- CFA Exams
- CFA Exam: Level I 2021
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 22. Understanding Balance Sheets
- Subject 2. Measurement Bases of Assets and Liabilities
CFA Practice Question
Under U.S. GAAP, internally created identifiable intangibles ______
B. can be capitalized for costs incurred in the development stage if certain criteria are met.
C. can be capitalized for costs incurred in the research stage if certain criteria are met.
D. should be tested annually for impairment.
A. must be expensed.
B. can be capitalized for costs incurred in the development stage if certain criteria are met.
C. can be capitalized for costs incurred in the research stage if certain criteria are met.
D. should be tested annually for impairment.
Correct Answer: A
B would be true under IAS. D is for goodwill.
User Contributed Comments 6
| User | Comment |
|---|---|
| Bududeen | tricky |
| wundac | Got me |
| mrushdi | IAS, more concern about the balance sheet accuracy. US GAAP more concern about the Income Statement. |
| papajeff | dirty |
| johntan1979 | Goodwill is unidentifiable intangible asset |
| Kevdharr | Fooled me |