling price in revenue. Which treatment should be adopted?","es":""},"explanation":{"fr":"","en":"Carrying amount: 300,000 − 120,000 = 180,000. Net disposal proceeds: 230,000 − 6,000 = 224,000. Gain: 224,000 − 180,000 = 44,000. It is recognised in profit or loss on derecognition and is not classified as revenue, however frequent the disposals (IAS 38, para. 113).","es":""},"common_error":{"fr":"","en":"Including the sale price of a brand in revenue because the entity regularly sells brands.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Revenue of 230,000 and an expense of 180,000 for the carrying amount derecognised.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer treats the brand like an ordinary product: price in revenue and carrying amount as an expense. A gain on derecognition is not classified as revenue, however often disposals occur, and it is the net result of the disposal that is recognised (IAS 38, para. 113). Rule to remember: the result on disposal of a brand is presented net, outside revenue. Effect: Fenwald's revenue does not increase by 230,000.","es":""}},{"id":"B","text":{"fr":"","en":"A gain of 50,000 in profit or loss, not classified as revenue.","es":""},"correct":false,"feedback":{"fr":"","en":"The figure of 50,000 is the gross price minus the carrying amount (230,000 − 180,000): the 6,000 of the investment bank is forgotten. These costs, directly linked to the disposal, are deducted from the price to give net proceeds of 224,000, hence a gain of 44,000 (IAS 38, para. 113). Rule to remember: result on disposal = net proceeds (price less costs of disposal) − carrying amount.","es":""}},{"id":"C","text":{"fr":"","en":"A gain of 44,000 in profit or loss, not classified as revenue.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A gain of 44,000 recognised in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"The figure of 44,000 is right, but its counterpart is not: the gain on derecognition is recognised in profit or loss (IAS 38, para. 113), not in other comprehensive income. Rule to remember: the gain or loss on disposal goes through the profit or loss of the period. Effect: Fenwald's net profit increases by 44,000.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000417","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000417","tested_point":"QST.IAS38.000417","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §113"],"exercise":{"prompt":{"fr":"","en":"Myrcane sells a patent with a carrying amount of 60,000 at the date of disposal. The buyer pays 52,000 and Myrcane pays 3,000 of patent attorney fees directly related to the disposal. What result does Myrcane recognise?","es":""},"explanation":{"fr":"","en":"Net disposal proceeds: 52,000 − 3,000 = 49,000. Result: 49,000 − 60,000 = −11,000, a loss recognised in profit or loss on derecognition (IAS 38, para. 113). The advisory costs directly linked to the disposal reduce net proceeds: forgetting them gives a loss of 8,000. Rule to remember: result on disposal = net disposal proceeds − carrying amount (IAS 38, para. 113).","es":""},"common_error":{"fr":"","en":"Forgetting the advisory costs directly linked to the disposal when calculating net disposal proceeds.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A loss of 8,000 in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"A loss of 8,000 corresponds to 52,000 − 60,000: the 3,000 of advisory costs is forgotten. These costs, directly linked to the disposal, reduce net disposal proceeds, which are 49,000, hence a loss of 11,000 (IAS 38, para. 113). Rule to remember: deduct the costs of disposal from the price before comparing it with the carrying amount.","es":""}},{"id":"B","text":{"fr":"","en":"A loss of 11,000 in profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Revenue of 52,000 and an expense of 63,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The sale price of an intangible asset is not revenue: the gain or loss on derecognition is not classified as such (IAS 38, para. 113). It is the net result of the disposal, here a loss of 11,000, that is recognised in profit or loss. Rule to remember: do not gross up revenue and expenses; recognise the net result of the disposal.","es":""}},{"id":"D","text":{"fr":"","en":"No effect on profit or loss: the difference of 11,000 is charged directly to equity.","es":""},"correct":false,"feedback":{"fr":"","en":"The result of derecognition, here a loss of 11,000, is recognised in profit or loss (IAS 38, para. 113), not directly in equity. Charging equity would hide the loss from the performance of the period. Rule to remember: the gain or loss on disposal goes through profit or loss.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000418","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.UNUSED_ASSETS","IAS38.AMORTISATION.METHOD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000418","tested_point":"QST.IAS38.000418","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §117","IAS 38 §98"],"exercise":{"prompt":{"fr":"","en":"True or false? A software platform with a finite useful life, amortised on a straight-line basis, withdrawn from operations while management decides on its future, continues to be amortised.","es":""},"explanation":{"fr":"","en":"True. Approach: check whether either of the two exceptions in paragraph 117 applies, that is, full amortisation or classification as held for sale. Neither is described: the platform withdrawn from use stays amortised. With the straight-line method, the charge is unchanged; a usage-based method (units of production, for example) would instead reduce the charge when use falls (IAS 38, para. 98). Trap: believing that an unused asset is no longer amortised. Rule to remember: amortisation of a finite-life asset does not stop because the asset is unused, unless it is fully amortised or classified as held for sale (IAS 38, para. 117).","es":""},"common_error":{"fr":"","en":"Suspending amortisation of software withdrawn from use while management decides its future.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000419","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.UNUSED_ASSETS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000419","tested_point":"QST.IAS38.000419","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"unused-assets"},"references":["IAS 38 §117"],"exercise":{"prompt":{"fr":"","en":"True or false? A licence with a finite useful life, unused and already fully amortised, continues to generate an amortisation charge as long as it appears in the entity's records.","es":""},"explanation":{"fr":"","en":"False. Approach: amortisation of an unused asset continues in principle, but full amortisation is one of the two exceptions (IAS 38, para. 117). A fully amortised licence has no amount left to amortise: no further charge. Trap: reading « unused » as « still amortised as long as it is in the records ». Rule to remember: with no amount left to amortise, no charge is recognised, even if the asset is still in the records (IAS 38, para. 117).","es":""},"common_error":{"fr":"","en":"Continuing to recognise a charge on a fully amortised licence because it is still in the records.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000420","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.UNUSED_ASSETS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000420","tested_point":"QST.IAS38.000420","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"unused-assets"},"references":["IAS 38 §117"],"exercise":{"prompt":{"fr":"","en":"True or false? An intangible asset with a finite useful life, unused and classified as held for sale, continues to be amortised until it is actually sold.","es":""},"explanation":{"fr":"","en":"False. Approach: check whether classification as held for sale is among the exceptions to the continuation of amortisation of an unused asset: it is, together with full amortisation (IAS 38, para. 117). Amortisation therefore stops at that classification, without waiting for the actual sale. Trap: believing that amortisation runs until the sale. Rule to remember: classification as held for sale stops amortisation of a finite-life asset (IAS 38, para. 117).","es":""},"common_error":{"fr":"","en":"Continuing to amortise an asset classified as held for sale until it is actually sold.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000421","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.UNUSED_ASSETS","IAS38.AMORTISATION.METHOD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000421","tested_point":"QST.IAS38.000421","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §117","IAS 38 §98"],"exercise":{"prompt":{"fr":"","en":"Pellardi holds several intangible assets with finite useful lives that are amortised on a straight-line basis and not yet fully amortised. In which of these situations does amortisation of the asset cease?","es":""},"explanation":{"fr":"","en":"Amortisation of a finite-life asset continues when the asset is no longer used or is used less; it ceases only if the asset is fully amortised or classified as held for sale (IAS 38, para. 117). With the straight-line method used here, the charge remains unchanged; a usage-based method (units of production, for example) would, by contrast, reduce the charge when the asset is used less (IAS 38, para. 98).","es":""},"common_error":{"fr":"","en":"Reducing or suspending the straight-line charge of an asset because it is used less.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A mapping licence is unused while the information system is being redesigned.","es":""},"correct":false,"feedback":{"fr":"","en":"A licence unused during the redesign of the information system stays amortised: non-use is not among the situations that stop amortisation of a finite-life asset, namely full amortisation and classification as held for sale (IAS 38, para. 117). Rule to remember: temporary non-use does not suspend amortisation.","es":""}},{"id":"B","text":{"fr":"","en":"A distribution right is no longer exploited while a new business partner is sought.","es":""},"correct":false,"feedback":{"fr":"","en":"Waiting for a new partner does not change the accounting position of the right: it is neither fully amortised nor classified as held for sale, so its amortisation continues (IAS 38, para. 117). Rule to remember: amortisation depends on the status of the asset (fully amortised or held for sale), not on how it is being operated.","es":""}},{"id":"C","text":{"fr":"","en":"An unused software asset is classified as held for sale.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Use of a patent is halved following a fall in demand.","es":""},"correct":false,"feedback":{"fr":"","en":"With the straight-line method, use cut by half leaves the charge unchanged: lower use is not among the cases that stop amortisation (IAS 38, para. 117). A usage-based method, such as units of production, would on the other hand make the charge vary (IAS 38, para. 98). Rule to remember: under the straight-line method, less use does not mean less amortisation.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000422","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.UNUSED_ASSETS","IAS38.AMORTISATION.METHOD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000422","tested_point":"QST.IAS38.000422","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §117","IAS 38 §97"],"exercise":{"prompt":{"fr":"","en":"Corvenne acquired a licence for training content for 60,000, amortised on a straight-line basis over 10 years with no residual value. In 20X3, for lack of trainers, the licence is not used at all; it is not classified as held for sale and will be used again in 20X4. What amortisation charge does Corvenne recognise for 20X3?","es":""},"explanation":{"fr":"","en":"The licence being unused does not suspend amortisation (IAS 38, para. 117). The depreciable amount continues to be allocated systematically on a straight-line basis (IAS 38, para. 97): 60,000 / 10 = 6,000.","es":""},"common_error":{"fr":"","en":"Recognising no charge for the year in which the licence was not used.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"0, since the licence was not used.","es":""},"correct":false,"feedback":{"fr":"","en":"Recognising no charge because the licence was not used amounts to suspending amortisation, which paragraph 117 does not provide for: the licence is neither fully amortised nor classified as held for sale. The straight-line charge stays 60,000 / 10 = 6,000 (IAS 38, para. 97). Rule to remember: under the straight-line method, the annual charge does not depend on the use made during the year.","es":""}},{"id":"B","text":{"fr":"","en":"6,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"3,000, to reflect half the usual activity.","es":""},"correct":false,"feedback":{"fr":"","en":"A charge of 3,000 scales the amount to half the usual activity, as if amortisation followed use. That reasoning belongs to a usage-based method, not to the straight-line method used here, where the depreciable amount is allocated systematically: 60,000 / 10 = 6,000 (IAS 38, para. 97). Rule to remember: without a change of method, the straight-line charge is not adjusted for activity.","es":""}},{"id":"D","text":{"fr":"","en":"0 in 20X3, then 12,000 in 20X4 to catch up.","es":""},"correct":false,"feedback":{"fr":"","en":"Recognising 0 in 20X3 then 12,000 in 20X4 assumes amortisation is suspended and then caught up. But non-use does not suspend amortisation (IAS 38, para. 117): the depreciable amount is allocated systematically, that is 6,000 each year (IAS 38, para. 97). Rule to remember: amortisation of an unused asset is neither suspended nor caught up.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000423","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.UNUSED_ASSETS","IAS38.AMORTISATION.METHOD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000423","tested_point":"QST.IAS38.000423","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §117","IAS 38 §97","IAS 38 §98"],"exercise":{"prompt":{"fr":"","en":"A management controller asks why amortisation of a finite-life licence, amortised on a straight-line basis, continues although it remained unused for the whole year. Which answer is consistent with IAS 38?","es":""},"explanation":{"fr":"","en":"Amortisation allocates the depreciable amount systematically over the useful life (IAS 38, para. 97). It does not cease when the asset is no longer used, unless the asset is fully amortised or classified as held for sale (IAS 38, para. 117): idleness is not a stopping case. With the straight-line method used here, the charge remains unchanged; a usage-based method (units of production, for example) would, by contrast, reduce the charge when the asset is used less (IAS 38, para. 98).","es":""},"common_error":{"fr":"","en":"Equating amortisation with a decline in market value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The depreciable amount is allocated systematically over the useful life, and idleness is not one of the cases in which amortisation stops.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Amortisation measures the loss in market value of the licence during the year.","es":""},"correct":false,"feedback":{"fr":"","en":"Amortisation does not measure a loss of market value: it allocates the depreciable amount systematically over the useful life (IAS 38, para. 97). The market value of the licence can move without changing that pattern. Rule to remember: to amortise is to allocate a cost, not to estimate a market value.","es":""}},{"id":"C","text":{"fr":"","en":"Amortisation is a tax charge that must be recognised every year, whatever the use.","es":""},"correct":false,"feedback":{"fr":"","en":"Amortisation under IAS 38 is an accounting charge that allocates the depreciable amount over the useful life (IAS 38, para. 97); it does not depend on tax. It continues for an unused licence because non-use does not stop amortisation (IAS 38, para. 117). Rule to remember: amortisation follows the asset's pattern of use, not the tax rule.","es":""}},{"id":"D","text":{"fr":"","en":"Amortisation continues only out of prudence, and the entity may choose to suspend it.","es":""},"correct":false,"feedback":{"fr":"","en":"It is not a matter of prudence: amortisation of a finite-life asset stops in two cases, full amortisation and classification as held for sale (IAS 38, para. 117), not by decision of the entity. Rule to remember: the entity does not suspend amortisation by choice; the standard sets the cases where it stops.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000424","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.UNUSED_ASSETS","IAS38.DERECOGNITION.TRIGGERS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000424","tested_point":"QST.IAS38.000424","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §117","IAS 38 §112"],"exercise":{"prompt":{"fr":"","en":"Lisandre has stopped using a finite-life manufacturing patent after a production line was shut down. It is negotiating to license the patent to a foreign manufacturer from next year. The patent is not classified as held for sale. Which treatment should be adopted at the year-end?","es":""},"explanation":{"fr":"","en":"Future economic benefits are still expected from licensing the patent: it is not derecognised (IAS 38, para. 112). As it has a finite life, is not fully amortised and is not classified as held for sale, its amortisation continues despite its idleness (IAS 38, para. 117).","es":""},"common_error":{"fr":"","en":"Derecognising a finite-life patent because it is no longer used in production, while a licence is being negotiated.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Derecognise the patent, since the entity no longer uses it.","es":""},"correct":false,"feedback":{"fr":"","en":"The patent is no longer used in production, but the licence being negotiated will bring royalties: a future benefit is still expected. The case of no expected benefit from use or disposal is therefore not met (IAS 38, para. 112). Rule to remember: ceasing to use an asset does not derecognise it while another benefit is expected.","es":""}},{"id":"B","text":{"fr":"","en":"Keep the patent as an asset and suspend amortisation until the licence starts.","es":""},"correct":false,"feedback":{"fr":"","en":"Suspending amortisation until the licence starts is not provided for: a finite-life asset that is not fully amortised and not classified as held for sale stays amortised despite non-use (IAS 38, para. 117). Rule to remember: waiting for a future contract does not suspend amortisation.","es":""}},{"id":"C","text":{"fr":"","en":"Reclassify the patent as an indefinite-life asset in order to stop amortising it.","es":""},"correct":false,"feedback":{"fr":"","en":"The patent has a finite life and non-use does not make it indefinite: reclassifying its life to stop amortising it is not justified. It stays amortised, as it is neither fully amortised nor classified as held for sale (IAS 38, para. 117). Rule to remember: the useful life is not changed to avoid amortisation.","es":""}},{"id":"D","text":{"fr":"","en":"Keep the patent as an asset and continue amortising it.","es":""},"correct":true}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000425","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.CLASS_INFORMATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000425","tested_point":"QST.IAS38.000425","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-by-class"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"For each class of intangible assets, IAS 38 requires the information to be presented by distinguishing two subsets of assets. Which ones?","es":""},"explanation":{"fr":"","en":"The information is provided for each class of intangible assets, distinguishing internally generated assets from other intangible assets (IAS 38, para. 118). The amortisation method, the currency or a value threshold are not this distinguishing criterion: the amortisation method is an item to disclose, not the basis of the split. Rule to remember: within each class, internally generated assets are separated from the others (IAS 38, para. 118).","es":""},"common_error":{"fr":"","en":"Grouping internally generated and acquired assets in one column.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Assets amortised on a straight-line basis and those amortised using another method.","es":""},"correct":false,"feedback":{"fr":"","en":"The amortisation method is an item to disclose for each class, not the criterion that separates the two subsets of assets (IAS 38, para. 118). The distinction relates to the origin of the asset: internally generated or not. Rule to remember: amortisation methods are described by class; assets are separated by origin.","es":""}},{"id":"B","text":{"fr":"","en":"Internally generated assets and other assets.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Assets denominated in local currency and those denominated in foreign currencies.","es":""},"correct":false,"feedback":{"fr":"","en":"The currency of denomination is not the criterion used by IAS 38 to split the information of a class: the distinction relates to the origin of the asset, internally generated or not (IAS 38, para. 118). Rule to remember: it is the origin of the asset, not its currency, that separates the two subsets.","es":""}},{"id":"D","text":{"fr":"","en":"Assets whose value exceeds a materiality threshold and low-value assets.","es":""},"correct":false,"feedback":{"fr":"","en":"A value or materiality threshold is not the distinguishing criterion provided for: for each class, IAS 38 separates internally generated assets from other intangible assets (IAS 38, para. 118). Rule to remember: the split of information follows the origin of the asset, not its amount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000426","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.CLASS_INFORMATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000426","tested_point":"QST.IAS38.000426","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-by-class"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"Nérolys presents a Software class made up of assets with finite useful lives. Which information on the amortisation of this class must appear in the notes?","es":""},"explanation":{"fr":"","en":"For each class, the entity discloses in particular whether useful lives are finite or indefinite and, for finite-life assets, the useful lives or amortisation rates used and the amortisation methods (IAS 38, para. 118).","es":""},"common_error":{"fr":"","en":"Thinking the note must contain a detailed amortisation schedule asset by asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The detailed amortisation schedule, software by software, for the next five years.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 38 does not ask for a forecast amortisation schedule asset by asset for the next five years: it asks, for each class, for the useful lives or amortisation rates and the amortisation methods (IAS 38, para. 118). Rule to remember: the disclosure covers the amortisation parameters by class, not a detailed schedule.","es":""}},{"id":"B","text":{"fr":"","en":"The estimated resale price of each software asset at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"An estimated resale price for each software item is not among the class-level disclosures in paragraph 118: for finite-life assets, the note gives the useful lives or amortisation rates and the amortisation methods (IAS 38, para. 118). Rule to remember: the note describes how the asset is amortised, not the price at which it could be resold.","es":""}},{"id":"C","text":{"fr":"","en":"The name of the publisher of each software asset and the date the contracts were signed.","es":""},"correct":false,"feedback":{"fr":"","en":"The publisher's name and the date of signing the contracts are contractual data: they are not part of the amortisation disclosure for a class (IAS 38, para. 118). For finite-life assets, the note gives useful lives or rates and amortisation methods. Rule to remember: the amortisation disclosure describes the life and the method, not the contract.","es":""}},{"id":"D","text":{"fr":"","en":"The useful lives or amortisation rates used, and the amortisation methods.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000427","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.CLASS_INFORMATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000427","tested_point":"QST.IAS38.000427","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-by-class"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"The Altabrin group presents its expenses by function (cost of sales, selling expenses, administrative expenses). Amortisation of its intangible assets is spread across several of these lines. Which information must it give on this point for each class?","es":""},"explanation":{"fr":"","en":"For each class, the entity discloses the line items of the statement of comprehensive income in which amortisation of intangible assets is included (IAS 38, para. 118). This information is especially useful when amortisation is spread across several functions.","es":""},"common_error":{"fr":"","en":"Believing that presenting expenses by function removes the need to state the line items that include amortisation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: the analysis by function is enough to inform the reader.","es":""},"correct":false,"feedback":{"fr":"","en":"Presentation by function does not remove the need to say where amortisation is included: spread across cost of sales, selling expenses and administrative expenses, it cannot be read without disclosure. IAS 38 asks, for each class, for the line items of the statement of comprehensive income that include amortisation (IAS 38, para. 118). Rule to remember: even with a presentation by function, state the line items that contain amortisation.","es":""}},{"id":"B","text":{"fr":"","en":"The line items of the statement of comprehensive income in which amortisation is included.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only the total amortisation charge, without stating the line items concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"The total charge appears in the reconciliation of carrying amounts, but it does not say in which lines of the statement of comprehensive income amortisation is included. IAS 38 also asks for these line items for each class (IAS 38, para. 118). Rule to remember: the amount of the charge and the line items that include it are two separate disclosures. Effect: without the line items, the reader cannot link amortisation to the functional lines.","es":""}},{"id":"D","text":{"fr":"","en":"An alternative presentation of expenses by nature replacing the statement of comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not ask for the statement of comprehensive income to be replaced by a presentation by nature: it asks, for each class, for the line items in which amortisation is included (IAS 38, para. 118). Rule to remember: this disclosure complements the presentation by function without replacing it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000428","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.CLASS_INFORMATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000428","tested_point":"QST.IAS38.000428","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-by-class"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"Velmorat is preparing the note on its Operating licences class, made up of finite-life assets measured under the cost model. Which of these items must it include?","es":""},"explanation":{"fr":"","en":"For each class, the entity discloses in particular the amortisation methods of finite-life assets, the line items of the statement of comprehensive income that include amortisation and the reconciliation of the carrying amounts at the beginning and end of the period (IAS 38, para. 118). The fair value of assets measured at cost and a forecast budget are not in this list.","es":""},"common_error":{"fr":"","en":"Adding forward-looking information (a budget) to the note instead of information on the year.