Which of the following statements is correct?

Question

BlackTom AI · Accepted Answer

Question restated: Which of the following statements is correct? The options address disclosure requirements under the accounting standards for intangible assets.
Option 1: 'Separate disclosures are required for internally generated intangibles.' This statement is not accurate because the standards require disclosures about intangibles, including policies and line items, but they do not mandate separate disclosures for internally generated intangibles specifically on a separate basis beyond the general disclosure requirements. The rule is more nuanced and focuses on policies, amortization, impairment, and the composition of intangible assets rather than a blanket mandate to separate internally generated items in all cases.
Option 2: 'AASB 138/IAS 38 requires disclosures about an entity's intangible assets to be made on an asset by asset basis.' This is incorrect because the standards typically require disclosures by class of intangible asset, not strictly by individual asset. The information should reflect the entities’ accounting policies, amortization methods, useful lives, gross carrying amounts, and impairment, organized by class or groupings that are meaningful, rather than a strict per-asset breakdown.
Option 3: 'Disclosures about the useful lives of intangibles are required with explanations being required where assets are assessed to have finite useful lives.' This statement aligns with the standard requirements: entities must disclose their accounting policies for intangible assets, including the method of amortization and the useful lives or the amortization rates. When assets have finite useful lives, explanations or estimates related to those lives are required as part of the disclosures. This option accurately reflects the need to disclose useful life information and any related assumptions for finite-life intangibles.
Option 4: 'Where the cost model is used, specific disclosures are required including assumptions made on estimating fair values.' This is misleading because under the cost model, entities do not measure or disclose fair values for intangible assets in the way the statement suggests. Revaluations to fair value are characteristic of the revaluation model, not the cost model. So this option misstates the disclosure requirements associated with the cost model.

Which of the following statements is correct?单项选择题

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