- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 23. Long-lived Assets
- Subject 2. Intangible Assets
CFA Practice Question
If an intangible asset is acquired in a non-business-combination transaction, it should be ______.
B. capitalized
C. included as part of goodwill
A. expensed
B. capitalized
C. included as part of goodwill
Correct Answer: B
It should be recorded at its fair value (i.e., the purchase price) when acquired.
User Contributed Comments 5
| User | Comment |
|---|---|
| Renaud1807 | US Gap=expensed, IFRS=goodwill, isnt it? |
| cong | Internally generatel intangible assets should be expensed (R&D is an exception) |
| DariSH | acquired is the main point here |
| rocyang | makes sense, what's the harm in cutting non-business acquisition some slack? (non-conservatism) |
| domedome | what is a non business combination transaction? |