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fair value of each licence at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value of each licence is not among the class-level disclosures in paragraph 118, which cite in particular the amortisation methods, the line items of the statement of comprehensive income and the reconciliation of carrying amounts (IAS 38, para. 118). Rule to remember: the class note describes amortisation and reconciles carrying amounts.","es":""}},{"id":"B","text":{"fr":"","en":"The line items of the statement of comprehensive income in which amortisation is included.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The reconciliation of the carrying amount at the beginning and end of the period.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The budget for licence acquisitions planned for the following year.","es":""},"correct":false,"feedback":{"fr":"","en":"A budget for next year's acquisitions is forward-looking data; it is not among the disclosures paragraph 118 asks for by class (amortisation methods, line items of the statement of comprehensive income, reconciliation) (IAS 38, para. 118). Rule to remember: the note describes the past year and the assets in place, not budgets.","es":""}},{"id":"E","text":{"fr":"","en":"The amortisation methods used.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000429","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.CLASS_INFORMATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000429","tested_point":"QST.IAS38.000429","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-by-class"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"You are reviewing the disclosure checklist for the intangible asset notes of the Tessarine group. Which of these presentation choices comply with IAS 38?","es":""},"explanation":{"fr":"","en":"The information is given by class, distinguishing internally generated assets from others; it includes useful lives or rates, amortisation methods, and the gross carrying amount and accumulated amounts at the beginning and end of the period (IAS 38, para. 118). A single total does not meet the class-by-class requirement, and the amortisation method must be disclosed even if only one is used.","es":""},"common_error":{"fr":"","en":"Replacing class-level disclosure with one total to lighten the note.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"One table per class, with separate columns for internally generated assets and for other assets.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A single total for all intangible assets, with no breakdown by class, to keep the note short.","es":""},"correct":false,"feedback":{"fr":"","en":"A single total for all intangible assets does not meet the requirement: the information is provided for each class, distinguishing internally generated assets from others (IAS 38, para. 118). Lightening the note does not justify dropping that split. Rule to remember: the information is presented by class, not as one total. Effect: the reader loses the view of amortisation and carrying amounts by type of asset.","es":""}},{"id":"C","text":{"fr":"","en":"Disclosing amortisation rates rather than useful lives for finite-life assets.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Omitting the amortisation methods on the grounds that all assets are amortised on a straight-line basis.","es":""},"correct":false,"feedback":{"fr":"","en":"The amortisation method must be disclosed for each class of finite-life assets, even when all assets use the straight-line method (IAS 38, para. 118). A single method is still information: it tells the reader how amortisation is calculated. Rule to remember: the amortisation method is disclosed even if it is the same for all.","es":""}},{"id":"E","text":{"fr":"","en":"Presenting the gross carrying amount and accumulated amortisation and impairment losses at the beginning and end of the period.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000430","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.CLASS_INFORMATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000430","tested_point":"QST.IAS38.000430","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-by-class"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"The Rights and brands class of the Ostrévie group includes brands assessed as having indefinite useful lives and operating rights with finite lives. How must the note for this class deal with useful lives?","es":""},"explanation":{"fr":"","en":"For each class, the entity discloses whether useful lives are finite or indefinite and, for finite-life assets, the useful lives or amortisation rates used and the amortisation methods (IAS 38, para. 118).","es":""},"common_error":{"fr":"","en":"Saying nothing about lives in a class that mixes indefinite-life brands and finite-life rights.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It says nothing about useful lives, since the class mixes both situations.","es":""},"correct":false,"feedback":{"fr":"","en":"A mixed class does not remove the need to disclose lives: the note says whether useful lives are finite or indefinite (IAS 38, para. 118). Here, the brands with an indefinite life and the rights with a finite life must therefore be identified as such. Rule to remember: the nature of the life, finite or indefinite, is stated for each class, even a mixed one.","es":""}},{"id":"B","text":{"fr":"","en":"It assigns a conventional useful life to all brands to make the presentation uniform.","es":""},"correct":false,"feedback":{"fr":"","en":"Assigning a conventional life to the brands to unify the presentation distorts the information: the useful life results from the entity's assessment, and the note says whether it is finite or indefinite (IAS 38, para. 118). The brands judged to have an indefinite life are presented as such. Rule to remember: the note reports the lives assessed; it does not invent lives to harmonise.","es":""}},{"id":"C","text":{"fr":"","en":"It states whether lives are finite or indefinite and, for finite-life rights, the lives or rates and the amortisation methods.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It states only the amortisation methods, without specifying which assets have finite or indefinite lives.","es":""},"correct":false,"feedback":{"fr":"","en":"Stating the amortisation methods without saying whether lives are finite or indefinite leaves out an item: the note specifies whether useful lives are finite or indefinite, so the reader knows which assets are amortised (IAS 38, para. 118). Rule to remember: first the nature of the lives, then lives or rates and methods for finite-life assets.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000431","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.CLASS_INFORMATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000431","tested_point":"QST.IAS38.000431","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-by-class"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"In the Vérandel group's note, the Technologies class combines in a single column capitalised development costs from internal projects and patents bought from third parties. Lives, methods, gross carrying amounts and the reconciliation are given for this single column. What is the main shortcoming under IAS 38?","es":""},"explanation":{"fr":"","en":"Class-by-class information is given distinguishing between internally generated intangible assets and other intangible assets (IAS 38, para. 118). The single column mixes internally generated development costs and acquired patents: this distinction is missing.","es":""},"common_error":{"fr":"","en":"Grouping capitalised development costs and acquired patents in a single column.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Development costs should have been excluded from the note, because they are not intangible assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Capitalised development costs are indeed intangible assets: they belong in the note on those assets. The gap is elsewhere: the single column does not distinguish internally generated assets from other intangible assets (IAS 38, para. 118). Rule to remember: capitalised development stays in the note, in the internally generated part.","es":""}},{"id":"B","text":{"fr":"","en":"Internally generated assets are not distinguished from the other intangible assets of the class.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The purchased patents should appear in the property, plant and equipment note.","es":""},"correct":false,"feedback":{"fr":"","en":"A patent bought from a third party is an intangible asset, not a tangible one: it stays in the note on intangible assets, as an asset that is not internally generated (IAS 38, para. 118). Rule to remember: acquired patents and internal development appear in the same note, but are distinguished by origin.","es":""}},{"id":"D","text":{"fr":"","en":"The reconciliation should have been presented for the group as a whole only, with no breakdown by class.","es":""},"correct":false,"feedback":{"fr":"","en":"The reconciliation is already provided for the class, which is the expected level: IAS 38 asks for it by class, not for the group as a whole (IAS 38, para. 118). The defect lies in the column, which mixes two origins of assets. Rule to remember: the reconciliation is done by class, distinguishing internally generated assets from others. Effect: the reader cannot see the share of assets created by the entity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000432","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000432","tested_point":"QST.IAS38.000432","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-reconciliation"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"Which of these items is NOT a movement in the reconciliation between the opening and closing carrying amounts of a class of intangible assets?","es":""},"explanation":{"fr":"","en":"The reconciliation shows additions, assets classified as held for sale and disposals, revaluations, impairment losses and reversals, amortisation, net exchange differences and other changes (IAS 38, para. 118). Research expenditure recognised as an expense never entered the assets: it does not change the carrying amount.","es":""},"common_error":{"fr":"","en":"Including in the reconciliation expenditure recognised as an expense that was not recorded as an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Net exchange differences arising on translation of a foreign subsidiary's financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"Net exchange differences, for example from translating the financial statements of a foreign subsidiary, change the carrying amount of the assets: they are one of the lines of the reconciliation (IAS 38, para. 118). Rule to remember: net exchange differences appear in the reconciliation of carrying amounts.","es":""}},{"id":"B","text":{"fr":"","en":"Impairment losses recognised in profit or loss during the period.","es":""},"correct":false,"feedback":{"fr":"","en":"Impairment losses recognised in profit or loss reduce the carrying amount of the class: they are a line of the reconciliation, together with their reversals (IAS 38, para. 118). Rule to remember: impairment losses and reversals are among the lines of the reconciliation.","es":""}},{"id":"C","text":{"fr":"","en":"Assets classified as held for sale.","es":""},"correct":false,"feedback":{"fr":"","en":"Classifying assets as held for sale takes those assets out of the class: the reconciliation shows it, along with disposals (IAS 38, para. 118). Rule to remember: assets held for sale and disposals are lines of the reconciliation.","es":""}},{"id":"D","text":{"fr":"","en":"Research expenditure for the period, recognised as an expense.","es":""},"correct":true}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000433","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RECONCILIATION","IAS38.DERECOGNITION.GAIN_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000433","tested_point":"QST.IAS38.000433","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §118","IAS 38 §113"],"exercise":{"prompt":{"fr":"","en":"During the year, Brévaline sold for 55,000 a licence whose carrying amount was 40,000 at the date of sale, giving a gain of 15,000. Which amount must appear on the disposals line in the reconciliation of carrying amounts of the Licences class?","es":""},"explanation":{"fr":"","en":"The reconciliation explains the movement from the opening to the closing carrying amount and shows, among other things, disposals (IAS 38, para. 118). The licence leaves the class at its carrying amount of 40,000. The gain of 15,000 (55,000 − 40,000) is recognised in profit or loss (IAS 38, para. 113); it is not a movement in carrying amount.","es":""},"common_error":{"fr":"","en":"Showing the disposal at the sale price in the reconciliation instead of its carrying amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"55,000, the selling price.","es":""},"correct":false,"feedback":{"fr":"","en":"The sale price is not a carrying amount of the class: the reconciliation starts from the opening carrying amount and ends at the closing one, and shows the disposal at the carrying amount of the asset sold (IAS 38, para. 118). Here, 40,000 leaves the class. Rule to remember: in the reconciliation, a disposal is shown at its carrying amount, not at its sale price.","es":""}},{"id":"B","text":{"fr":"","en":"40,000, the carrying amount derecognised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"15,000, the gain on disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"The gain of 15,000 (55,000 − 40,000) is an item of profit or loss for the period (IAS 38, para. 113), not a movement in the carrying amount of the class: the reconciliation shows the disposal at 40,000 (IAS 38, para. 118). Rule to remember: the gain goes to profit or loss, the carrying amount disposed of goes to the reconciliation. Effect: the class decreases by 40,000 while profit or loss increases by 15,000.","es":""}},{"id":"D","text":{"fr":"","en":"No amount: the disposal only appears in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The disposal does appear in the reconciliation: disposals are one of its lines (IAS 38, para. 118), at the carrying amount of the asset sold, that is 40,000. The gain is recognised in profit or loss (IAS 38, para. 113). Rule to remember: the reconciliation shows disposals; profit or loss shows the gain on disposal.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000434","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RECONCILIATION"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000804","tested_point":"VG.IAS38.000804","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-reconciliation"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"Dorvane's Software class has an opening carrying amount of {opening_carrying_amount}. During the year: additions of {additions}, amortisation of {amortisation}, impairment losses of {impairment_losses} and disposals at a carrying amount of {disposals}. What closing carrying amount must be shown in the reconciliation?","es":""},"explanation":{"fr":"","en":"Approach: start from the opening carrying amount, add the additions and deduct the disposals (at carrying amount), amortisation and impairment losses: 500,000 + 120,000 − 85,000 − 15,000 − 30,000 = 490,000 (IAS 38, para. 118). Trap: deducting disposals at their sale price, or forgetting a movement, which gives a closing figure different from the real carrying amount. Rule to remember: closing = opening + additions − disposals − amortisation − impairment losses (IAS 38, para. 118).","es":""},"common_error":{"fr":"","en":"Forgetting impairment losses and finding 505,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_carrying_amount","value":"500000","unit":"EUR"},{"id":"additions","value":"120000","unit":"EUR"},{"id":"amortisation","value":"85000","unit":"EUR"},{"id":"impairment_losses","value":"15000","unit":"EUR"},{"id":"disposals","value":"30000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening carrying amount","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Additions for the period","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Amortisation for the period","es":""},"value":"85000","unit":"EUR"},{"label":{"fr":"","en":"Impairment losses for the period","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Disposals (carrying amount)","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"CLOSING_CARRYING_AMOUNT","label":{"fr":"","en":"Closing carrying amount","es":""},"answer":490000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CLOSING_CARRYING_AMOUNT","meaning":{"fr":"","en":"Closing carrying amount","es":""},"expression":"a + b - c - d - e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening carrying amount","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Additions for the period","es":""},"value":120000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Amortisation for the period","es":""},"value":85000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Impairment losses for the period","es":""},"value":15000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Disposals (carrying amount)","es":""},"value":30000,"unit":"EUR"}],"result":490000,"unit":"EUR","rationale":{"fr":"","en":"Approach: start from the opening carrying amount, add the additions and deduct the disposals (at carrying amount), amortisation and impairment losses: 500,000 + 120,000 − 85,000 − 15,000 − 30,000 = 490,000 (IAS 38, para. 118).","es":""}}],"rationale":{"fr":"","en":"closing = opening + additions − disposals − amortisation − impairment losses (IAS 38, para. 118).","es":""},"references":["REF.IAS38.118"]}},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000435","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RECONCILIATION"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000804","tested_point":"VG.IAS38.000804","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-reconciliation"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"The international Calvérac group is preparing the reconciliation for its Technologies class. Opening carrying amount: {opening_carrying_amount}. Movements for the year: separate acquisitions {separate_acquisitions}, capitalised internal development {internal_development}, additions through business combinations {business_combinations}, assets classified as held for sale {held_for_sale}, amortisation {amortisation}, impairment losses {impairment_losses}, reversals of impairment losses {impairment_reversals} and positive net exchange differences {exchange_differences}. Calculate the closing carrying amount.","es":""},"explanation":{"fr":"","en":"Approach: additions (separate acquisitions, internal development, business combinations), impairment reversals and positive net exchange differences are added; assets classified as held for sale, amortisation and impairment losses are deducted. Calculation: 820,000 + 60,000 + 95,000 + 140,000 − 70,000 − 110,000 − 25,000 + 10,000 + 12,000 = 932,000 (IAS 38, para. 118). Trap: giving reversals or assets held for sale the wrong sign. Rule to remember: each line of the reconciliation has its own meaning and source (IAS 38, para. 118). Effect: 932,000 is the closing carrying amount of the class in the notes.","es":""},"common_error":{"fr":"","en":"Deducting reversals of impairment losses and finding 912,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_carrying_amount","value":"820000","unit":"EUR"},{"id":"separate_acquisitions","value":"60000","unit":"EUR"},{"id":"internal_development","value":"95000","unit":"EUR"},{"id":"business_combinations","value":"140000","unit":"EUR"},{"id":"held_for_sale","value":"70000","unit":"EUR"},{"id":"amortisation","value":"110000","unit":"EUR"},{"id":"impairment_losses","value":"25000","unit":"EUR"},{"id":"impairment_reversals","value":"10000","unit":"EUR"},{"id":"exchange_differences","value":"12000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening carrying amount","es":""},"value":"820000","unit":"EUR"},{"label":{"fr":"","en":"Additions acquired separately","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Additions from internal development","es":""},"value":"95000","unit":"EUR"},{"label":{"fr":"","en":"Additions through business combinations","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"Assets classified as held for sale","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Amortisation for the period","es":""},"value":"110000","unit":"EUR"},{"label":{"fr":"","en":"Impairment losses for the period","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Reversals of impairment losses","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Net exchange differences (positive)","es":""},"value":"12000","unit":"EUR"}],"steps":[{"id":"CLOSING_CARRYING_AMOUNT","label":{"fr":"","en":"Closing carrying amount","es":""},"answer":932000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CLOSING_CARRYING_AMOUNT","meaning":{"fr":"","en":"Closing carrying amount","es":""},"expression":"a + b + c + d - e - f - g + h + i","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening carrying amount","es":""},"value":820000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Additions acquired separately","es":""},"value":60000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Additions from internal development","es":""},"value":95000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Additions through business combinations","es":""},"value":140000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Assets classified as held for sale","es":""},"value":70000,"unit":"EUR"},{"symbol":"f","meaning":{"fr":"","en":"Amortisation for the period","es":""},"value":110000,"unit":"EUR"},{"symbol":"g","meaning":{"fr":"","en":"Impairment losses for the period","es":""},"value":25000,"unit":"EUR"},{"symbol":"h","meaning":{"fr":"","en":"Reversals of impairment losses","es":""},"value":10000,"unit":"EUR"},{"symbol":"i","meaning":{"fr":"","en":"Net exchange differences (positive)","es":""},"value":12000,"unit":"EUR"}],"result":932000,"unit":"EUR"}],"rationale":{"fr":"","en":"each line of the reconciliation has its own meaning and source (IAS 38, para. 118). Effect: 932,000 is the closing carrying amount of the class in the notes.","es":""},"references":["REF.IAS38.118"]}},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000436","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RECONCILIATION"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000805","tested_point":"VG.IAS38.000805","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-reconciliation"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"Pirmond's intern prepared the reconciliation for the Patents class but forgot the line for amortisation for the period. Data: opening carrying amount {opening_carrying_amount}, additions {additions}, disposals at a carrying amount of {disposals}, closing carrying amount per the trial balance {closing_carrying_amount}. No other movement occurred. Which amortisation amount must appear in the reconciliation?","es":""},"explanation":{"fr":"","en":"Approach: isolate amortisation in the reconciliation equation: amortisation = opening + additions − disposals − closing = 300,000 + 80,000 − 20,000 − 310,000 = 50,000. Check: 300,000 + 80,000 − 20,000 − 50,000 = 310,000, the closing carrying amount in the ledger (IAS 38, para. 118). Trap: adding the disposals or ignoring the additions. Rule to remember: the reconciliation must end at the closing carrying amount (IAS 38, para. 118). Effect: the amortisation of 50,000 appears on its own line of the Patents reconciliation.","es":""},"common_error":{"fr":"","en":"Adding disposals instead of deducting them and finding 90,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_carrying_amount","value":"300000","unit":"EUR"},{"id":"additions","value":"80000","unit":"EUR"},{"id":"disposals","value":"20000","unit":"EUR"},{"id":"closing_carrying_amount","value":"310000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening carrying amount","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Additions for the period","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Disposals (carrying amount)","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Closing carrying amount (trial balance)","es":""},"value":"310000","unit":"EUR"}],"steps":[{"id":"AMORTISATION","label":{"fr":"","en":"Amortisation for the period","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"AMORTISATION","meaning":{"fr":"","en":"Amortisation for the period","es":""},"expression":"a + b - c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening carrying amount","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Additions for the period","es":""},"value":80000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Disposals (carrying amount)","es":""},"value":20000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Closing carrying amount (trial balance)","es":""},"value":310000,"unit":"EUR"}],"result":50000,"unit":"EUR"}],"rationale":{"fr":"","en":"the reconciliation must end at the closing carrying amount (IAS 38, para. 118). Effect: the amortisation of 50,000 appears on its own line of the Patents reconciliation.","es":""},"references":["REF.IAS38.118"]}},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000437","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RECONCILIATION"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000805","tested_point":"VG.IAS38.000805","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-reconciliation"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"For its Brands and licences class, the Brazilian subsidiary of the Ystrane group reports an opening carrying amount of {opening_carrying_amount} and a closing carrying amount of {closing_carrying_amount}. The known movements are amortisation of {amortisation}, impairment losses of {impairment_losses} and negative net exchange differences of {exchange_differences}. There were no disposals and no revaluations. Which amount of additions must be shown for the reconciliation to balance?","es":""},"explanation":{"fr":"","en":"Approach: isolate additions in the reconciliation equation: additions = closing − opening + amortisation + impairment losses + negative exchange differences = 1,180,000 − 1,250,000 + 175,000 + 40,000 + 15,000 = 160,000. Check: 1,250,000 + 160,000 − 175,000 − 40,000 − 15,000 = 1,180,000 (IAS 38, para. 118). Trap: treating negative exchange differences as an increase. Rule to remember: negative movements (amortisation, impairment losses, negative exchange differences) are deducted in the reconciliation (IAS 38, para. 118).","es":""},"common_error":{"fr":"","en":"Treating the exchange differences as positive and finding 130,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_carrying_amount","value":"1250000","unit":"EUR"},{"id":"amortisation","value":"175000","unit":"EUR"},{"id":"impairment_losses","value":"40000","unit":"EUR"},{"id":"exchange_differences","value":"15000","unit":"EUR"},{"id":"closing_carrying_amount","value":"1180000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening carrying amount","es":""},"value":"1250000","unit":"EUR"},{"label":{"fr":"","en":"Amortisation for the period","es":""},"value":"175000","unit":"EUR"},{"label":{"fr":"","en":"Impairment losses for the period","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Net exchange differences (negative)","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Closing carrying amount","es":""},"value":"1180000","unit":"EUR"}],"steps":[{"id":"ADDITIONS","label":{"fr":"","en":"Additions for the period","es":""},"answer":160000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ADDITIONS","meaning":{"fr":"","en":"Additions for the period","es":""},"expression":"a - b + c + d + e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing carrying amount","es":""},"value":1180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening carrying amount","es":""},"value":1250000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Amortisation for the period","es":""},"value":175000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Impairment losses for the period","es":""},"value":40000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Net exchange differences (negative)","es":""},"value":15000,"unit":"EUR"}],"result":160000,"unit":"EUR"}],"rationale":{"fr":"","en":"negative movements (amortisation, impairment losses, negative exchange differences) are deducted in the reconciliation (IAS 38, para. 118).","es":""},"references":["REF.IAS38.118"]}},"scope":"OPTIONAL_STUDENT","reserve":true},{"key":"QST.IAS38.000438","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000438","tested_point":"QST.IAS38.000438","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-reconciliation"},"references":["IAS 38 §118"],"exercise":{"prompt":{"fr":"","en":"Faulmère applies the revaluation model to its Transferable taxi licences class. During the year, the carrying amount of the class increased by 30,000 as a result of a revaluation recognised in other comprehensive income. How is this movement dealt with in the reconciliation of carrying amounts?","es":""},"explanation":{"fr":"","en":"The reconciliation of carrying amounts shows, among other things, increases and decreases resulting from revaluations (IAS 38, para. 118). An increase of 30,000 in the carrying amount, even when recognised in other comprehensive income, is therefore a movement to be shown.","es":""},"common_error":{"fr":"","en":"Excluding a revaluation from the reconciliation because it is recognised in other comprehensive income.