CERTYNEX IFRS ACADEMY

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?

All three items, since none has physical substance.

The licences intended for resale and the game engine licence; the deferred tax asset falls under IAS 12.

The game engine licence only; the licences intended for resale fall under IAS 2 and the deferred tax asset under IAS 12.

None, because a video game studio applies IAS 2 to all its intangible items.