CFA Practice Question

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CFA Practice Question

If an intangible asset is acquired in a non-business-combination transaction, it should be ______.

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?
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