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is not included, because it did not go through profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The fact that the movement does not go through profit or loss does not exclude it from the reconciliation: the reconciliation covers the carrying amount of the class, and increases and decreases from revaluations are one of its lines (IAS 38, para. 118). Rule to remember: a revaluation increase recognised in other comprehensive income appears in the reconciliation. Effect: without that line, the closing carrying amount cannot be explained.","es":""}},{"id":"B","text":{"fr":"","en":"It is included as an increase resulting from revaluation.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It appears only in the statement of changes in equity.","es":""},"correct":false,"feedback":{"fr":"","en":"The revaluation surplus also appears in equity, but that does not remove the need to show the revaluation in the reconciliation of the class's carrying amounts (IAS 38, para. 118). Rule to remember: the same movement can appear in several places, and the note on intangible assets must show it. Effect: the 30,000 appears in equity and in the reconciliation.","es":""}},{"id":"D","text":{"fr":"","en":"It is offset against amortisation for the period and only the net amount is shown.","es":""},"correct":false,"feedback":{"fr":"","en":"Netting the revaluation against the period's amortisation would hide two movements of different nature: revaluations and amortisation are separate lines of the reconciliation (IAS 38, para. 118). Rule to remember: each movement in the reconciliation is shown separately, without netting.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000439","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.INDEFINITE_LIFE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000439","tested_point":"QST.IAS38.000439","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-specific-assets"},"references":["IAS 38 §122"],"exercise":{"prompt":{"fr":"","en":"The Ravenhal group's draft note states, for an acquired recipe catalogue assessed as having an indefinite useful life: carrying amount of 1,400,000; asset not amortised. What is missing under IAS 38?","es":""},"explanation":{"fr":"","en":"For an asset with an indefinite useful life, the entity discloses its carrying amount and the reasons supporting the assessment of an indefinite life, describing the factors that played a significant role in that assessment (IAS 38, para. 122). The carrying amount is already given; the justification is missing.","es":""},"common_error":{"fr":"","en":"Thinking that the carrying amount and the absence of amortisation are enough to inform the reader about an indefinite-life asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amortisation period that would have been used if the life had been assessed as finite.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not ask for a hypothetical amortisation period for an indefinite-life asset: the missing information is the justification for the indefinite life (IAS 38, para. 122). Rule to remember: for an indefinite-life asset, the note gives the carrying amount and the reasons for the assessment. Effect: without justification, the reader does not know why no amortisation is recognised.","es":""}},{"id":"B","text":{"fr":"","en":"The reasons supporting the indefinite life and the significant factors.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The market value of the catalogue, estimated by an independent valuer at each reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"A market value estimated by an expert at each year-end is not the information required for an indefinite-life asset: paragraph 122 asks for the carrying amount and the reasons for the indefinite life, with the determining factors (IAS 38, para. 122). Rule to remember: the disclosure is about justifying the life, not about a market valuation.","es":""}},{"id":"D","text":{"fr":"","en":"Nothing: the carrying amount and the absence of amortisation are enough for an indefinite-life asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount is already in the draft note, but it is not enough: for an indefinite-life asset, the reasons for the assessment must also be given, describing the factors that played a significant role (IAS 38, para. 122). Rule to remember: the absence of amortisation is justified in the note. Effect: the reader can assess the judgement behind it.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000440","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.INDEFINITE_LIFE","IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000440","tested_point":"QST.IAS38.000440","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §122","IAS 38 §90"],"exercise":{"prompt":{"fr":"","en":"Mirabeau Thermal is drafting the justification for the indefinite useful life of an acquired mineral water brand. Which item is relevant to describe as a significant factor in the note?","es":""},"explanation":{"fr":"","en":"The note must set out the reasons for the indefinite life and the factors that played a significant role (IAS 38, para. 122). The factors considered in assessing useful life include, among others, the stability of the industry and the level of maintenance expenditure required to obtain the expected benefits (IAS 38, para. 90).","es":""},"common_error":{"fr":"","en":"Justifying an indefinite life by the effect wanted on profit or loss rather than by factors specific to the brand.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Management's wish to avoid reducing profit with an amortisation charge.","es":""},"correct":false,"feedback":{"fr":"","en":"Management's wish not to reduce profit with an amortisation charge is a presentation objective, not a factor in assessing useful life: the factors in paragraph 90 relate to the asset and its environment, such as the stability of the industry or the level of maintenance expenditure (IAS 38, para. 90). Rule to remember: an indefinite life is justified by facts about the asset, not by the effect wanted on profit or loss.","es":""}},{"id":"B","text":{"fr":"","en":"The corporate income tax rate applicable to the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"The corporate tax rate applicable to the entity says nothing about the period over which the brand will provide benefits: it is not among the factors used to assess useful life, which relate to the asset and its market (IAS 38, para. 90). Rule to remember: the note describes factors that explain the brand's life, not the entity's tax data (IAS 38, para. 122).","es":""}},{"id":"C","text":{"fr":"","en":"The stability of the industry and the level of brand support expenditure required to obtain the expected benefits.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The fact that the brand was acquired from a third party rather than created internally.","es":""},"correct":false,"feedback":{"fr":"","en":"Having acquired the brand from a third party rather than created it internally does not determine its useful life: the origin of the asset does not, by itself, justify an indefinite life. The factors to describe are those in paragraph 90, such as industry stability and support expenditure (IAS 38, paras. 90 and 122). Rule to remember: the origin of an asset is not enough to justify an indefinite life.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000441","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.INDEFINITE_LIFE","IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000441","tested_point":"QST.IAS38.000441","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §122","IAS 38 §88"],"exercise":{"prompt":{"fr":"","en":"Hélvarn's audit committee reviews four proposed wordings to justify, in the notes, the indefinite useful life of an acquired newspaper title. Which one is acceptable?","es":""},"explanation":{"fr":"","en":"A useful life is classified as indefinite when a review of all the relevant factors does not make it possible to set any horizon beyond which the asset would stop providing positive net cash flows (IAS 38, para. 88). The note must present these reasons and the significant factors (IAS 38, para. 122). Only the second wording rests on such an analysis.","es":""},"common_error":{"fr":"","en":"Justifying an indefinite life by the intention to keep the asset or by group policy.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The title is not amortised because it was acquired in a business combination.","es":""},"correct":false,"feedback":{"fr":"","en":"Having acquired the title in a business combination does not determine its useful life: the note must give the reasons for the indefinite life and the determining factors (IAS 38, para. 122), based on the review of relevant factors (IAS 38, para. 88). Rule to remember: the way an asset was acquired does not explain the absence of amortisation.","es":""}},{"id":"B","text":{"fr":"","en":"After analysing readership, market stability and the editorial maintenance expenditure, nothing makes it possible to set a horizon beyond which the title would stop providing positive net cash flows.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The title is not amortised because management intends to keep it for a very long time.","es":""},"correct":false,"feedback":{"fr":"","en":"An intention to keep the title for a very long time does not establish that there is no limit to net positive cash flows: life is indefinite when the review of relevant factors does not allow any limit to be set (IAS 38, para. 88). Rule to remember: an indefinite life results from an analysis of the asset, not from management's intention. Effect: such wording would not support the judgement presented in the note.","es":""}},{"id":"D","text":{"fr":"","en":"The title is not amortised because group policy excludes amortisation of newspaper titles.","es":""},"correct":false,"feedback":{"fr":"","en":"A group policy excluding amortisation of newspaper titles does not replace the assessment of factors specific to the asset: an indefinite life means that no limit can be set to net cash flows, and the note gives the reasons (IAS 38, paras. 88 and 122). Rule to remember: an indefinite life is justified title by title, not by a general policy.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000442","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.INDEFINITE_LIFE","IAS38.IMPAIRMENT.INDEFINITE_LIFE","IAS38.MEASUREMENT_MODEL.COST_MODEL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000442","tested_point":"QST.IAS38.000442","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000011","section_id":"cost-model-rule"},"references":["IAS 38 §122","IAS 38 §107","IAS 38 §74"],"exercise":{"prompt":{"fr":"","en":"The Sorvelle group, which applies the cost model, holds an indefinite-life brand acquired for 900,000. An impairment loss of 150,000 was recognised two years ago, with no reversal since. The controller proposes to disclose the carrying amount after deducting notional amortisation of 90,000. Which carrying amount must be disclosed for this brand?","es":""},"explanation":{"fr":"","en":"An intangible asset with an indefinite useful life is not amortised (IAS 38, para. 107); under the cost model, its carrying amount is cost less accumulated impairment losses (IAS 38, para. 74): 900,000 − 150,000 = 750,000. This is the amount disclosed together with the reasons for the indefinite life (IAS 38, para. 122).","es":""},"common_error":{"fr":"","en":"Deducting a notional amortisation from an indefinite-life asset to calculate its carrying amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"900,000.","es":""},"correct":false,"feedback":{"fr":"","en":"900,000 is the original cost: it ignores the impairment loss of 150,000 recognised two years ago and not reversed. Under the cost model, the carrying amount is cost less accumulated impairment losses (IAS 38, para. 74). Rule to remember: even without amortisation, the carrying amount is reduced by accumulated impairment losses.","es":""}},{"id":"B","text":{"fr":"","en":"750,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"660,000.","es":""},"correct":false,"feedback":{"fr":"","en":"660,000 deducts a notional amortisation of 90,000, whereas an intangible asset with an indefinite life is not amortised (IAS 38, para. 107): the carrying amount is 900,000 − 150,000 = 750,000 (IAS 38, para. 74). Rule to remember: the carrying amount disclosed does not reflect amortisation that has not been recognised. Effect: Sorvelle's note would show a figure different from the balance sheet.","es":""}},{"id":"D","text":{"fr":"","en":"150,000.","es":""},"correct":false,"feedback":{"fr":"","en":"150,000 is the amount of the impairment loss, not the carrying amount: the carrying amount is cost less accumulated impairment losses, that is 900,000 − 150,000 = 750,000 (IAS 38, para. 74). Rule to remember: the carrying amount is the difference between cost and the accumulated balances, not the accumulated balance itself.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000446","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RD_EXPENSE","IAS38.INTERNAL_GENERATION.RESEARCH","IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000806","tested_point":"VG.IAS38.000806","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §126","IAS 38 §54","IAS 38 §57","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"During the year, Ombrevalle incurred {research_costs} of research expenditure on new materials, {development_before_criteria} of development expenditure on a sensor before all the capitalisation criteria were demonstrated, then {development_capitalised} of development expenditure capitalised once the criteria were met. It also incurred {launch_advertising} of advertising for the sensor launch. What amount of research and development expenditure recognised as an expense must it disclose?","es":""},"explanation":{"fr":"","en":"Approach: include research and development incurred before the criteria were demonstrated; exclude capitalised development and advertising. Research is expensed when incurred (IAS 38, para. 54); development is capitalised once the criteria are demonstrated, so earlier expenditure stays in expenses (IAS 38, para. 57). Advertising is an expense (IAS 38, para. 69), but it is not R&D. Total: 120,000 + 80,000 = 200,000. Trap: leaving out the development incurred before the criteria. Rule to remember: the notes give the total amount of R&D recognised as an expense in the period (IAS 38, para. 126).","es":""},"common_error":{"fr":"","en":"Omitting development expensed before the criteria and disclosing 120,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"research_costs","value":"120000","unit":"EUR"},{"id":"development_before_criteria","value":"80000","unit":"EUR"},{"id":"development_capitalised","value":"150000","unit":"EUR"},{"id":"launch_advertising","value":"40000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Research expenditure","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Development incurred before the criteria were demonstrated","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Development capitalised","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Launch advertising","es":""},"value":"40000","unit":"EUR"}],"steps":[{"id":"RD_EXPENSE","label":{"fr":"","en":"R&D recognised as an expense to disclose","es":""},"answer":200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"RD_EXPENSE","meaning":{"fr":"","en":"R&D recognised as an expense to disclose","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Research expenditure","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Development incurred before the criteria were demonstrated","es":""},"value":80000,"unit":"EUR"}],"result":200000,"unit":"EUR"}],"rationale":{"fr":"","en":"the notes give the total amount of R&D recognised as an expense in the period (IAS 38, para. 126).","es":""},"references":["REF.IAS38.126","REF.IAS38.54","REF.IAS38.57","REF.IAS38.69"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000447","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RD_EXPENSE","IAS38.INTERNAL_GENERATION.RESEARCH","IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA","IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000806","tested_point":"VG.IAS38.000806","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §126","IAS 38 §54","IAS 38 §57","IAS 38 §69"],"exercise":{"prompt":{"fr":"","en":"In 20X2, the video game publisher Kalmira carried out an exploratory study of graphics engines for {research_costs}. It then developed a new game: {development_before_criteria} was incurred from January to April, before all the criteria were demonstrated on 1 May, and {development_capitalised} was capitalised from May to December. Finally, training the support teams for the new game cost {staff_training}. What amount of research and development expenditure recognised as an expense in 20X2 must be disclosed?","es":""},"explanation":{"fr":"","en":"Approach: include the exploratory study and the development incurred from January to April, before the criteria were demonstrated on 1 May; exclude capitalised development and training. The exploratory study is research, expensed (IAS 38, para. 54); development before the criteria stays in expenses (IAS 38, para. 57). Training is an expense (IAS 38, para. 69) that is not R&D. Total: 65,000 + 44,000 = 109,000. Trap: including training or capitalised development. Rule to remember: the notes give the total of R&D recognised as an expense in the period (IAS 38, para. 126).","es":""},"common_error":{"fr":"","en":"Keeping only research and disclosing 65,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"research_costs","value":"65000","unit":"EUR"},{"id":"development_before_criteria","value":"44000","unit":"EUR"},{"id":"development_capitalised","value":"210000","unit":"EUR"},{"id":"staff_training","value":"18000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Exploratory study (research)","es":""},"value":"65000","unit":"EUR"},{"label":{"fr":"","en":"Development from January to April","es":""},"value":"44000","unit":"EUR"},{"label":{"fr":"","en":"Development capitalised from May to December","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Training of support teams","es":""},"value":"18000","unit":"EUR"}],"steps":[{"id":"RD_EXPENSE","label":{"fr":"","en":"R&D recognised as an expense in 20X2","es":""},"answer":109000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"RD_EXPENSE","meaning":{"fr":"","en":"R&D recognised as an expense in 20X2","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Exploratory study (research)","es":""},"value":65000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Development from January to April","es":""},"value":44000,"unit":"EUR"}],"result":109000,"unit":"EUR"}],"rationale":{"fr":"","en":"the notes give the total of R&D recognised as an expense in the period (IAS 38, para. 126).","es":""},"references":["REF.IAS38.126","REF.IAS38.54","REF.IAS38.57","REF.IAS38.69"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS38.000448","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RD_EXPENSE","IAS38.INTERNAL_GENERATION.PHASES","IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000807","tested_point":"VG.IAS38.000807","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §126","IAS 38 §53","IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"Tarvelle carried out three internal projects. For project A, it could not distinguish the research phase from the development phase; expenditure amounts to {undistinguished_project}. Project B, a basic research project, cost {research_costs}. Project C has met all the development criteria since the start of the year; its expenditure of {development_capitalised} was capitalised. What amount of R&D recognised as an expense must be disclosed?","es":""},"explanation":{"fr":"","en":"Approach: identify, project by project, what is expensed. When the two phases of a project cannot be distinguished, all its expenditure is treated as incurred in the research phase (IAS 38, para. 53), and so is expensed (IAS 38, para. 54). The pure research project is expensed too. Total: 90,000 + 30,000 = 120,000; the capitalised expenditure of project C is not included. Trap: capitalising the project whose phases are indistinguishable. Rule to remember: the notes give the total R&D recognised as an expense, including projects whose phases cannot be separated (IAS 38, para. 126).","es":""},"common_error":{"fr":"","en":"Excluding project A and disclosing 30,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"undistinguished_project","value":"90000","unit":"EUR"},{"id":"research_costs","value":"30000","unit":"EUR"},{"id":"development_capitalised","value":"70000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Project A (phases not distinguished)","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Project B (research)","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Project C (development capitalised)","es":""},"value":"70000","unit":"EUR"}],"steps":[{"id":"RD_EXPENSE","label":{"fr":"","en":"R&D recognised as an expense","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"RD_EXPENSE","meaning":{"fr":"","en":"R&D recognised as an expense","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Project A (phases not distinguished)","es":""},"value":90000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Project B (research)","es":""},"value":30000,"unit":"EUR"}],"result":120000,"unit":"EUR"}],"rationale":{"fr":"","en":"the notes give the total R&D recognised as an expense, including projects whose phases cannot be separated (IAS 38, para. 126).","es":""},"references":["REF.IAS38.126","REF.IAS38.53","REF.IAS38.54"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000449","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RD_EXPENSE","IAS38.INTERNAL_GENERATION.PHASES","IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"CALCULATION","context":"V1_VG.IAS38.000807","tested_point":"VG.IAS38.000807","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §126","IAS 38 §53","IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"The technical centre of the Brunelles farming cooperative spent {research_costs} testing yeast strains in the laboratory. Its harvest traceability tool, which meets the capitalisation criteria, gave rise to {development_capitalised} of capitalised expenditure. A connected irrigation project cost {undistinguished_project}, and the cooperative cannot separate what relates to research from what relates to development. What total of R&D expensed does the cooperative mention in its notes?","es":""},"explanation":{"fr":"","en":"Approach: identify what is expensed. The laboratory tests are research (IAS 38, para. 54). Expenditure on a project whose research and development phases cannot be separated is treated as research (IAS 38, para. 53), so it is expensed too. The traceability tool, whose criteria are met, is capitalised and excluded. Total: 48,000 + 56,000 = 104,000. Trap: capitalising the irrigation project because the phases cannot be separated. Rule to remember: the notes give the total R&D recognised as an expense in the period (IAS 38, para. 126).","es":""},"common_error":{"fr":"","en":"Forgetting the irrigation project and disclosing 48,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"research_costs","value":"48000","unit":"EUR"},{"id":"development_capitalised","value":"130000","unit":"EUR"},{"id":"undistinguished_project","value":"56000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Laboratory tests (research)","es":""},"value":"48000","unit":"EUR"},{"label":{"fr":"","en":"Traceability tool (development capitalised)","es":""},"value":"130000","unit":"EUR"},{"label":{"fr":"","en":"Connected irrigation (phases not separable)","es":""},"value":"56000","unit":"EUR"}],"steps":[{"id":"RD_EXPENSE","label":{"fr":"","en":"R&D expensed","es":""},"answer":104000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"RD_EXPENSE","meaning":{"fr":"","en":"R&D expensed","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Laboratory tests (research)","es":""},"value":48000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Connected irrigation (phases not separable)","es":""},"value":56000,"unit":"EUR"}],"result":104000,"unit":"EUR"}],"rationale":{"fr":"","en":"the notes give the total R&D recognised as an expense in the period (IAS 38, para. 126).","es":""},"references":["REF.IAS38.126","REF.IAS38.53","REF.IAS38.54"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS38.000450","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RD_EXPENSE","IAS38.INTERNAL_GENERATION.RESEARCH"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000450","tested_point":"QST.IAS38.000450","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §126","IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"Glendor capitalises all its development expenditure, which meets the criteria from the start of the projects, and expenses its research expenditure. Its finance director believes no disclosure of R&D expensed is necessary. Is he right?","es":""},"explanation":{"fr":"","en":"Research expenditure is always recognised as an expense (IAS 38, para. 54). The entity discloses the aggregate amount of research and development expenditure recognised as an expense during the period (IAS 38, para. 126): Glendor must therefore disclose its research expenditure.","es":""},"common_error":{"fr":"","en":"Believing that the disclosure of R&D expensed applies to entities that expense development, not to those that expense research.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: only entities that expense development are concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"The finance director confuses « expensing development » with « having R&D in expenses »: Glendor expenses its research expenditure (IAS 38, para. 54), and the disclosure covers the total R&D recognised as an expense in the period (IAS 38, para. 126). Rule to remember: the requirement covers all R&D expensed, including when it is limited to research.","es":""}},{"id":"B","text":{"fr":"","en":"Yes: the disclosure only covers capitalised expenditure.","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosure does not target capitalised expenditure: it covers R&D expenditure recognised as an expense in the period (IAS 38, para. 126). Here, capitalised development is excluded, but research expenditure, expensed (IAS 38, para. 54), must be disclosed. Rule to remember: disclose the R&D that is expensed, not the R&D that is capitalised.","es":""}},{"id":"C","text":{"fr":"","en":"No: the aggregate R&D recognised as an expense, here research, must be disclosed.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No: Glendor must also expense its development in order to disclose it.","es":""},"correct":false,"feedback":{"fr":"","en":"Glendor does not have to expense its development in order to give the disclosure: development that meets the criteria is capitalised, and the disclosure requirement does not change that treatment. What is disclosed is the total R&D expensed, here research (IAS 38, paras. 54 and 126). Rule to remember: disclosure follows the accounting treatment; it does not alter it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000451","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RD_EXPENSE","IAS38.INTERNAL_GENERATION.DEVELOPMENT_CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000451","tested_point":"QST.IAS38.000451","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"development-rule"},"references":["IAS 38 §126","IAS 38 §57"],"exercise":{"prompt":{"fr":"","en":"Velcourt's draft notes mention 70,000 of research expenditure recognised as an expense. However, during the year, Velcourt also expensed 30,000 of development expenditure incurred before the capitalisation criteria were demonstrated, then capitalised 90,000 of development. Which amount must the notes disclose?","es":""},"explanation":{"fr":"","en":"The amount to disclose is the aggregate research and development expenditure recognised as an expense during the period (IAS 38, para. 126), including development expensed because the criteria had not been demonstrated (IAS 38, para. 57): 70,000 + 30,000 = 100,000. Capitalised development is not part of it.","es":""},"common_error":{"fr":"","en":"Leaving out of the R&D total the development expensed before the criteria were demonstrated.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"70,000.","es":""},"correct":false,"feedback":{"fr":"","en":"70,000 is the amount in the draft notes: it omits the 30,000 of development expensed before the criteria were demonstrated. The total to disclose includes research and development recognised as an expense (IAS 38, para. 126), including development before the criteria were demonstrated (IAS 38, para. 57). Rule to remember: development before the criteria is expensed and enters the total.","es":""}},{"id":"B","text":{"fr":"","en":"100,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"190,000.","es":""},"correct":false,"feedback":{"fr":"","en":"190,000 adds research, development expensed and capitalised development (70,000 + 30,000 + 90,000). But capitalised development is recorded as an asset: it is not an expense of the period, and it is not part of the R&D recognised as an expense (IAS 38, para. 126). Rule to remember: disclose R&D that is expensed, not R&D recorded as an asset.","es":""}},{"id":"D","text":{"fr":"","en":"160,000.","es":""},"correct":false,"feedback":{"fr":"","en":"160,000 adds research (70,000) and capitalised development (90,000), forgetting the 30,000 expensed before the criteria. The amount to disclose includes research and development recognised as an expense, that is 70,000 + 30,000 (IAS 38, para. 126), and excludes capitalised development. Rule to remember: R&D expensed is obtained by adding the expenses, not the capitalised amounts.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000452","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RD_EXPENSE","IAS38.EXPENSE.PAST_EXPENSES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000452","tested_point":"QST.IAS38.000452","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §126","IAS 38 §71"],"exercise":{"prompt":{"fr":"","en":"In 20X1, Ardoval expensed 50,000 of development expenditure on a medical device. In 20X2, it incurs 35,000 of research on another device and 20,000 of development on the medical device before the capitalisation criteria are demonstrated in March 20X2. Management proposes to reinstate the 50,000 of 20X1 as an asset. What amount of R&D recognised as an expense does Ardoval disclose for 20X2?","es":""},"explanation":{"fr":"","en":"Expenditure initially recognised as an expense is not recognised later as part of the cost of an intangible asset (IAS 38, para. 71): the 50,000 of 20X1 remains an expense of 20X1 and is neither reinstated nor reversed in 20X2. For 20X2, the aggregate R&D recognised as an expense (IAS 38, para. 126) is 35,000 + 20,000 = 55,000.","es":""},"common_error":{"fr":"","en":"Reinstating as an asset development costs already expensed when the criteria are later demonstrated.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"105,000.","es":""},"correct":false,"feedback":{"fr":"","en":"105,000 picks up the 50,000 of 20X1: it was expensed in 20X1 and does not belong to 20X2 R&D. The total to disclose for 20X2 is 35,000 + 20,000 (IAS 38, para. 126), and expenditure already expensed is not reinstated as an asset (IAS 38, para. 71). Rule to remember: the R&D expensed total for a year covers the expenditure of that year.","es":""}},{"id":"B","text":{"fr":"","en":"35,000.","es":""},"correct":false,"feedback":{"fr":"","en":"35,000 is the 20X2 research: it forgets the 20,000 of development incurred before the criteria were demonstrated in March 20X2, which is also expensed (IAS 38, para. 57). The 20X2 total is 35,000 + 20,000 = 55,000 (IAS 38, para. 126). Rule to remember: development before the criteria were demonstrated is part of the R&D expensed.","es":""}},{"id":"C","text":{"fr":"","en":"55,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"5,000.","es":""},"correct":false,"feedback":{"fr":"","en":"5,000 would result from reinstating as an asset amounts already expensed (55,000 − 50,000), which the standard does not allow: expenditure initially recognised as an expense is not later included in the cost of an intangible asset (IAS 38, para. 71). The 50,000 of 20X1 stays in 20X1 expenses. Rule to remember: what has already been expensed is not reinstated as an asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000453","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000453","tested_point":"QST.IAS38.000453","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §4"],"exercise":{"prompt":{"fr":"","en":"Ferrandel acquires a computer numerically controlled machining centre. The overall price includes the control software installed by the manufacturer; without this software the machine cannot perform any operation. How should Ferrandel account for the control software?","es":""},"explanation":{"fr":"","en":"When an asset combines tangible and intangible elements, the entity uses judgement to identify the more significant element. Software without which a computer-controlled machine cannot operate is an integral part of the hardware: it is treated as property, plant and equipment under IAS 16 (IAS 38, para. 4). The fact that its price appears separately on the invoice does not change this conclusion.","es":""},"common_error":{"fr":"","en":"Separating as an intangible asset software embedded in a machine because its price appears on the invoice.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a separate intangible asset within IAS 38, since the price of the software can be identified on the manufacturer's invoice.","es":""},"correct":false,"feedback":{"fr":"","en":"A price identifiable on the invoice is not enough to make the software a separate intangible asset: without it, the machine cannot perform any operation, so it is an integral part of the equipment and is treated with it under IAS 16 (IAS 38, para. 4). Rule to remember: judge which element of the whole is the most significant; the way the invoice is laid out does not decide.","es":""}},{"id":"B","text":{"fr":"","en":"As an integral part of the machine, recognised as property, plant and equipment under IAS 16.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As an intangible asset, since software is by nature non-physical, whatever its link with the hardware.","es":""},"correct":false,"feedback":{"fr":"","en":"The intangible nature of software does not settle the question: when an asset combines tangible and intangible elements, judgement determines the most significant element, and software without which the machine cannot operate is an integral part of the equipment (IAS 38, para. 4). Rule to remember: the link to the equipment determines the standard, not the nature of the software viewed alone.","es":""}},{"id":"D","text":{"fr":"","en":"As an expense of the period, because the software has no resale value independently of the machine.","es":""},"correct":false,"feedback":{"fr":"","en":"The control software is part of the cost of a tangible asset and is not expensed: indispensable to the operation of the machine, it is treated with it under IAS 16 (IAS 38, para. 4). The absence of a separate resale value is not a reason to expense it. Rule to remember: software embedded in a machine follows the treatment of the machine.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000454","standard_id":"IAS38","concept_ids":["IAS38.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000454","tested_point":"QST.IAS38.000454","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000005","section_id":"general-scope"},"references":["IAS 38 §4"],"exercise":{"prompt":{"fr":"","en":"Bramvelle is equipping its new head office. It buys 40 laptops delivered with their operating system. It also acquires, from another vendor, a licence for management software that it can install on any of its servers and transfer from one machine to another; the software is supplied on a simple USB stick. Which accounting treatment is appropriate?","es":""},"explanation":{"fr":"","en":"For an asset combining tangible and intangible elements, the entity uses judgement to identify the more significant element. The operating system of a computer is an integral part of the hardware and is property, plant and equipment, whereas software that is not an integral part of the hardware is an intangible asset (IAS 38, para. 4). The USB stick is only a medium: it does not make the software a tangible asset.","es":""},"common_error":{"fr":"","en":"Classifying as tangible a separable software package because it is delivered on a physical medium.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Laptops and operating systems under IAS 16; the software, separable from the hardware, as an intangible asset under IAS 38.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Everything under IAS 16, because the software is supplied on a physical medium, a USB stick, and runs on servers that are property, plant and equipment.","es":""},"correct":false,"feedback":{"fr":"","en":"The physical medium, here a USB key, is incidental: the package can be moved from one server to another, so it is separable from the hardware, and the right to use it is the significant element. It falls under IAS 38 (IAS 38, para. 4). Rule to remember: a physical medium does not turn separable software into a tangible asset.","es":""}},{"id":"C","text":{"fr":"","en":"Everything under IAS 38, including the laptops, because their value to Bramvelle lies mainly in the software they allow it to use.","es":""},"correct":false,"feedback":{"fr":"","en":"The computers are tangible items and their operating system is an integral part of them: they fall under IAS 16 together with their operating system, even if their value to Bramvelle lies in the software they run (IAS 38, para. 4). Rule to remember: the most significant element determines the standard, and an operating system follows its hardware.","es":""}},{"id":"D","text":{"fr":"","en":"The software and the operating systems under IAS 38, the laptops being recognised under IAS 16 without their operating system.","es":""},"correct":false,"feedback":{"fr":"","en":"The operating system of a computer is an integral part of the hardware: it is not separated as an intangible asset but accounted for with the computers under IAS 16 (IAS 38, para. 4). It is the transferable package that is the intangible asset. Rule to remember: the operating system follows the computer, separable software follows IAS 38.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000455","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000455","tested_point":"QST.IAS38.000455","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"two-criteria"},"references":["IAS 38 §25"],"exercise":{"prompt":{"fr":"","en":"True or false? When an entity acquires an intangible asset separately, the criterion relating to the probability of future economic benefits is regarded as met, even if the amount or timing of those benefits remains uncertain.","es":""},"explanation":{"fr":"","en":"True. Approach: for a separate acquisition, look at what the price paid reflects: it incorporates the buyer's expectations about the probability of future benefits, even if their amount or timing is uncertain. The probability criterion is therefore regarded as met in this case (IAS 38, para. 25). Trap: requiring extra evidence of probability for a separately acquired asset. Rule to remember: for a separate acquisition, the probability criterion is regarded as met (IAS 38, para. 25).","es":""},"common_error":{"fr":"","en":"Requiring extra evidence of probability for a separately acquired asset whose benefits are uncertain.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000456","standard_id":"IAS38","concept_ids":["IAS38.RECOGNITION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000456","tested_point":"QST.IAS38.000456","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000003","section_id":"two-criteria"},"references":["IAS 38 §25","IAS 38 §26"],"exercise":{"prompt":{"fr":"","en":"Quintarel buys from an inventor, for a cash payment of 120,000, a patent on a filtration system. The amount and timing of future sales of the products using the patent are uncertain. Why are both recognition criteria regarded as met?","es":""},"explanation":{"fr":"","en":"In a separate acquisition, the price paid reflects the buyer's expectations about the probability of future benefits: the probability criterion is always regarded as met (IAS 38, para. 25). The cost of a separately acquired asset can usually be measured reliably, particularly when the consideration is paid in cash (IAS 38, para. 26).","es":""},"common_error":{"fr":"","en":"Trying to demonstrate the probability of benefits with a business plan for a separately acquired asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The price reflects Quintarel's expectations about the probability of benefits, and a cost settled in cash can generally be measured reliably.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The inventor has guaranteed a minimum sales volume, which makes the amount and timing of the patent's future benefits certain.","es":""},"correct":false,"feedback":{"fr":"","en":"The facts mention no volume guarantee, and the standard does not require one: for a separate acquisition, uncertainty about amount and timing is already built into the price, and the probability criterion is regarded as met (IAS 38, para. 25). Rule to remember: the probability criterion does not assume that benefits are certain.","es":""}},{"id":"C","text":{"fr":"","en":"A patent is always traded in an active market, whose published prices prove both the probability of benefits and the reliability of cost.","es":""},"correct":false,"feedback":{"fr":"","en":"A patent is a unique asset: no active market exists for it, and that is not the basis of the criteria. For a separate acquisition, probability follows from the price paid (IAS 38, para. 25) and reliability from the cost being settled in cash (IAS 38, para. 26). Rule to remember: both criteria stem from the nature of a separate acquisition, not from an active market.","es":""}},{"id":"D","text":{"fr":"","en":"Only the reliable-cost criterion is met automatically; the probability of benefits must be demonstrated by a detailed business plan before any recognition.","es":""},"correct":false,"feedback":{"fr":"","en":"For a separate acquisition, the probability of benefits is also regarded as met, without a detailed business plan: the price paid already reflects the buyer's expectations (IAS 38, para. 25), and a cost settled in cash can generally be measured reliably (IAS 38, para. 26). Rule to remember: for a separate acquisition paid in cash, probability is regarded as met and the cost can generally be measured reliably.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000457","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.EXCHANGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000457","tested_point":"QST.IAS38.000457","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"exchange-rule"},"references":["IAS 38 §46"],"exercise":{"prompt":{"fr":"","en":"Telvanor exchanges, with no cash adjustment, its broadcasting licence for the North region for the South region licence held by a competitor. The North licence provides stable and recurring advertising revenue; the South licence, in a developing territory, is expected to generate later and more volatile revenue. Both licences have a fair value of 400,000, and the difference between the cash flow profiles is significant relative to that value. Which analysis complies with IAS 38?","es":""},"explanation":{"fr":"","en":"An exchange has commercial substance when the configuration of cash flows (risk, timing, amount) of the asset received differs from that of the asset given up, or when the entity-specific value of the affected operations changes, and that difference is significant relative to the fair value of the assets exchanged (IAS 38, para. 46). Equal fair values do not prevent this. The entity-specific value is based on post-tax cash flows, and the conclusion may be clear without detailed calculations.","es":""},"common_error":{"fr":"","en":"Concluding that an exchange of two assets of the same nature and fair value has no commercial substance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The exchange lacks commercial substance, because both assets are licences of the same nature and the same fair value, which leaves Telvanor's position unchanged.","es":""},"correct":false,"feedback":{"fr":"","en":"Licences of the same nature and the same fair value can have commercial substance: equal fair values do not rule it out. What matters is the change in the entity's future cash flows, in particular a different profile (risk, timing, amount) for the asset received (IAS 38, para. 46). Rule to remember: commercial substance is assessed on cash flows, not on the nature or fair value of the assets.","es":""}},{"id":"B","text":{"fr":"","en":"The exchange has commercial substance: the risk, timing and amount of the cash flows of the licence received differ significantly from those of the licence given up.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Commercial substance can only be established by calculating the entity-specific value from pre-tax cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"Entity-specific value is one of the two possible criteria, but it is determined from post-tax cash flows, and the cash flow profile criterion is enough here (IAS 38, para. 46). Rule to remember: commercial substance exists if the cash flow profile of the asset received differs from that of the asset given up, or if the entity-specific value changes, significantly.","es":""}},{"id":"D","text":{"fr":"","en":"Commercial substance always requires a detailed calculation of the discounted cash flows of both licences, even when the difference between them is obvious.","es":""},"correct":false,"feedback":{"fr":"","en":"The conclusion can be obvious without a detailed calculation: when the difference between cash flow profiles is clear, as here (stable, recurring flows versus later, volatile ones), a discounted calculation of both licences is not systematically required (IAS 38, para. 46). Rule to remember: conclude on commercial substance from the difference in cash flow profile, calculating when the answer is not obvious.","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000458","standard_id":"IAS38","concept_ids":["IAS38.OTHER_ACQUISITIONS.EXCHANGE"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000458","tested_point":"QST.IAS38.000458","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000009","section_id":"exchange-rule"},"references":["IAS 38 §47","IAS 38 §45"],"exercise":{"prompt":{"fr":"","en":"Marvesse transfers a customer database, with a carrying amount of {given_carrying_amount}, in exchange for a software operating licence, with no cash adjustment. The exchange has commercial substance. The fair value of the database is reliably estimated at {given_fair_value}, based on recent transactions in comparable databases and within a narrow range. The fair value of the licence received, estimated at {received_fair_value} using an internal model, is reliable but less clearly evident than that of the database given up. What is the cost of the licence received?","es":""},"explanation":{"fr":"","en":"Approach: the exchange has commercial substance and the fair values are reliable, so the licence is measured at fair value (IAS 38, para. 45). Cost is the fair value of the asset given up, unless the fair value of the asset received is more clearly evident (IAS 38, para. 47); here, the fair value of the database given up is the best supported, hence a cost of 210,000. Trap: using the carrying amount of 90,000, which applies when there is no commercial substance, or when neither fair value is reliable (IAS 38, para. 45). Rule to remember: without a cash balancing amount, the cost of the asset received is the fair value of the asset given up, unless the fair value of the asset received is more clearly evident (IAS 38, para. 47).","es":""},"common_error":{"fr":"","en":"Using the fair value of the licence received, 240,000, although it is less clearly evident.","es":""},"format":"CALCULATION","placeholders":[{"id":"given_carrying_amount","value":"90000","unit":"EUR"},{"id":"given_fair_value","value":"210000","unit":"EUR"},{"id":"received_fair_value","value":"240000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the database given up","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the database given up","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Estimated fair value of the licence received","es":""},"value":"240000","unit":"EUR"}],"steps":[{"id":"LICENCE_COST","label":{"fr":"","en":"Cost of the licence received","es":""},"answer":210000,"tolerance":0,"unit":"EUR"}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000459","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000459","tested_point":"QST.IAS38.000459","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §56","IAS 38 §59"],"exercise":{"prompt":{"fr":"","en":"Voltanis, a battery manufacturer, lists the work carried out by its engineering department during the year. Which items are examples of development activities?","es":""},"explanation":{"fr":"","en":"Pre-production prototypes, tools and moulds involving new technology and the work on the selected alternative are examples of development activities (IAS 38, para. 59). Obtaining new knowledge and searching for alternatives for materials are research activities (IAS 38, para. 56).","es":""},"common_error":{"fr":"","en":"Classifying as development the acquisition of new knowledge or the search for alternatives.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A study aimed at obtaining new knowledge about electrolyte chemistry.","es":""},"correct":false,"feedback":{"fr":"","en":"Studying electrolyte chemistry to gain new knowledge is an example of a research activity (IAS 38, para. 56), not of development (IAS 38, para. 59). Rule to remember: acquiring new knowledge is research.","es":""}},{"id":"B","text":{"fr":"","en":"The design, construction and testing of a battery prototype before series production.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The search for possible replacement materials for the battery casing.","es":""},"correct":false,"feedback":{"fr":"","en":"Looking for possible replacement materials is a search for alternatives: it is an example of a research activity (IAS 38, para. 56). By contrast, the design, construction and testing of the alternative finally chosen is development (IAS 38, para. 59). Rule to remember: searching for alternatives is research; developing the one chosen is development.","es":""}},{"id":"D","text":{"fr":"","en":"The design of moulds involving new technology for the casing.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The design, construction and testing of the assembly process finally selected.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000460","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.PHASES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000460","tested_point":"QST.IAS38.000460","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"research-rule"},"references":["IAS 38 §59"],"exercise":{"prompt":{"fr":"","en":"Granovia designs, builds and operates a small pilot plant producing a new fertiliser. Its size does not allow profitable commercial production: it is used to validate the process before any investment in a factory. To which phase does this activity belong?","es":""},"explanation":{"fr":"","en":"The design, construction and operation of a pilot plant that is not of a scale economically feasible for commercial production is an example of a development activity (IAS 38, para. 59).","es":""},"common_error":{"fr":"","en":"Classifying the pilot plant as research because the process is not yet validated.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To the research phase, since the process has not yet been validated.","es":""},"correct":false,"feedback":{"fr":"","en":"The process has already been chosen and tested on a small scale: the stage of acquiring new knowledge that characterises research (IAS 38, para. 56) is over. Operating a pilot plant whose scale does not allow commercially viable production is cited as an example of development (IAS 38, para. 59). Rule to remember: a pilot plant of non-viable size is a development activity.","es":""}},{"id":"B","text":{"fr":"","en":"To the development phase.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To commercial production, the pilot plant already being an operating factory.","es":""},"correct":false,"feedback":{"fr":"","en":"The pilot plant is not of a size that allows economically viable commercial production: it is therefore not a commercial operation, but an example of a development activity (IAS 38, para. 59). Rule to remember: the non-viable size of the plant places it in development.","es":""}},{"id":"D","text":{"fr":"","en":"To neither phase: these are start-up costs of a new activity.","es":""},"correct":false,"feedback":{"fr":"","en":"The activities in paragraph 59 are cited as examples of development, and the pilot plant is one of them: it is not a start-up cost of a new activity (IAS 38, para. 59). Rule to remember: designing, building and operating a pilot plant of non-viable size is development.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000461","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000461","tested_point":"QST.IAS38.000461","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"principle"},"references":["IAS 38 §69","IAS 38 §69A"],"exercise":{"prompt":{"fr":"","en":"Fleurdane, a mail-order retailer, has its spring catalogue printed. The printer delivers the catalogues on 12 December 20X1; Fleurdane becomes their owner on that date and sends them to its customers in January 20X2. The reporting period ends on 31 December 20X1. When is the cost of the catalogues recognised as an expense?","es":""},"explanation":{"fr":"","en":"Mail-order catalogues are advertising and promotional expenditure: their cost is recognised as an expense when the entity has a right to access the goods (IAS 38, para. 69). That right exists once it owns them (IAS 38, para. 69A), that is on 12 December 20X1. The date of distribution to customers is irrelevant.","es":""},"common_error":{"fr":"","en":"Keeping the cost of advertising catalogues as an asset until they are sent to customers.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In 20X1, as soon as Fleurdane holds the catalogues and therefore has access to them.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In 20X2, when they are sent to customers, the cost remaining an asset until then.","es":""},"correct":false,"feedback":{"fr":"","en":"Keeping the cost of the catalogues as an asset until they are sent to customers confuses the date of access to the goods with the date of use: the expense arises as soon as Fleurdane has the right to access the catalogues, here on delivery and ownership on 12 December 20X1 (IAS 38, paras. 69 and 69A). Rule to remember: advertising is expensed once the goods can be accessed, not when they are distributed.","es":""}},{"id":"C","text":{"fr":"","en":"From January to June 20X2, over the catalogue's validity period, as an amortised intangible asset.","es":""},"correct":false,"feedback":{"fr":"","en":"A mail-order catalogue is advertising and promotion expenditure: it creates no intangible asset and is not amortised over the catalogue's validity period. The cost is expensed once the goods can be accessed (IAS 38, para. 69). Rule to remember: advertising expenditure is neither capitalised nor spread.","es":""}},{"id":"D","text":{"fr":"","en":"In 20X2, after being recognised as inventories under IAS 2 until the catalogues are distributed.","es":""},"correct":false,"feedback":{"fr":"","en":"Advertising catalogues are not inventory held for sale: they are advertising and promotion, expensed as soon as the entity has the right to access the goods (IAS 38, para. 69). They therefore do not stay as an asset until distribution. Rule to remember: advertising material is expensed on access; it is not inventory.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000462","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000462","tested_point":"QST.IAS38.000462","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"principle"},"references":["IAS 38 §70","IAS 38 §69A"],"exercise":{"prompt":{"fr":"","en":"Pradelys has a reporting date of 31 December 20X1. It has paid two invoices from its advertising agency: first, {prepaid_campaign}, paid on 15 December 20X1, for a television campaign that the agency will produce and have broadcast in February 20X2; second, {produced_spots} for advertising spots that the agency fully produced and delivered in November 20X1, and that Pradelys will itself show on the screens in its stores in January 20X2. What amount is recognised as a prepayment asset at 31 December 20X1, and what amount is recognised as an expense in 20X1?","es":""},"explanation":{"fr":"","en":"Approach: for each invoice, ask whether the service has been received. A prepayment can stay as an asset while the services paid for have not been received (IAS 38, para. 70): the television campaign, neither produced nor broadcast, leaves 60,000 as an asset. A service is received when the supplier performs it, not when the entity uses it to reach its customers (IAS 38, para. 69A): the spots produced and delivered in 20X1 are an expense of 25,000 in 20X1, even though they are shown in January 20X2. Trap: using the broadcast date. Rule to remember: the expense arises when the service is received, not when it is used (IAS 38, para. 69A).","es":""},"common_error":{"fr":"","en":"Keeping the 25,000 as an asset until the spots are shown in the stores.","es":""},"format":"CALCULATION","placeholders":[{"id":"prepaid_campaign","value":"60000","unit":"EUR"},{"id":"produced_spots","value":"25000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Payment for the television campaign to be produced in 20X2","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Invoice for the spots produced and delivered in 20X1","es":""},"value":"25000","unit":"EUR"}],"steps":[{"id":"PREPAYMENT_ASSET","label":{"fr":"","en":"Prepayment asset at 31 December 20X1","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"EXPENSE_20X1","label":{"fr":"","en":"Advertising expense for 20X1","es":""},"answer":25000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000463","standard_id":"IAS38","concept_ids":["IAS38.EXPENSE.EXPENSE_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000463","tested_point":"QST.IAS38.000463","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000010","section_id":"principle"},"references":["IAS 38 §68"],"exercise":{"prompt":{"fr":"","en":"The Corvalis group acquires Lumetra in a business combination within the scope of IFRS 3. Part of the price pays for the collective experience of Lumetra's sales teams; according to the analysis performed under IFRS 3, this item cannot be recognised as an intangible asset. How is the corresponding amount accounted for?","es":""},"explanation":{"fr":"","en":"As a rule, expenditure on an intangible item is recognised as an expense. There is an exception, however: when the item is acquired in a business combination and cannot be recognised as an intangible asset, its cost forms part of the goodwill recognised at the acquisition date (IAS 38, para. 68). The recognition of goodwill itself is governed by IFRS 3.","es":""},"common_error":{"fr":"","en":"Expensing at the acquisition date the amount for an intangible item that cannot be recognised, acquired in a business combination.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is recognised as an expense at the acquisition date, like any expenditure on an intangible item that cannot be recognised as an asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Expensing is the principle for expenditure on an intangible item, but IAS 38 provides an exception for an item acquired in a business combination that cannot be recognised as an intangible asset: its amount is part of goodwill (IAS 38, para. 68). Rule to remember: the collective experience acquired in a business combination feeds goodwill, not expenses.","es":""}},{"id":"B","text":{"fr":"","en":"It forms part of the amount recognised as goodwill at the acquisition date.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is recognised as a separate intangible asset, amortised over the average period of service of the sales staff.","es":""},"correct":false,"feedback":{"fr":"","en":"The facts state that the item cannot be recognised as an intangible asset: recording it as a separate asset amortised over the average tenure of the sales staff contradicts that analysis. The corresponding amount is part of goodwill at the acquisition date (IAS 38, para. 68). Rule to remember: an item that cannot be recognised separately does not become a separate asset.","es":""}},{"id":"D","text":{"fr":"","en":"It is charged directly to the group's equity at the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"No direct charge to the group's equity is provided for: the amount for the item that cannot be recognised separately goes into the goodwill recognised at the acquisition date (IAS 38, para. 68). Recognition of goodwill itself is a matter for IFRS 3. Rule to remember: this item feeds goodwill; it does not go through equity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000464","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000464","tested_point":"QST.IAS38.000464","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"revaluation-rule"},"references":["IAS 38 §76","IAS 38 §78"],"exercise":{"prompt":{"fr":"","en":"The management of Halvérac is considering adopting the revaluation model for several intangible assets. Which statements are correct?","es":""},"explanation":{"fr":"","en":"The revaluation model allows neither the revaluation of an item never recognised as an asset nor the initial recognition of an asset at an amount other than its cost (IAS 38, para. 76). An active market is rare for intangible assets, but may exist for freely transferable fishing or taxi licences; it cannot exist for brands or patents, which are unique, and the price of an individually negotiated transaction does not provide evidence of the fair value of another asset (IAS 38, para. 78).","es":""},"common_error":{"fr":"","en":"Revaluing a brand or a patent from a comparable transaction price when there is no active market.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Halvérac may revalue the brand it created internally and has never recognised as an asset.","es":""},"correct":false,"feedback":{"fr":"","en":"A brand created internally and never recognised as an asset cannot be revalued: the revaluation model does not allow an item that was never recognised to be revalued, because revaluation takes place after initial recognition at cost (IAS 38, para. 76). Rule to remember: revaluation presupposes initial recognition at cost.","es":""}},{"id":"B","text":{"fr":"","en":"The model does not allow an intangible asset to be initially recognised at an amount other than its cost.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In some countries, freely transferable fishing licences may be traded in an active market.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The price recently paid for a comparable patent, in a privately negotiated sale, is enough to establish the fair value of Halvérac's patent.","es":""},"correct":false,"feedback":{"fr":"","en":"The price of a comparable patent negotiated privately does not prove the fair value of Halvérac's patent: patents are unique and contracts are negotiated case by case, so the price paid for one asset does not prove the fair value of another (IAS 38, para. 78). Rule to remember: an isolated transaction price does not establish the fair value of another asset.","es":""}},{"id":"E","text":{"fr":"","en":"An active market cannot exist for a brand, each brand being unique.","es":""},"correct":true}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000465","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION","IAS38.INTERNAL_GENERATION.COST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000465","tested_point":"QST.IAS38.000465","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000001","section_id":"cost-rule"},"references":["IAS 38 §77","IAS 38 §65"],"exercise":{"prompt":{"fr":"","en":"After an internal process lasting several months, Pescarel has obtained a freely transferable production quota, traded in an active market. The expenditure incurred before the recognition criteria were met (30,000) was recognised as an expense; only the expenditure incurred afterwards (50,000) forms the cost of the asset. Pescarel applies the revaluation model to this class of assets. At the reporting date, the market price of the quota is 140,000. What may Pescarel do?","es":""},"explanation":{"fr":"","en":"The cost of an internally generated asset only includes the expenditure incurred from the date the recognition criteria are met (IAS 38, para. 65): it amounts here to 50,000. When only part of the cost could be recognised as an asset for this reason, the revaluation model may nevertheless be applied to the whole asset (IAS 38, para. 77). As the quota is traded in an active market, it can be revalued at 140,000.","es":""},"common_error":{"fr":"","en":"Thinking that an internally generated asset cannot be revalued because it has no acquisition cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: an internally generated asset can never be revalued, as it has no acquisition cost.","es":""},"correct":false,"feedback":{"fr":"","en":"An internally generated asset can be revalued: the standard provides that, when only part of the cost was recognised as an asset because the criteria were met part-way through the process, revaluation can apply to the whole asset (IAS 38, para. 77). Rule to remember: the absence of an acquisition cost does not prevent revaluing an internally generated asset. Effect: the quota can be shown at 140,000 instead of 50,000.","es":""}},{"id":"B","text":{"fr":"","en":"Revalue the asset, but cap its revalued amount at 50,000, the amount of expenditure recognised as an asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Revaluation applies to the whole asset, at its fair value determined by reference to the active market, that is 140,000; it is not limited to the 50,000 of expenditure recognised as an asset (IAS 38, para. 77). Rule to remember: the asset is revalued as a whole, even if part of its cost stayed in expenses.","es":""}},{"id":"C","text":{"fr":"","en":"Revalue the whole asset at its fair value of 140,000, determined by reference to the active market.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"First reinstate as an asset the 30,000 expensed, then revalue the quota from a rebuilt cost of 80,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The 30,000 expensed before the criteria were met is not part of cost and is not reinstated as an asset: the cost of the asset starts on the date the criteria are first met (IAS 38, para. 65). Revaluation uses the fair value of the whole asset, not a rebuilt cost of 80,000. Rule to remember: expenditure already expensed is not reinstated in cost (IAS 38, para. 71).","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000466","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000466","tested_point":"QST.IAS38.000466","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"revaluation-rule"},"references":["IAS 38 §87"],"exercise":{"prompt":{"fr":"","en":"Ondaris holds production quotas traded in an active market, acquired for {cost} and amortised on a straight-line basis over {useful_life} years, with no residual value. It applies the revaluation model. After {years_elapsed} years of amortisation, it revalues the quotas at {revalued_amount}; the remaining useful life is unchanged. Under its accounting policy, Ondaris transfers each year to retained earnings the part of the revaluation surplus realised through the use of the asset. For the year following the revaluation, calculate the amortisation based on the revalued amount, the amortisation that would have been based on historical cost and the amount transferred. Deferred tax is ignored.","es":""},"explanation":{"fr":"","en":"Approach: carrying amount before revaluation 400,000 − 2 × 40,000 = 320,000, hence a surplus of 480,000 − 320,000 = 160,000. Charge on the revalued amount: 480,000 / 8 = 60,000; on historical cost: 400,000 / 10 = 40,000. The amount realised through use is the difference, 20,000, transferred from the revaluation surplus to retained earnings without passing through profit or loss (IAS 38, para. 87). Trap: transferring the whole surplus of 160,000 every year. Case convention: the progressive transfer is an option, adopted in Ondaris' accounting policy. Rule to remember: the amount realised through use is the difference between the two charges (IAS 38, para. 87). Effect: the transfer is a movement between equity items.","es":""},"common_error":{"fr":"","en":"Transferring the whole surplus of 160,000 in the year following the revaluation.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"400000","unit":"EUR"},{"id":"useful_life","value":"10","unit":"YEARS"},{"id":"years_elapsed","value":"2","unit":"YEARS"},{"id":"revalued_amount","value":"480000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Acquisition cost of the quotas","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Total useful life (years)","es":""},"value":"10","unit":"YEARS"},{"label":{"fr":"","en":"Years elapsed at the revaluation date","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Revalued amount","es":""},"value":"480000","unit":"EUR"}],"steps":[{"id":"AMORTISATION_REVALUED","label":{"fr":"","en":"Annual amortisation based on the revalued amount","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"AMORTISATION_COST","label":{"fr":"","en":"Annual amortisation based on historical cost","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"TRANSFER","label":{"fr":"","en":"Amount transferred to retained earnings","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"AMORTISATION_REVALUED","meaning":{"fr":"","en":"Annual amortisation based on the revalued amount","es":""},"expression":"a / 8","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revalued amount","es":""},"value":480000,"unit":"EUR"}],"result":60000,"unit":"EUR"},{"step":"AMORTISATION_COST","meaning":{"fr":"","en":"Annual amortisation based on historical cost","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Acquisition cost of the quotas","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total useful life (years)","es":""},"value":10,"unit":"YEARS"}],"result":40000,"unit":"EUR"}],"rationale":{"fr":"","en":"the amount realised through use is the difference between the two charges (IAS 38, para. 87). Effect: the transfer is a movement between equity items.","es":""},"references":["REF.IAS38.87"]}},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000467","standard_id":"IAS38","concept_ids":["IAS38.MEASUREMENT_MODEL.REVALUATION"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000467","tested_point":"QST.IAS38.000467","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000012","section_id":"revaluation-rule"},"references":["IAS 38 §87"],"exercise":{"prompt":{"fr":"","en":"Taxelis applies the revaluation model to its taxi licences, which are freely transferable and traded in an active market. It sells one of them; at the disposal date, the revaluation surplus in equity relating to this licence amounts to 70,000. Under its accounting policy, Taxelis transfers the whole revaluation surplus when the asset is disposed of. Deferred tax is ignored. How are these 70,000 accounted for?","es":""},"explanation":{"fr":"","en":"The revaluation surplus accumulated in equity may be transferred directly to retained earnings when it is realised, in particular in full on disposal of the asset; the transfer is not made through profit or loss (IAS 38, para. 87). As Taxelis has chosen this option in its accounting policy, the entry debits the revaluation surplus by 70,000 and credits retained earnings by 70,000, with no effect on profit or loss or on total equity.","es":""},"common_error":{"fr":"","en":"Recycling the revaluation surplus to profit or loss when the asset is disposed of.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are reclassified to profit or loss, where they are added to the gain on disposal of the licence for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"The transfer of the revaluation surplus to retained earnings does not go through profit or loss: it is therefore not recycled into the gain on disposal (IAS 38, para. 87). Rule to remember: the realised revaluation surplus is transferred directly to retained earnings. Effect: the gain on disposal of the licence is not increased by 70,000.","es":""}},{"id":"B","text":{"fr":"","en":"They are transferred directly to retained earnings, without passing through profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They remain in the revaluation surplus until the company is wound up, because a revaluation surplus is never realised.","es":""},"correct":false,"feedback":{"fr":"","en":"The revaluation surplus can be transferred to retained earnings when it is realised, including in full on disposal of the asset, and Taxelis' accounting policy provides for this transfer: the surplus is therefore realised at the date the licence is disposed of (IAS 38, para. 87). Rule to remember: on disposal of the asset, the revaluation surplus is realised and can be transferred.","es":""}},{"id":"D","text":{"fr":"","en":"They are recognised as a decrease in other comprehensive income for the period, against the result on disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"The transfer goes directly from the revaluation surplus to retained earnings, without passing through profit or loss (IAS 38, para. 87): it is not an offsetting entry against the result on disposal either. Rule to remember: the transfer is between two equity items. Effect: profit or loss for the period is not changed.","es":""}}]},"scope":"PROFESSIONAL_ONLY"},{"key":"QST.IAS38.000468","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000468","tested_point":"QST.IAS38.000468","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"contractual-rights-rule"},"references":["IAS 38 §96","IAS 38 §94"],"exercise":{"prompt":{"fr":"","en":"Fréjanel holds a 10-year operating licence for a port terminal, renewable once for 10 years with the approval of the port authority, for a small administrative fee. Management intends to apply for renewal. Under what condition may Fréjanel use a useful life of 20 years?","es":""},"explanation":{"fr":"","en":"A renewal period is included in the useful life only if there is evidence supporting renewal without significant cost (IAS 38, para. 94). Indicators include evidence, possibly based on experience, that the rights will be renewed and, where renewal requires a third party's consent, that the third party will give it; evidence that the conditions will be satisfied; and a renewal cost that is not significant (IAS 38, para. 96).","es":""},"common_error":{"fr":"","en":"Including a renewal period in the useful life on the basis of management's intention, without supporting evidence.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Management's intention to apply for renewal is enough, provided that the renewal fee is small.","es":""},"correct":false,"feedback":{"fr":"","en":"Management's intention to request renewal is not enough, even if the fees are low: renewal periods are included only if there is evidence of renewal without significant cost, including the authority's agreement (IAS 38, paras. 94 and 96). Rule to remember: a useful life that includes a renewal rests on supporting evidence, not on intention.","es":""}},{"id":"B","text":{"fr":"","en":"There is evidence, possibly based on experience, that the authority will give its approval and that the conditions for renewal will be satisfied.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"None: a renewal period subject to a third party's approval is never included in the useful life, whatever evidence is available.","es":""},"correct":false,"feedback":{"fr":"","en":"A third party's agreement does not rule out taking the renewal period into account: if evidence establishes that the port authority will give it and that the conditions will be met, the renewal can be included (IAS 38, para. 96). Rule to remember: a third party's agreement is a point to be supported by evidence, not an obstacle in itself.","es":""}},{"id":"D","text":{"fr":"","en":"The renewal must have a significant cost, which would show that the renewed licence has real value to the entity and would justify including it in the useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the other way round: a significant renewal cost excludes the renewal period from the useful life, because it is in substance the cost of acquiring a new asset at the renewal date (IAS 38, para. 96). Here the administrative fees are low. Rule to remember: the renewal is included if it does not involve a significant cost.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000469","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.CONTRACTUAL_RIGHTS"],"dimension":"APPLICATION","context":"V1_QST.IAS38.000469","tested_point":"QST.IAS38.000469","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"contractual-rights-rule"},"references":["IAS 38 §96","IAS 38 §94"],"exercise":{"prompt":{"fr":"","en":"Arvenor acquires for 200,000 a 4-year licence to operate a mineral water spring. The licence can be renewed for a further 4 years, but renewal requires the payment of a fee of 180,000, which is significant compared with the benefits expected from the renewal. Arvenor intends to renew. Which useful life should be used and how should the renewal fee be analysed?","es":""},"explanation":{"fr":"","en":"The useful life of a contractual right includes the renewal period only if there is evidence supporting renewal without significant cost (IAS 38, para. 94). When the cost of renewal is significant compared with the expected benefits, it represents, in substance, the cost of acquiring a new asset at the renewal date (IAS 38, para. 96). The 200,000 is therefore amortised over 4 years, that is 50,000 a year.","es":""},"common_error":{"fr":"","en":"Amortising a contractual right over the initial period plus a costly renewal period because management intends to renew.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"8 years: the intention to renew justifies amortising the 200,000 over the total term of both periods.","es":""},"correct":false,"feedback":{"fr":"","en":"The intention to renew is not enough, and the renewal cost is significant: the renewal period is excluded from the useful life, which stays at 4 years (IAS 38, paras. 94 and 96). Amortising 200,000 over 8 years would wrongly cut the annual charge to 25,000 instead of 50,000. Rule to remember: a costly renewal does not lengthen the useful life of the current asset.","es":""}},{"id":"B","text":{"fr":"","en":"4 years; if the licence is renewed, the fee will represent the cost of acquiring a new asset at that date.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"8 years, adding the fee of 180,000 to the cost of the licence now, giving a depreciable amount of 380,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The fee of 180,000 has not yet been incurred: if the licence is renewed, it will be the cost of acquiring a new asset at the renewal date, not an addition to the cost of the current licence (IAS 38, para. 96). The current licence stays amortised over 4 years on 200,000. Rule to remember: a significant renewal cost is not added to the cost of the current asset.","es":""}},{"id":"D","text":{"fr":"","en":"An indefinite useful life, since the licence is renewable and Arvenor intends to keep it for the long term.","es":""},"correct":false,"feedback":{"fr":"","en":"The licence has a contractual term limited to 4 years and its renewal has a significant cost: the useful life is finite and does not exceed the term of the rights (IAS 38, para. 94). Renewable and kept for the long term does not mean indefinite life. Rule to remember: the useful life of a contractual right does not exceed the term of that right, significant renewals excluded.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000470","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.METHOD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000470","tested_point":"QST.IAS38.000470","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000014","section_id":"method-rule"},"references":["IAS 38 §99"],"exercise":{"prompt":{"fr":"","en":"Nérédis uses a patent on a moulding process to manufacture its finished products. The annual amortisation of the patent amounts to 30,000. At the reporting date, some of the products manufactured during the year are still in inventory. How is the amortisation of the patent accounted for?","es":""},"explanation":{"fr":"","en":"Amortisation is normally recognised in profit or loss. However, when the benefits of an intangible asset are absorbed in producing other assets, the charge forms part of the cost of those assets: the amortisation of an intangible asset used in production is included in the cost of inventories under IAS 2 (IAS 38, para. 99). The part relating to products still in inventory is therefore included in their carrying amount at the reporting date.","es":""},"common_error":{"fr":"","en":"Expensing amortisation of a production patent although the products made are still in stock.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is always recognised immediately as an expense, since the amortisation of an intangible asset can never be included in the cost of another asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The charge is not necessarily expensed immediately: when the economic benefits of an intangible asset are consumed in producing other assets, the charge is part of the cost of those assets (IAS 38, para. 99). For Nérédis, the 30,000 charge on the moulding patent goes into the cost of the products made. Rule to remember: amortisation of an intangible asset used in production is included in the cost of inventories.","es":""}},{"id":"B","text":{"fr":"","en":"It is included in the cost of the products manufactured under IAS 2 and reaches profit or loss when those products are sold.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is suspended as long as the products manufactured using the patent have not been sold.","es":""},"correct":false,"feedback":{"fr":"","en":"Amortisation is not suspended until the products are sold: it is calculated normally, then included in the cost of the products made (IAS 38, para. 99) and reaches profit or loss when they are sold. Rule to remember: amortisation is not stopped; its charge is placed in the cost of the products.","es":""}},{"id":"D","text":{"fr":"","en":"It is recognised in other comprehensive income, because it does not reflect consumption during the period.","es":""},"correct":false,"feedback":{"fr":"","en":"Amortisation is in principle recognised in profit or loss; when it is included in the cost of other assets, it follows the cost of inventories and not other comprehensive income (IAS 38, para. 99). It reflects consumption of economic benefits, hence a production cost. Rule to remember: amortisation goes to profit or loss or into the cost of other assets, not into other comprehensive income.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000471","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000471","tested_point":"QST.IAS38.000471","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"residual-rule"},"references":["IAS 38 §102"],"exercise":{"prompt":{"fr":"","en":"True or false? Once set at initial recognition, the residual value of an intangible asset with a finite useful life can no longer be changed, so as to preserve the consistency of the amortisation plan.","es":""},"explanation":{"fr":"","en":"False. Approach: the residual value is not frozen at initial recognition: it is reviewed at least at each year-end, and a change in residual value is a change in accounting estimate, accounted for under IAS 8 (IAS 38, para. 102). Trap: confusing consistency of the amortisation pattern with immutability of estimates. Rule to remember: the residual value is reviewed at least at each year-end, and changing it is a change in accounting estimate (IAS 38, para. 102).","es":""},"common_error":{"fr":"","en":"Treating the residual value as permanently fixed at initial recognition.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000472","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000472","tested_point":"QST.IAS38.000472","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"residual-rule"},"references":["IAS 38 §103","IAS 38 §100"],"exercise":{"prompt":{"fr":"","en":"Sylvarène amortises a broadcasting licence that a third party has contractually committed to buy back from it at the end of its useful life. At 1 January 20X4, the carrying amount of the licence is {opening_carrying_amount} and its remaining useful life is {remaining_life} years. On that date, the buy-back commitment is renegotiated and the revised residual value is {residual_value}. No other event affects the licence in 20X4. Calculate the amortisation charge for 20X4 and the carrying amount of the licence at 31 December 20X4.","es":""},"explanation":{"fr":"","en":"Approach: a non-zero residual value is allowed because a third party has committed to buy the licence (IAS 38, para. 100). Revised to 140,000, it exceeds the carrying amount of 130,000: the charge is nil as long as the residual value does not fall back below the carrying amount (IAS 38, para. 103). The carrying amount therefore stays at 130,000 at 31 December 20X4; it is not raised to the residual value. Trap: amortising as if the residual value were nil, or raising the carrying amount to 140,000. Rule to remember: if the residual value equals or exceeds the carrying amount, the charge is nil (IAS 38, para. 103). Effect: no amortisation charge in 20X4 for this licence.","es":""},"common_error":{"fr":"","en":"Calculating a negative charge and increasing the carrying amount to 140,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_carrying_amount","value":"130000","unit":"EUR"},{"id":"remaining_life","value":"3","unit":"YEARS"},{"id":"residual_value","value":"140000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount at 1 January 20X4","es":""},"value":"130000","unit":"EUR"},{"label":{"fr":"","en":"Remaining useful life (years)","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Revised residual value","es":""},"value":"140000","unit":"EUR"}],"steps":[{"id":"AMORTISATION_20X4","label":{"fr":"","en":"Amortisation charge for 20X4","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"CLOSING_CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount at 31 December 20X4","es":""},"answer":130000,"tolerance":0,"unit":"EUR"}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000473","standard_id":"IAS38","concept_ids":["IAS38.AMORTISATION.RESIDUAL_VALUE","IAS38.AMORTISATION.REVIEW"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000473","tested_point":"QST.IAS38.000473","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000015","section_id":"residual-rule"},"references":["IAS 38 §101","IAS 38 §102","IAS 38 §104"],"exercise":{"prompt":{"fr":"","en":"Corbanne acquired for {cost} an operating right amortised on a straight-line basis over {useful_life} years. As a third party has committed to buy back the right at the end of that period, Corbanne used a residual value of {initial_residual_value}. After {years_elapsed} years of amortisation, the buy-back commitment is renegotiated and the residual value is reduced to {revised_residual_value}; the total useful life and the amortisation method are unchanged. Calculate the carrying amount of the right at the date of the revision and the new annual amortisation charge.","es":""},"explanation":{"fr":"","en":"Approach: the depreciable amount is cost less residual value (IAS 38, para. 101): initial charge (500,000 − 100,000) / 10 = 40,000; carrying amount after 4 years: 500,000 − 4 × 40,000 = 340,000. Revising the residual value is a change in accounting estimate (IAS 38, para. 102), like revisions of life or method (IAS 38, para. 104): it applies going forward, without restating past charges. New charge: (340,000 − 52,000) / 6 = 48,000. Trap: recalculating from the original cost. Rule to remember: a revision of the residual value is a change in accounting estimate applied going forward (IAS 38, paras. 102 and 104).","es":""},"common_error":{"fr":"","en":"Recalculating from the start, (500,000 − 52,000) / 10 = 44,800, as if the revision were retrospective.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"500000","unit":"EUR"},{"id":"useful_life","value":"10","unit":"YEARS"},{"id":"initial_residual_value","value":"100000","unit":"EUR"},{"id":"years_elapsed","value":"4","unit":"YEARS"},{"id":"revised_residual_value","value":"52000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Acquisition cost of the right","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Total useful life (years)","es":""},"value":"10","unit":"YEARS"},{"label":{"fr":"","en":"Initial residual value","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Years of amortisation elapsed","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Revised residual value","es":""},"value":"52000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount at the date of the revision","es":""},"answer":340000,"tolerance":0,"unit":"EUR"},{"id":"NEW_ANNUAL_AMORTISATION","label":{"fr":"","en":"New annual amortisation charge","es":""},"answer":48000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT","meaning":{"fr":"","en":"Carrying amount at the date of the revision","es":""},"expression":"a - b * ((a - c) / d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Acquisition cost of the right","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Years of amortisation elapsed","es":""},"value":4,"unit":"YEARS"},{"symbol":"c","meaning":{"fr":"","en":"Initial residual value","es":""},"value":100000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Total useful life (years)","es":""},"value":10,"unit":"YEARS"}],"result":340000,"unit":"EUR"},{"step":"NEW_ANNUAL_AMORTISATION","meaning":{"fr":"","en":"New annual amortisation charge","es":""},"expression":"(a - b) / 6","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at the date of the revision","es":""},"value":340000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Revised residual value","es":""},"value":52000,"unit":"EUR"}],"result":48000,"unit":"EUR"}],"rationale":{"fr":"","en":"a revision of the residual value is a change in accounting estimate applied going forward (IAS 38, paras. 102 and 104).","es":""},"references":["REF.IAS38.101","REF.IAS38.102","REF.IAS38.104"]}},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000474","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000474","tested_point":"QST.IAS38.000474","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §114"],"exercise":{"prompt":{"fr":"","en":"Brévalis sells a brand to a competitor. The contract is signed on 15 November 20X1; according to the analysis performed under IFRS 15, the buyer obtains control of the brand on 10 January 20X2, the date on which the rights are actually transferred. The price is received on 28 February 20X2. Brévalis has a reporting date of 31 December 20X1 and the brand has not been classified as held for sale. On which date is the brand derecognised?","es":""},"explanation":{"fr":"","en":"The date of disposal of an intangible asset is the date on which the recipient obtains control of it, determined under the IFRS 15 requirements on satisfying a performance obligation (IAS 38, para. 114). Neither the signing of the contract nor the receipt of the price sets this date: the brand is derecognised on 10 January 20X2 and is still an asset at 31 December 20X1.","es":""},"common_error":{"fr":"","en":"Derecognising the brand at the contract signing date or at the year-end instead of the date control is transferred.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On 15 November 20X1, the date on which the parties sign the contract for the sale of the brand.","es":""},"correct":false,"feedback":{"fr":"","en":"Signing the contract does not transfer control of the brand to the buyer: the date of disposal is the date the recipient obtains control, determined under the IFRS 15 rules (IAS 38, para. 114). Here, control is transferred on 10 January 20X2. Rule to remember: derecognise at the date control is transferred, not at the date of signing.","es":""}},{"id":"B","text":{"fr":"","en":"On 31 December 20X1, since the sale was concluded before the end of the reporting period.","es":""},"correct":false,"feedback":{"fr":"","en":"The year-end is not a disposal event: the facts place the transfer of control of the brand in 20X2, and the date of disposal is the date the buyer obtains control (IAS 38, para. 114). At 31 December 20X1, the brand is therefore still an asset. Rule to remember: a sale concluded before the year-end does not derecognise the asset until control is transferred. Effect: the brand is presented in the balance sheet at 31 December 20X1.","es":""}},{"id":"C","text":{"fr":"","en":"On 10 January 20X2.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"On 28 February 20X2, the date on which Brévalis receives the selling price of the brand.","es":""},"correct":false,"feedback":{"fr":"","en":"Collecting the price on 28 February 20X2 has no effect on the date of disposal: it is the date the buyer obtains control of the brand, that is 10 January 20X2 (IAS 38, para. 114). Rule to remember: the payment date does not set the derecognition date.","es":""}}]},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000475","standard_id":"IAS38","concept_ids":["IAS38.DERECOGNITION.GAIN_LOSS"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000475","tested_point":"QST.IAS38.000475","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000017","section_id":"rule-triggers"},"references":["IAS 38 §116","IAS 38 §113"],"exercise":{"prompt":{"fr":"","en":"Lorvane sells a patent whose carrying amount is {carrying_amount} at the date control passes to the buyer. The price of {nominal_price} is payable {credit_period} months after that date, with no costs of disposal. According to the analysis performed under IFRS 15, this payment term is a significant financing component, and the appropriate discount rate is {discount_rate}% a year (discounting over a single period); Lorvane does not apply the IFRS 15 practical expedient for terms of one year or less. The patent has never been classified as held for sale. Calculate the consideration included in the result on disposal and the gain on disposal.","es":""},"explanation":{"fr":"","en":"Approach: the consideration included in the gain or loss on derecognition follows the IFRS 15 rules on the transaction price (IAS 38, para. 116): since the financing component is significant, the price is discounted, 330,000 / 1.10 = 300,000. Gain: 300,000 − 260,000 = 40,000, in profit or loss and outside revenue (IAS 38, para. 113). The 30,000 difference between the nominal price and the discounted consideration is interest income, recognised over the credit period. Trap: comparing the nominal price with the carrying amount (gain of 70,000). Rule to remember: the consideration in the result on disposal is determined under the IFRS 15 rules on the transaction price (IAS 38, para. 116). Effect: 40,000 of gain in profit or loss, 30,000 of interest later.","es":""},"common_error":{"fr":"","en":"Using the nominal price and finding a gain of 70,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"260000","unit":"EUR"},{"id":"nominal_price","value":"330000","unit":"EUR"},{"id":"credit_period","value":"12","unit":"MONTHS"},{"id":"discount_rate","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Carrying amount of the patent at the date control passes","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Nominal price payable on deferred terms","es":""},"value":"330000","unit":"EUR"},{"label":{"fr":"","en":"Payment term (months)","es":""},"value":"12","unit":"MONTHS"},{"label":{"fr":"","en":"Annual discount rate (%)","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"CONSIDERATION","label":{"fr":"","en":"Consideration included in the result on disposal","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"GAIN_ON_DISPOSAL","label":{"fr":"","en":"Gain on disposal","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CONSIDERATION","meaning":{"fr":"","en":"Consideration included in the result on disposal","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Nominal price payable on deferred terms","es":""},"value":330000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual discount rate (%)","es":""},"value":10,"unit":"PERCENT"}],"result":300000,"unit":"EUR","rationale":{"fr":"","en":"Approach: the consideration included in the gain or loss on derecognition follows the IFRS 15 rules on the transaction price (IAS 38, para. 116): since the financing component is significant, the price is discounted, 330,000 / 1.10 = 300,000.","es":""}},{"step":"GAIN_ON_DISPOSAL","meaning":{"fr":"","en":"Gain on disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration included in the result on disposal","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the patent at the date control passes","es":""},"value":260000,"unit":"EUR"}],"result":40000,"unit":"EUR","rationale":{"fr":"","en":"Gain: 300,000 − 260,000 = 40,000, in profit or loss and outside revenue (IAS 38, para. 113).","es":""}}],"rationale":{"fr":"","en":"the consideration in the result on disposal is determined under the IFRS 15 rules on the transaction price (IAS 38, para. 116). Effect: 40,000 of gain in profit or loss, 30,000 of interest later.","es":""},"references":["REF.IAS38.116","REF.IAS38.113"]}},"scope":"OPTIONAL_STUDENT"},{"key":"QST.IAS38.000476","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.CLASS_INFORMATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000476","tested_point":"QST.IAS38.000476","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-by-class"},"references":["IAS 38 §122"],"exercise":{"prompt":{"fr":"","en":"Altamir is preparing the note on its intangible assets, all measured using the cost model. In addition to the reconciliation of carrying amounts by class, which information does IAS 38 require it to disclose when the corresponding situations exist?","es":""},"explanation":{"fr":"","en":"In addition to the information by class, the entity discloses in particular: the description, carrying amount and remaining amortisation period of any individually material intangible asset; for assets acquired by way of a grant and initially recognised at fair value, that fair value, their carrying amount and the subsequent measurement model; the existence and carrying amount of assets subject to restrictions and the carrying amount of those pledged as security for liabilities; and the amount of contractual commitments for acquisitions (IAS 38, para. 122). Neither the fair value of assets measured at cost nor future budgets are among these requirements.","es":""},"common_error":{"fr":"","en":"Adding the fair value of all assets measured at cost as if it were required.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fair value of each intangible asset measured at cost.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 38 does not require disclosing the fair value of each intangible asset measured at cost: paragraph 122 covers in particular significant assets, assets received by government grant, restrictions and pledges, and acquisition commitments (IAS 38, para. 122). Rule to remember: the fair value of an asset measured at cost is not in the list in paragraph 122.","es":""}},{"id":"B","text":{"fr":"","en":"The description, carrying amount and remaining amortisation period of an individually material intangible asset.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"For an asset acquired by way of a government grant and initially recognised at fair value: that initial fair value, its carrying amount and the subsequent measurement model.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The budgeted advertising expenditure for the next three years.","es":""},"correct":false,"feedback":{"fr":"","en":"A budget for advertising expenditure is forward-looking data unrelated to the disclosures required by paragraph 122 (significant assets, assets received by grant, restrictions and pledges, acquisition commitments) (IAS 38, para. 122). Rule to remember: the note describes existing assets and commitments, not budgets.","es":""}},{"id":"E","text":{"fr":"","en":"The carrying amount of intangible assets pledged as security for liabilities.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The amount of contractual commitments for the acquisition of intangible assets.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000477","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.CLASS_INFORMATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000477","tested_point":"QST.IAS38.000477","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-by-class"},"references":["IAS 38 §122"],"exercise":{"prompt":{"fr":"","en":"Maurévin has pledged a transport licence, recognised at a carrying amount of 450,000, as security for a bank loan. It continues to operate the licence. What information does IAS 38 require for this licence?","es":""},"explanation":{"fr":"","en":"The entity discloses the carrying amount of intangible assets pledged as security for liabilities, as well as the existence and carrying amount of those whose title is restricted (IAS 38, para. 122). Maurévin therefore discloses in the notes the carrying amount of 450,000 of the pledged licence; the pledge does not change its recognition.","es":""},"common_error":{"fr":"","en":"Believing a pledged licence that is still operated requires no disclosure.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None, since Maurévin remains the holder of the licence and continues to operate it normally.","es":""},"correct":false,"feedback":{"fr":"","en":"Remaining the holder of the licence and operating it normally does not remove the need to disclose: IAS 38 requires the carrying amount of intangible assets pledged as security for liabilities to be disclosed (IAS 38, para. 122). Rule to remember: keeping the asset on the balance sheet does not remove the disclosure about the pledge. Effect: the note shows that 450,000 of assets secure the loan.","es":""}},{"id":"B","text":{"fr":"","en":"The carrying amount of the licence pledged as security for liabilities.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No information, but the licence must be derecognised and the loan presented net of its value.","es":""},"correct":false,"feedback":{"fr":"","en":"A licence pledged as security is not removed from assets and the loan is not shown net of its value: the pledge does not change the accounting, it calls for a disclosure in the notes, the carrying amount of the pledged asset (IAS 38, para. 122). Rule to remember: a pledge given is disclosed in the notes; it does not offset the debt.","es":""}},{"id":"D","text":{"fr":"","en":"Only the amount of the secured loan, since security arrangements are dealt with exclusively by the standards on financial instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"Other standards may require information about the loan, but IAS 38 also requires the carrying amount of the pledged asset, that is 450,000 for the licence (IAS 38, para. 122). Giving the amount of the secured loan is not enough. Rule to remember: the note on intangible assets gives the carrying amount of assets pledged as security.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000478","standard_id":"IAS38","concept_ids":["IAS38.DISCLOSURE.RD_EXPENSE"],"dimension":"CALCULATION","context":"V1_QST.IAS38.000478","tested_point":"QST.IAS38.000478","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000018","section_id":"rule-rd-expense"},"references":["IAS 38 §126","IAS 38 §127"],"exercise":{"prompt":{"fr":"","en":"During 20X3, Ilvanor incurred the following expenditure: salaries of its laboratory researchers, {research_salaries}; materials consumed in research work, {research_materials}; expenditure directly attributable to a development project incurred before the recognition criteria were met, {pre_criteria_development}; general administrative overheads of the head office, not directly attributable to these activities, {general_overheads}; expenditure on the same project incurred after the criteria were met and recognised as an asset, {capitalised_development}. What amount of research and development expenditure recognised as an expense should Ilvanor disclose for 20X3?","es":""},"explanation":{"fr":"","en":"Approach: include all expenditure directly attributable to research or development activities and recognised as an expense, the nature of the costs being determined by reference to paragraphs 66 and 67 (IAS 38, para. 127). Salaries, research materials and development before the criteria are included; general administrative overheads not directly attributable are excluded, as is expenditure recorded as an asset. Amount: 180,000 + 40,000 + 70,000 = 290,000 (IAS 38, para. 126). Trap: adding the general overheads or the capitalised development. Rule to remember: the notes give the total R&D expensed, that is directly attributable expenditure not recorded as an asset (IAS 38, paras. 126 and 127).","es":""},"common_error":{"fr":"","en":"Adding the general administrative overheads and finding 340,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"research_salaries","value":"180000","unit":"EUR"},{"id":"research_materials","value":"40000","unit":"EUR"},{"id":"pre_criteria_development","value":"70000","unit":"EUR"},{"id":"general_overheads","value":"50000","unit":"EUR"},{"id":"capitalised_development","value":"120000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Researchers' salaries","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Materials consumed in research","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Development incurred before the recognition criteria were met","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"General administrative overheads not directly attributable","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Development recognised as an asset after the criteria were met","es":""},"value":"120000","unit":"EUR"}],"steps":[{"id":"RD_EXPENSE","label":{"fr":"","en":"R&D expenditure recognised as an expense to be disclosed","es":""},"answer":290000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"RD_EXPENSE","meaning":{"fr":"","en":"R&D expenditure recognised as an expense to be disclosed","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Researchers' salaries","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Materials consumed in research","es":""},"value":40000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Development incurred before the recognition criteria were met","es":""},"value":70000,"unit":"EUR"}],"result":290000,"unit":"EUR"}],"rationale":{"fr":"","en":"the notes give the total R&D expensed, that is directly attributable expenditure not recorded as an asset (IAS 38, paras. 126 and 127).","es":""},"references":["REF.IAS38.126","REF.IAS38.127"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000479","standard_id":"IAS38","concept_ids":["IAS38.USEFUL_LIFE.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000479","tested_point":"QST.IAS38.000479","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000013","section_id":"finite-indefinite-rule"},"references":["IAS 38 §91"],"exercise":{"prompt":{"fr":"","en":"The management of Celmont considers that its beverage brand, acquired three years ago, has an indefinite useful life. Which statement about this assessment is correct?","es":""},"explanation":{"fr":"","en":"An indefinite useful life does not mean an unlimited one. It reflects only the future maintenance expenditure required to maintain the asset at the standard of performance assessed when estimating the useful life, and the entity's ability and intention to incur it; it cannot rely on planned expenditure in excess of that level (IAS 38, para. 91).","es":""},"common_error":{"fr":"","en":"Confusing indefinite useful life with infinite life.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Using an indefinite useful life amounts to considering that the brand will provide benefits forever, with no time limit at all.","es":""},"correct":false,"feedback":{"fr":"","en":"Indefinite does not mean infinite: an indefinite useful life means that no limit is foreseeable today to the period over which net cash flows are generated, not that the brand will provide benefits with no limit in time (IAS 38, paras. 88 and 91). Rule to remember: indefinite life does not mean infinite life.","es":""}},{"id":"B","text":{"fr":"","en":"The assessment may rely on planned future investment intended to raise the brand's reputation above its current level.","es":""},"correct":false,"feedback":{"fr":"","en":"Planned future investments to raise the brand's reputation beyond its current level cannot support an indefinite life: it takes into account only the maintenance expenditure needed to keep the asset at the standard of performance assessed (IAS 38, para. 91). Rule to remember: the assessment rests on maintenance expenditure at the assessed performance level, not on planned enhancement expenditure.","es":""}},{"id":"C","text":{"fr":"","en":"Only the maintenance expenditure needed to keep the brand at the standard of performance assessed, which Celmont is able and intends to incur, is taken into account.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Future maintenance expenditure is irrelevant to the assessment: only the absence of a legal expiry date for the brand matters.","es":""},"correct":false,"feedback":{"fr":"","en":"Future maintenance expenditure enters the assessment, together with the entity's ability and intention to incur it: the absence of a legal expiry date is not enough to conclude on an indefinite life (IAS 38, para. 91). Rule to remember: the assessment takes into account the maintenance expenditure needed and the ability and intention to incur it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000480","standard_id":"IAS38","concept_ids":["IAS38.DEFINITIONS.CONTROL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000480","tested_point":"QST.IAS38.000480","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000002","section_id":"control"},"references":["IAS 38 §14","IAS 38 §13"],"exercise":{"prompt":{"fr":"","en":"Ostravel has developed unpatented technical know-how for treating alloys. Its engineers are bound by a legal duty of confidentiality, the breach of which is sanctioned. From the sole standpoint of control, does Ostravel control the future economic benefits expected from this know-how?","es":""},"explanation":{"fr":"","en":"An entity controls an asset when it can obtain the future benefits from it and restrict the access of others to them; legal enforceability is not a necessary condition (IAS 38, para. 13). Technical knowledge is controlled when it is protected, for example by copyright, a lawful restraint-of-trade agreement or a legal duty of confidentiality on employees (IAS 38, para. 14). Control is only one element: recognition also requires the other conditions of the definition and the recognition criteria.","es":""},"common_error":{"fr":"","en":"Requiring a patent or a registered title of ownership before accepting control of know-how.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, because only a registered patent can give control over technical knowledge.","es":""},"correct":false,"feedback":{"fr":"","en":"Technical knowledge can be protected in ways other than a patent: it is controlled when it is protected, for example by copyright, a lawful restraint of trade agreement or a legal duty of confidentiality on employees (IAS 38, para. 14). Rule to remember: control of technical knowledge can result from a legal duty of confidentiality.","es":""}},{"id":"B","text":{"fr":"","en":"Yes, because the employees' legal duty of confidentiality protects the know-how and allows access by others to be restricted.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes, because Ostravel trained its engineers itself, which ensures lasting command of their technical skills.","es":""},"correct":false,"feedback":{"fr":"","en":"Having trained the engineers itself does not give control over their skills: it is the protection of the knowledge, here the legal duty of confidentiality, that makes it possible to restrict third parties' access (IAS 38, para. 14). Rule to remember: control requires the power to restrict access to the benefits, not having trained the people.","es":""}},{"id":"D","text":{"fr":"","en":"No, because control always requires a registered ownership right over the asset itself, enforceable against all third parties.","es":""},"correct":false,"feedback":{"fr":"","en":"Control generally results from legally enforceable rights, but legal enforceability is not a necessary condition: control can be shown in other ways (IAS 38, para. 13). A registered title of ownership is therefore not required. Rule to remember: control can be shown by means other than registered rights.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS38.000481","standard_id":"IAS38","concept_ids":["IAS38.INTERNAL_GENERATION.INTERNAL_GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS38.000481","tested_point":"QST.IAS38.000481","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS38","lesson_id":"LS.IAS38.000004","section_id":"internal-goodwill-rule"},"references":["IAS 38 §50","IAS 38 §48"],"exercise":{"prompt":{"fr":"","en":"An independent valuer values Ravenel at 12,000,000, whereas the carrying amount of its identifiable net assets is 8,000,000. The chief executive proposes recognising the difference of 4,000,000 as an asset in Ravenel's statement of financial position. Which answer complies with IAS 38?","es":""},"explanation":{"fr":"","en":"Internally generated goodwill is not recognised as an asset (IAS 38, para. 48). The difference between the value of the entity and the carrying amount of its identifiable net assets may reflect many factors; it does not represent the cost of intangible assets controlled by the entity and therefore cannot be recognised (IAS 38, para. 50). The reliability of the valuer's measurement makes no difference.","es":""},"common_error":{"fr":"","en":"Recording as an asset the difference between an entity's value and its carrying amount as internally generated goodwill.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise the 4,000,000 as internally generated goodwill, the independent valuer's report providing a reliable measurement basis.","es":""},"correct":false,"feedback":{"fr":"","en":"Internally generated goodwill is not recognised as an asset (IAS 38, para. 48), and the quality of the expert's report does not change that: the difference does not represent the cost of intangible assets controlled by the entity (IAS 38, para. 50). Rule to remember: internally generated goodwill is not recorded as an asset, even with a reliable valuation.","es":""}},{"id":"B","text":{"fr":"","en":"Allocate the 4,000,000 to Ravenel's brands and customer base, then recognise them as amortised intangible assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Allocating the difference between brands and customers assumes identified, controlled assets whose cost it would represent, which is not the case: the difference between the entity's value and the carrying amount of its identifiable net assets can reflect many factors (IAS 38, para. 50). Rule to remember: this difference cannot be turned into amortised intangible assets.","es":""}},{"id":"C","text":{"fr":"","en":"Recognise nothing: this difference does not represent the cost of intangible assets controlled by Ravenel.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Recognise the 4,000,000 as a revaluation surplus in equity, with no effect on profit or loss for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"A revaluation surplus presupposes a recognised asset that is then revalued: here no asset exists, and the difference does not represent the cost of controlled intangible assets (IAS 38, para. 50). Internally generated goodwill is not recognised (IAS 38, para. 48). Rule to remember: recording the difference in equity does not get around the ban on recognising internal goodwill.","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IAS38.000001":"Research and development — Research: always an expense","LX.IAS38.000002":"Research and development — Research: always an expense","LX.IAS38.000003":"Research and development — The cost of the asset","LX.IAS38.000004":"Research and development — Development: six demonstrations, all required","LX.IAS38.000005":"Research and development — Two phases in every internal project","LX.IAS38.000006":"Research and development — Example: the life of a project over one year","LX.IAS38.000007":"Research and development — The cost of the asset","LX.IAS38.000008":"Research and development — Development: six demonstrations, all required","LX.IAS38.000009":"Research and development — Research: always an expense","LX.IAS38.000010":"Research and development — Worked example: the Atlas project","LX.IAS38.000011":"Research and development — Research: always an expense","LX.IAS38.000012":"Research and development — Documenting the file","LX.IAS38.000013":"Research and development — The cost of the asset","LX.IAS38.000014":"Research and development — Two phases in every internal project","LX.IAS38.000015":"Research and development — The cost of the asset","LX.IAS38.000016":"Research and development — The method, step by step","LX.IAS38.000017":"Research and development — Recurring mistakes","LX.IAS38.000018":"Research and development — The cost of the asset","LX.IAS38.000019":"Research and development — Worked example: the Atlas project","LX.IAS38.000020":"Research and development — Worked example: the Atlas project","LX.IAS38.000021":"Research and development — The Atlas project entries","LX.IAS38.000022":"Research and development — The Atlas project entries","LX.IAS38.000023":"Research and development — Professional judgment: when are the criteria really met?","LX.IAS38.000024":"Research and development — Professional judgment: when are the criteria really met?","LX.IAS38.000025":"What is an intangible asset? — Identifiability: two possible routes","LX.IAS38.000026":"What is an intangible asset? — Control: obtaining the benefits and excluding others","LX.IAS38.000027":"What is an intangible asset? — Common mistakes","LX.IAS38.000028":"What is an intangible asset? — Example: an SME reviews five items","LX.IAS38.000029":"What is an intangible asset? — Grey areas and professional judgement","LX.IAS38.000030":"Recognising an intangible asset: the two conditions — Step-by-step method","LX.IAS38.000031":"Recognising an intangible asset: the two conditions — Initial measurement at cost, and the case of a separate acquisition","LX.IAS38.000032":"Recognising an intangible asset: the two conditions — What about expenditure incurred after acquisition?","LX.IAS38.000033":"Recognising an intangible asset: the two conditions — Step-by-step method","LX.IAS38.000034":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 2: internally created brands, titles and customer lists","LX.IAS38.000035":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","LX.IAS38.000036":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 2: internally created brands, titles and customer lists","LX.IAS38.000037":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Example: purchased brand or created brand?","LX.IAS38.000038":"Objective and scope of IAS 38 — Example: the Nexalis group inventory","LX.IAS38.000039":"Objective and scope of IAS 38 — When another standard takes over","LX.IAS38.000040":"Objective and scope of IAS 38 — An intangible on a physical medium: which element dominates?","LX.IAS38.000041":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","LX.IAS38.000042":"Objective and scope of IAS 38 — Method: does IAS 38 apply to this item?","LX.IAS38.000043":"The vocabulary of IAS 38 — Consumption terms: useful life, residual value, depreciable amount, amortisation","LX.IAS38.000044":"The vocabulary of IAS 38 — Numerical example: Logivia’s planning licence","LX.IAS38.000045":"The vocabulary of IAS 38 — Research and development: two different stages","LX.IAS38.000046":"The vocabulary of IAS 38 — Points of attention","LX.IAS38.000047":"The vocabulary of IAS 38 — How the terms link together","LX.IAS38.000048":"Expenditure always recognised as an expense — The principle: an expense, save for two exceptions","LX.IAS38.000049":"Expenditure always recognised as an expense — Journal entries","LX.IAS38.000050":"Expenditure always recognised as an expense — Prepayments","LX.IAS38.000051":"Expenditure always recognised as an expense — Numerical example: Brava’s launch budget","LX.IAS38.000052":"Expenditure always recognised as an expense — Points of attention","LX.IAS38.000053":"Expenditure always recognised as an expense — When to recognise the expense: access to goods, receipt of services","LX.IAS38.000054":"Expenditure always recognised as an expense — Prepayments","LX.IAS38.000055":"Expenditure always recognised as an expense — A five-question method","LX.IAS38.000056":"Expenditure always recognised as an expense — Prepayments","LX.IAS38.000058":"The cost of a separately acquired intangible asset — What stays in expenses, and when capitalisation stops","LX.IAS38.000059":"The cost of a separately acquired intangible asset — Numeric example: the cost of Orbis’s licence","LX.IAS38.000060":"The cost of a separately acquired intangible asset — The acquisition entries","LX.IAS38.000061":"The cost of a separately acquired intangible asset — What stays in expenses, and when capitalisation stops","LX.IAS38.000063":"The cost of a separately acquired intangible asset — Deferred payment: the cash price, not the sum of the payments","LX.IAS38.000064":"The cost of a separately acquired intangible asset — Numeric example: a licence paid for in two years","LX.IAS38.000065":"The cost of a separately acquired intangible asset — The deferred payment entries","LX.IAS38.000066":"The cost of a separately acquired intangible asset — Professional judgement: the grey areas of cost","LX.IAS38.000067":"Intangible assets acquired in a business combination; acquired in-process R&D — The rule: fair value and recognition separately from goodwill","LX.IAS38.000068":"Intangible assets acquired in a business combination; acquired in-process R&D — The rule: fair value and recognition separately from goodwill","LX.IAS38.000069":"Intangible assets acquired in a business combination; acquired in-process R&D — After the acquisition: subsequent expenditure on the R&D project","LX.IAS38.000070":"Intangible assets acquired in a business combination; acquired in-process R&D — Numeric example: from the acquisition to the following year’s expenditure","LX.IAS38.000071":"Intangible assets acquired in a business combination; acquired in-process R&D — Professional judgement: acquired or internally generated, two paths","LX.IAS38.000072":"Intangible assets received by way of a government grant or through an exchange of assets — The rule: asset received by way of a government grant","LX.IAS38.000073":"Intangible assets received by way of a government grant or through an exchange of assets — The entries for the granted licence","LX.IAS38.000074":"Intangible assets received by way of a government grant or through an exchange of assets — Numeric example: an exchange of broadcasting rights","LX.IAS38.000075":"Intangible assets received by way of a government grant or through an exchange of assets — The exchange entries","LX.IAS38.000076":"Intangible assets received by way of a government grant or through an exchange of assets — Commercial substance and reliability of fair value","LX.IAS38.000077":"Intangible assets received by way of a government grant or through an exchange of assets — Professional judgement: substance, reliability, choice of option","LX.IAS38.000078":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","LX.IAS38.000079":"After recognition: cost model or revaluation model — Numerical example: a software licence over three years","LX.IAS38.000080":"After recognition: cost model or revaluation model — The licence entries","LX.IAS38.000081":"After recognition: cost model or revaluation model — The cost model: a three-term formula","LX.IAS38.000082":"After recognition: cost model or revaluation model — Points to watch","LX.IAS38.000083":"After recognition: cost model or revaluation model — Professional judgement: defining classes and supporting the choice","LX.IAS38.000084":"The revaluation model: active market, increases and decreases — A model that is allowed, but rarely possible","LX.IAS38.000085":"The revaluation model: active market, increases and decreases — Where do increases and decreases go?","LX.IAS38.000086":"The revaluation model: active market, increases and decreases — Where do increases and decreases go?","LX.IAS38.000087":"The revaluation model: active market, increases and decreases — The full quota entries","LX.IAS38.000088":"The revaluation model: active market, increases and decreases — After revaluation: transfer, loss of the market, impairment","LX.IAS38.000089":"The revaluation model: active market, increases and decreases — The model's conditions and limits","LX.IAS38.000090":"The revaluation model: active market, increases and decreases — After revaluation: transfer, loss of the market, impairment","LX.IAS38.000091":"Finite or indefinite useful life; contractual rights and renewals — How long will the asset be useful?","LX.IAS38.000092":"Finite or indefinite useful life; contractual rights and renewals — The factors to consider","LX.IAS38.000093":"Finite or indefinite useful life; contractual rights and renewals — Numerical example: the same licence, three useful lives","LX.IAS38.000094":"Finite or indefinite useful life; contractual rights and renewals — Contractual or legal rights: the right sets the ceiling","LX.IAS38.000095":"Finite or indefinite useful life; contractual rights and renewals — Four assets, four lines of reasoning","LX.IAS38.000096":"Finite or indefinite useful life; contractual rights and renewals — Step-by-step method","LX.IAS38.000097":"Finite or indefinite useful life; contractual rights and renewals — Professional judgement: defending a useful life","LX.IAS38.000098":"Amortising an intangible asset with a finite useful life — Numerical example: straight-line or units of production over four years","LX.IAS38.000099":"Amortising an intangible asset with a finite useful life — Numerical example: an incomplete first year","LX.IAS38.000100":"Amortising an intangible asset with a finite useful life — Entries: in profit or loss or in the cost of inventories","LX.IAS38.000101":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","LX.IAS38.000102":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","LX.IAS38.000103":"Amortising an intangible asset with a finite useful life — Revenue-based amortisation: presumed inappropriate","LX.IAS38.000104":"Amortising an intangible asset with a finite useful life — Revenue-based amortisation: presumed inappropriate","LX.IAS38.000105":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","LX.IAS38.000106":"Residual value and annual review of the period and method — Numerical example: the useful life is extended during the life of the asset","LX.IAS38.000107":"Residual value and annual review of the period and method — Numerical example: a residual value backed by a third party","LX.IAS38.000108":"Residual value and annual review of the period and method — Residual value: nil, with two exceptions","LX.IAS38.000109":"Residual value and annual review of the period and method — Estimating and reviewing residual value; when the charge becomes nil","LX.IAS38.000110":"Residual value and annual review of the period and method — Reviewing the period and method at each year end","LX.IAS38.000111":"Indefinite useful life: no amortisation, but a test every year — Numerical example: a brand tested, impaired, then amortised","LX.IAS38.000112":"Indefinite useful life: no amortisation, but a test every year — Entries","LX.IAS38.000113":"Indefinite useful life: no amortisation, but a test every year — Reviewing every year whether the life is still indefinite","LX.IAS38.000114":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","LX.IAS38.000115":"Indefinite useful life: no amortisation, but a test every year — Reviewing every year whether the life is still indefinite","LX.IAS38.000116":"Indefinite useful life: no amortisation, but a test every year — Reviewing every year whether the life is still indefinite","LX.IAS38.000117":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","LX.IAS38.000118":"Derecognising an intangible asset — Numerical example: selling a licence during the year","LX.IAS38.000119":"Derecognising an intangible asset — The disposal entries","LX.IAS38.000120":"Derecognising an intangible asset — Simple example: retiring a patent","LX.IAS38.000121":"Derecognising an intangible asset — The gain or loss: calculation and presentation","LX.IAS38.000122":"Derecognising an intangible asset — The unused asset: amortisation continues","LX.IAS38.000123":"Derecognising an intangible asset — Points of attention","LX.IAS38.000124":"Derecognising an intangible asset — Professional judgment: dates, consideration and 'dormant' assets","LX.IAS38.000125":"Disclosures about intangible assets — Numerical example: building the reconciliation","LX.IAS38.000126":"Disclosures about intangible assets — The reconciliation: explaining every movement","LX.IAS38.000127":"Disclosures about intangible assets — Targeted information: indefinite life, material assets, pledges, commitments","LX.IAS38.000128":"Disclosures about intangible assets — R&D expenditure recognised as an expense","LX.IAS38.000129":"Disclosures about intangible assets — Points of attention","LX.IAS38.000130":"Disclosures about intangible assets — Simple example: drafting the targeted information","LX.IAS38.000131":"Disclosures about intangible assets — Targeted information: indefinite life, material assets, pledges, commitments","LX.IAS38.000132":"What is an intangible asset? — Control: obtaining the benefits and excluding others","LX.IAS38.000133":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","LX.IAS38.000134":"Recognising an intangible asset: the two conditions — What about expenditure incurred after acquisition?","QST.IAS38.000001":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000002":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000003":"Recognising an intangible asset: the two conditions — The rule: two cumulative criteria","QST.IAS38.000004":"Research and development — Research: always an expense","QST.IAS38.000005":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","QST.IAS38.000006":"Research and development — Research: always an expense","QST.IAS38.000007":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000008":"Derecognising an intangible asset — The unused asset: amortisation continues","QST.IAS38.000009":"Recognising an intangible asset: the two conditions — What about expenditure incurred after acquisition?","QST.IAS38.000010":"The vocabulary of IAS 38 — The terms defined by IAS 38: overview","QST.IAS38.000011":"Expenditure always recognised as an expense — The principle: an expense, save for two exceptions","QST.IAS38.000012":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000013":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000014":"Residual value and annual review of the period and method — Residual value: nil, with two exceptions","QST.IAS38.000015":"Disclosures about intangible assets — The reconciliation: explaining every movement","QST.IAS38.000016":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","QST.IAS38.000017":"What is an intangible asset? — Control: obtaining the benefits and excluding others","QST.IAS38.000018":"Disclosures about intangible assets — R&D expenditure recognised as an expense","QST.IAS38.000019":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","QST.IAS38.000020":"Disclosures about intangible assets — Targeted information: indefinite life, material assets, pledges, commitments","QST.IAS38.000021":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000022":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 2: internally created brands, titles and customer lists","QST.IAS38.000023":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000024":"Disclosures about intangible assets — Information by class","QST.IAS38.000025":"Research and development — Development: six demonstrations, all required","QST.IAS38.000026":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000027":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000028":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000029":"Research and development — The cost of the asset","QST.IAS38.000030":"Research and development — The cost of the asset","QST.IAS38.000031":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000032":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000033":"Residual value and annual review of the period and method — Reviewing the period and method at each year end","QST.IAS38.000034":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000040":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000041":"The cost of a separately acquired intangible asset — What stays in expenses, and when capitalisation stops","QST.IAS38.000042":"Research and development — The cost of the asset","QST.IAS38.000043":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000044":"Intangible assets acquired in a business combination; acquired in-process R&D — The rule: fair value and recognition separately from goodwill","QST.IAS38.000045":"Research and development — Development: six demonstrations, all required","QST.IAS38.000046":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000047":"Finite or indefinite useful life; contractual rights and renewals — Contractual or legal rights: the right sets the ceiling","QST.IAS38.000051":"Objective and scope of IAS 38 — The objective of the standard","QST.IAS38.000052":"Objective and scope of IAS 38 — The objective of the standard","QST.IAS38.000053":"Objective and scope of IAS 38 — The objective of the standard","QST.IAS38.000054":"Objective and scope of IAS 38 — The objective of the standard","QST.IAS38.000055":"Objective and scope of IAS 38 — The objective of the standard","QST.IAS38.000056":"Objective and scope of IAS 38 — The objective of the standard","QST.IAS38.000057":"Objective and scope of IAS 38 — The objective of the standard","QST.IAS38.000058":"Objective and scope of IAS 38 — The objective of the standard","QST.IAS38.000059":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000060":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000061":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000062":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000063":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000064":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000065":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000066":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000067":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000068":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000069":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000070":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000071":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000072":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000073":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000074":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000075":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000076":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000077":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000078":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000079":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000080":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000081":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000082":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000083":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000084":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000085":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000086":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000087":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000088":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000089":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000090":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000091":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000092":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000093":"What is an intangible asset? — The definition and its three pillars","QST.IAS38.000094":"The vocabulary of IAS 38 — The terms defined by IAS 38: overview","QST.IAS38.000095":"The vocabulary of IAS 38 — The terms defined by IAS 38: overview","QST.IAS38.000096":"The vocabulary of IAS 38 — The terms defined by IAS 38: overview","QST.IAS38.000097":"The vocabulary of IAS 38 — The terms defined by IAS 38: overview","QST.IAS38.000098":"The vocabulary of IAS 38 — The terms defined by IAS 38: overview","QST.IAS38.000099":"The vocabulary of IAS 38 — The terms defined by IAS 38: overview","QST.IAS38.000100":"The vocabulary of IAS 38 — The terms defined by IAS 38: overview","QST.IAS38.000101":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000102":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000103":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000104":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000105":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000106":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000107":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000108":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000109":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000110":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000112":"What is an intangible asset? — Control: obtaining the benefits and excluding others","QST.IAS38.000113":"What is an intangible asset? — Control: obtaining the benefits and excluding others","QST.IAS38.000114":"What is an intangible asset? — Control: obtaining the benefits and excluding others","QST.IAS38.000115":"What is an intangible asset? — Control: obtaining the benefits and excluding others","QST.IAS38.000116":"What is an intangible asset? — Control: obtaining the benefits and excluding others","QST.IAS38.000117":"What is an intangible asset? — Control: obtaining the benefits and excluding others","QST.IAS38.000118":"What is an intangible asset? — Control: obtaining the benefits and excluding others","QST.IAS38.000119":"What is an intangible asset? — Control: obtaining the benefits and excluding others","QST.IAS38.000120":"What is an intangible asset? — Control: obtaining the benefits and excluding others","QST.IAS38.000123":"Recognising an intangible asset: the two conditions — The rule: two cumulative criteria","QST.IAS38.000124":"Recognising an intangible asset: the two conditions — The rule: two cumulative criteria","QST.IAS38.000125":"Recognising an intangible asset: the two conditions — The rule: two cumulative criteria","QST.IAS38.000126":"Recognising an intangible asset: the two conditions — The rule: two cumulative criteria","QST.IAS38.000127":"Recognising an intangible asset: the two conditions — The rule: two cumulative criteria","QST.IAS38.000128":"Recognising an intangible asset: the two conditions — The rule: two cumulative criteria","QST.IAS38.000129":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000130":"Research and development — Research: always an expense","QST.IAS38.000131":"Research and development — Development: six demonstrations, all required","QST.IAS38.000132":"What is an intangible asset? — Control: obtaining the benefits and excluding others","QST.IAS38.000134":"Recognising an intangible asset: the two conditions — What about expenditure incurred after acquisition?","QST.IAS38.000135":"Recognising an intangible asset: the two conditions — What about expenditure incurred after acquisition?","QST.IAS38.000136":"Recognising an intangible asset: the two conditions — What about expenditure incurred after acquisition?","QST.IAS38.000137":"Recognising an intangible asset: the two conditions — The rule: two cumulative criteria","QST.IAS38.000141":"Recognising an intangible asset: the two conditions — Initial measurement at cost, and the case of a separate acquisition","QST.IAS38.000142":"Recognising an intangible asset: the two conditions — Initial measurement at cost, and the case of a separate acquisition","QST.IAS38.000143":"Recognising an intangible asset: the two conditions — Initial measurement at cost, and the case of a separate acquisition","QST.IAS38.000144":"Recognising an intangible asset: the two conditions — Initial measurement at cost, and the case of a separate acquisition","QST.IAS38.000145":"Research and development — The cost of the asset","QST.IAS38.000146":"Recognising an intangible asset: the two conditions — Initial measurement at cost, and the case of a separate acquisition","QST.IAS38.000147":"Recognising an intangible asset: the two conditions — Initial measurement at cost, and the case of a separate acquisition","QST.IAS38.000148":"Recognising an intangible asset: the two conditions — Initial measurement at cost, and the case of a separate acquisition","QST.IAS38.000149":"Recognising an intangible asset: the two conditions — Initial measurement at cost, and the case of a separate acquisition","QST.IAS38.000150":"Recognising an intangible asset: the two conditions — Initial measurement at cost, and the case of a separate acquisition","QST.IAS38.000151":"Recognising an intangible asset: the two conditions — Initial measurement at cost, and the case of a separate acquisition","QST.IAS38.000152":"Research and development — The cost of the asset","QST.IAS38.000153":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000154":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000155":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000156":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000157":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000158":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000161":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000162":"The cost of a separately acquired intangible asset — What stays in expenses, and when capitalisation stops","QST.IAS38.000163":"The cost of a separately acquired intangible asset — What stays in expenses, and when capitalisation stops","QST.IAS38.000164":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000165":"The cost of a separately acquired intangible asset — What stays in expenses, and when capitalisation stops","QST.IAS38.000166":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000167":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000168":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000169":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000170":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000171":"The cost of a separately acquired intangible asset — The rule: what makes up cost","QST.IAS38.000172":"The cost of a separately acquired intangible asset — Deferred payment: the cash price, not the sum of the payments","QST.IAS38.000173":"The cost of a separately acquired intangible asset — Deferred payment: the cash price, not the sum of the payments","QST.IAS38.000174":"The cost of a separately acquired intangible asset — Deferred payment: the cash price, not the sum of the payments","QST.IAS38.000177":"The cost of a separately acquired intangible asset — Deferred payment: the cash price, not the sum of the payments","QST.IAS38.000178":"Intangible assets acquired in a business combination; acquired in-process R&D — The rule: fair value and recognition separately from goodwill","QST.IAS38.000179":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000180":"Intangible assets acquired in a business combination; acquired in-process R&D — The rule: fair value and recognition separately from goodwill","QST.IAS38.000181":"What is an intangible asset? — Identifiability: two possible routes","QST.IAS38.000182":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 2: internally created brands, titles and customer lists","QST.IAS38.000184":"Research and development — Research: always an expense","QST.IAS38.000185":"Intangible assets acquired in a business combination; acquired in-process R&D — After the acquisition: subsequent expenditure on the R&D project","QST.IAS38.000186":"Intangible assets acquired in a business combination; acquired in-process R&D — After the acquisition: subsequent expenditure on the R&D project","QST.IAS38.000189":"Intangible assets acquired in a business combination; acquired in-process R&D — After the acquisition: subsequent expenditure on the R&D project","QST.IAS38.000190":"Research and development — Development: six demonstrations, all required","QST.IAS38.000191":"Intangible assets received by way of a government grant or through an exchange of assets — The rule: asset received by way of a government grant","QST.IAS38.000192":"Intangible assets received by way of a government grant or through an exchange of assets — The rule: asset received by way of a government grant","QST.IAS38.000193":"Intangible assets received by way of a government grant or through an exchange of assets — The rule: asset received by way of a government grant","QST.IAS38.000197":"Intangible assets received by way of a government grant or through an exchange of assets — The rule: asset acquired through an exchange of assets","QST.IAS38.000198":"Intangible assets received by way of a government grant or through an exchange of assets — The rule: asset acquired through an exchange of assets","QST.IAS38.000199":"Intangible assets received by way of a government grant or through an exchange of assets — The rule: asset acquired through an exchange of assets","QST.IAS38.000202":"Intangible assets received by way of a government grant or through an exchange of assets — The rule: asset acquired through an exchange of assets","QST.IAS38.000203":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","QST.IAS38.000204":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","QST.IAS38.000205":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","QST.IAS38.000206":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","QST.IAS38.000207":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","QST.IAS38.000208":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","QST.IAS38.000209":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","QST.IAS38.000210":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","QST.IAS38.000211":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","QST.IAS38.000212":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","QST.IAS38.000213":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","QST.IAS38.000214":"Research and development — Research: always an expense","QST.IAS38.000215":"Research and development — Research: always an expense","QST.IAS38.000216":"Research and development — Research: always an expense","QST.IAS38.000217":"Research and development — Research: always an expense","QST.IAS38.000218":"Research and development — Research: always an expense","QST.IAS38.000219":"Research and development — Research: always an expense","QST.IAS38.000220":"Research and development — Research: always an expense","QST.IAS38.000221":"Research and development — Research: always an expense","QST.IAS38.000222":"Research and development — Research: always an expense","QST.IAS38.000223":"Research and development — Research: always an expense","QST.IAS38.000225":"Research and development — Research: always an expense","QST.IAS38.000226":"Research and development — Research: always an expense","QST.IAS38.000227":"Research and development — Research: always an expense","QST.IAS38.000228":"Research and development — Research: always an expense","QST.IAS38.000229":"Research and development — Research: always an expense","QST.IAS38.000234":"Research and development — Research: always an expense","QST.IAS38.000235":"Research and development — Development: six demonstrations, all required","QST.IAS38.000236":"Research and development — Development: six demonstrations, all required","QST.IAS38.000237":"Research and development — Development: six demonstrations, all required","QST.IAS38.000238":"Research and development — Development: six demonstrations, all required","QST.IAS38.000241":"Research and development — Development: six demonstrations, all required","QST.IAS38.000243":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 2: internally created brands, titles and customer lists","QST.IAS38.000244":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 2: internally created brands, titles and customer lists","QST.IAS38.000245":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 2: internally created brands, titles and customer lists","QST.IAS38.000246":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 2: internally created brands, titles and customer lists","QST.IAS38.000247":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 2: internally created brands, titles and customer lists","QST.IAS38.000248":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 2: internally created brands, titles and customer lists","QST.IAS38.000249":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 2: internally created brands, titles and customer lists","QST.IAS38.000250":"Research and development — Development: six demonstrations, all required","QST.IAS38.000251":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset","QST.IAS38.000252":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 2: internally created brands, titles and customer lists","QST.IAS38.000253":"Recognising an intangible asset: the two conditions — What about expenditure incurred after acquisition?","QST.IAS38.000254":"Research and development — The cost of the asset","QST.IAS38.000255":"Research and development — The cost of the asset","QST.IAS38.000256":"Research and development — The cost of the asset","QST.IAS38.000257":"Research and development — The cost of the asset","QST.IAS38.000258":"Research and development — The cost of the asset","QST.IAS38.000259":"Research and development — The cost of the asset","QST.IAS38.000260":"Research and development — The cost of the asset","QST.IAS38.000261":"Research and development — The cost of the asset","QST.IAS38.000264":"Research and development — The cost of the asset","QST.IAS38.000265":"Expenditure always recognised as an expense — The principle: an expense, save for two exceptions","QST.IAS38.000266":"Expenditure always recognised as an expense — The principle: an expense, save for two exceptions","QST.IAS38.000267":"Expenditure always recognised as an expense — The principle: an expense, save for two exceptions","QST.IAS38.000268":"Research and development — The cost of the asset","QST.IAS38.000269":"Expenditure always recognised as an expense — The principle: an expense, save for two exceptions","QST.IAS38.000270":"Research and development — The cost of the asset","QST.IAS38.000271":"Research and development — The cost of the asset","QST.IAS38.000274":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 2: internally created brands, titles and customer lists","QST.IAS38.000275":"Expenditure always recognised as an expense — The principle: an expense, save for two exceptions","QST.IAS38.000276":"Research and development — The cost of the asset","QST.IAS38.000277":"Research and development — The cost of the asset","QST.IAS38.000278":"Research and development — The cost of the asset","QST.IAS38.000279":"Research and development — The cost of the asset","QST.IAS38.000280":"Research and development — The cost of the asset","QST.IAS38.000281":"Research and development — The cost of the asset","QST.IAS38.000282":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000283":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000284":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000285":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000286":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000287":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000288":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000289":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000290":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000291":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000292":"Recognising an intangible asset: the two conditions — Initial measurement at cost, and the case of a separate acquisition","QST.IAS38.000293":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000294":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000295":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000296":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000297":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000298":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000299":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000300":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000301":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000302":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000303":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000304":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000305":"The revaluation model: active market, increases and decreases — The model's conditions and limits","QST.IAS38.000306":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000307":"After recognition: cost model or revaluation model — The choice rule: an accounting policy, by class","QST.IAS38.000308":"The revaluation model: active market, increases and decreases — The model's conditions and limits","QST.IAS38.000309":"The revaluation model: active market, increases and decreases — The model's conditions and limits","QST.IAS38.000311":"The revaluation model: active market, increases and decreases — Where do increases and decreases go?","QST.IAS38.000312":"The revaluation model: active market, increases and decreases — Where do increases and decreases go?","QST.IAS38.000313":"The revaluation model: active market, increases and decreases — Where do increases and decreases go?","QST.IAS38.000314":"The revaluation model: active market, increases and decreases — Where do increases and decreases go?","QST.IAS38.000317":"The revaluation model: active market, increases and decreases — Where do increases and decreases go?","QST.IAS38.000318":"The revaluation model: active market, increases and decreases — Where do increases and decreases go?","QST.IAS38.000319":"The revaluation model: active market, increases and decreases — Where do increases and decreases go?","QST.IAS38.000320":"The revaluation model: active market, increases and decreases — Where do increases and decreases go?","QST.IAS38.000323":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000324":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000325":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000326":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000327":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000328":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000329":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000330":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000332":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000333":"Finite or indefinite useful life; contractual rights and renewals — Contractual or legal rights: the right sets the ceiling","QST.IAS38.000334":"Finite or indefinite useful life; contractual rights and renewals — Contractual or legal rights: the right sets the ceiling","QST.IAS38.000335":"Finite or indefinite useful life; contractual rights and renewals — Contractual or legal rights: the right sets the ceiling","QST.IAS38.000336":"Finite or indefinite useful life; contractual rights and renewals — Contractual or legal rights: the right sets the ceiling","QST.IAS38.000337":"Finite or indefinite useful life; contractual rights and renewals — Contractual or legal rights: the right sets the ceiling","QST.IAS38.000338":"Finite or indefinite useful life; contractual rights and renewals — Contractual or legal rights: the right sets the ceiling","QST.IAS38.000340":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000341":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000342":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000343":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000344":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000345":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000346":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000347":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000348":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000349":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000350":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000351":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000352":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000353":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000354":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000355":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000356":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000359":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000360":"Amortising an intangible asset with a finite useful life — Revenue-based amortisation: presumed inappropriate","QST.IAS38.000361":"Amortising an intangible asset with a finite useful life — Revenue-based amortisation: presumed inappropriate","QST.IAS38.000362":"Amortising an intangible asset with a finite useful life — Revenue-based amortisation: presumed inappropriate","QST.IAS38.000363":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000364":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000366":"Residual value and annual review of the period and method — Residual value: nil, with two exceptions","QST.IAS38.000367":"Residual value and annual review of the period and method — Residual value: nil, with two exceptions","QST.IAS38.000368":"Residual value and annual review of the period and method — Residual value: nil, with two exceptions","QST.IAS38.000369":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000370":"Amortising an intangible asset with a finite useful life — When does amortisation start and when does it stop?","QST.IAS38.000371":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000372":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000373":"Residual value and annual review of the period and method — Reviewing the period and method at each year end","QST.IAS38.000374":"Residual value and annual review of the period and method — Reviewing the period and method at each year end","QST.IAS38.000375":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000376":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000377":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000378":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000379":"Residual value and annual review of the period and method — Reviewing the period and method at each year end","QST.IAS38.000380":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","QST.IAS38.000381":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","QST.IAS38.000382":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","QST.IAS38.000383":"Residual value and annual review of the period and method — Reviewing the period and method at each year end","QST.IAS38.000384":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","QST.IAS38.000385":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","QST.IAS38.000386":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000387":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000388":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","QST.IAS38.000390":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","QST.IAS38.000391":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","QST.IAS38.000392":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000393":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000394":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000395":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000399":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","QST.IAS38.000400":"Indefinite useful life: no amortisation, but a test every year — No amortisation, but an annual test and a test whenever there is an indication","QST.IAS38.000401":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000402":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000403":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000404":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000405":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000406":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000407":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000408":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000409":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000410":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000411":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000412":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000416":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000417":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000418":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000419":"Derecognising an intangible asset — The unused asset: amortisation continues","QST.IAS38.000420":"Derecognising an intangible asset — The unused asset: amortisation continues","QST.IAS38.000421":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000422":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000423":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000424":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000425":"Disclosures about intangible assets — Information by class","QST.IAS38.000426":"Disclosures about intangible assets — Information by class","QST.IAS38.000427":"Disclosures about intangible assets — Information by class","QST.IAS38.000428":"Disclosures about intangible assets — Information by class","QST.IAS38.000429":"Disclosures about intangible assets — Information by class","QST.IAS38.000430":"Disclosures about intangible assets — Information by class","QST.IAS38.000431":"Disclosures about intangible assets — Information by class","QST.IAS38.000432":"Disclosures about intangible assets — The reconciliation: explaining every movement","QST.IAS38.000433":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000434":"Disclosures about intangible assets — The reconciliation: explaining every movement","QST.IAS38.000435":"Disclosures about intangible assets — The reconciliation: explaining every movement","QST.IAS38.000436":"Disclosures about intangible assets — The reconciliation: explaining every movement","QST.IAS38.000437":"Disclosures about intangible assets — The reconciliation: explaining every movement","QST.IAS38.000438":"Disclosures about intangible assets — The reconciliation: explaining every movement","QST.IAS38.000439":"Disclosures about intangible assets — Targeted information: indefinite life, material assets, pledges, commitments","QST.IAS38.000440":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000441":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000442":"After recognition: cost model or revaluation model — The cost model: a three-term formula","QST.IAS38.000446":"Research and development — Research: always an expense","QST.IAS38.000447":"Research and development — Research: always an expense","QST.IAS38.000448":"Research and development — Research: always an expense","QST.IAS38.000449":"Research and development — Research: always an expense","QST.IAS38.000450":"Research and development — Research: always an expense","QST.IAS38.000451":"Research and development — Development: six demonstrations, all required","QST.IAS38.000452":"Research and development — The cost of the asset","QST.IAS38.000453":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000454":"Objective and scope of IAS 38 — The scope: all intangibles, except in four cases","QST.IAS38.000455":"Recognising an intangible asset: the two conditions — The rule: two cumulative criteria","QST.IAS38.000456":"Recognising an intangible asset: the two conditions — The rule: two cumulative criteria","QST.IAS38.000457":"Intangible assets received by way of a government grant or through an exchange of assets — The rule: asset acquired through an exchange of assets","QST.IAS38.000458":"Intangible assets received by way of a government grant or through an exchange of assets — The rule: asset acquired through an exchange of assets","QST.IAS38.000459":"Research and development — Research: always an expense","QST.IAS38.000460":"Research and development — Research: always an expense","QST.IAS38.000461":"Expenditure always recognised as an expense — The principle: an expense, save for two exceptions","QST.IAS38.000462":"Expenditure always recognised as an expense — The principle: an expense, save for two exceptions","QST.IAS38.000463":"Expenditure always recognised as an expense — The principle: an expense, save for two exceptions","QST.IAS38.000464":"The revaluation model: active market, increases and decreases — The model's conditions and limits","QST.IAS38.000465":"Research and development — The cost of the asset","QST.IAS38.000466":"The revaluation model: active market, increases and decreases — The model's conditions and limits","QST.IAS38.000467":"The revaluation model: active market, increases and decreases — The model's conditions and limits","QST.IAS38.000468":"Finite or indefinite useful life; contractual rights and renewals — Contractual or legal rights: the right sets the ceiling","QST.IAS38.000469":"Finite or indefinite useful life; contractual rights and renewals — Contractual or legal rights: the right sets the ceiling","QST.IAS38.000470":"Amortising an intangible asset with a finite useful life — The amortisation method and where the charge goes","QST.IAS38.000471":"Residual value and annual review of the period and method — Residual value: nil, with two exceptions","QST.IAS38.000472":"Residual value and annual review of the period and method — Residual value: nil, with two exceptions","QST.IAS38.000473":"Residual value and annual review of the period and method — Residual value: nil, with two exceptions","QST.IAS38.000474":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000475":"Derecognising an intangible asset — When to derecognise: the two events and the date of disposal","QST.IAS38.000476":"Disclosures about intangible assets — Information by class","QST.IAS38.000477":"Disclosures about intangible assets — Information by class","QST.IAS38.000478":"Disclosures about intangible assets — R&D expenditure recognised as an expense","QST.IAS38.000479":"Finite or indefinite useful life; contractual rights and renewals — 'Indefinite' does not mean 'infinite'","QST.IAS38.000480":"What is an intangible asset? — Control: obtaining the benefits and excluding others","QST.IAS38.000481":"Internally generated goodwill, brands and customer lists: what never reaches the balance sheet — Rule 1: internally generated goodwill is never an asset"}}