FAR 3.7 - Intangibles Flashcards

1
Q

Long-lived legal rights and competitive advantages developed or acquired by aa business enterprise:

A

Intangible assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Intangible assets acquired from other enterprises or individuals should be recorded as an asset at:

A

Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The general rule for Internally developed intangible assets is that they should be :

A

Expensed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

An exception to the general rule that internally developed intangible assets should be expensed is that certain costs associated with internally developed intangibles that are specifically identifiable can be capitalized such as:

A

Legal fees related to a successful defense
Registration or consulting fees
Design costs
Other direct costs to secure the asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

If an intangible asset is sold, the G or L is calculated as:

A

Carrying value - selling price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Finite life intangible assets are reported at:
Indefinite life intangible assets are reported at:

A

Finite: cost - amortization and impairment
Indefinite: cost - impairment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Start up costs are expensed and they include costs associated with:

A

Organizing a new entity
Opening a new facility
Introducing a new product
Conducting business in a new territory
Initiating aa new process in an existing facility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The general rule is that research and development costs are expensed, however there are two exceptions:

A
  1. Materials, equipment, and facilities with alternative future uses are capitalized
  2. R&D costs undertaken on behalf of others under a contractual agreement are capitalized
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Costs incurred until technological feasibility had been established for the Computer software developed to be sold, leased, or licensed are:

A

Expensed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Costs incurred after technological feasibility has been established for the Computer software developed to be sold, leased, or licensed up until the product is sold are:

A

Capitalized

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Technological feasibility is established upon completion of:

A

A detailed program design or working model

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Annual amortization of capitalized software costs is calculated as the greater of:

A
  1. Total capitalized amount / estimated economic life
    Or
  2. Total capitalized amount X (gross revenue for period / total projected gross revenue of product)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Costs incurred for the preliminary project state and costs incurred for training and maintenance for Computer software developed internally or obtained only for internal use are:

A

Expensed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Costs incurred after the preliminary project state and for upgrades and enhancements for Computer software developed internally or obtained only for internal use are:

A

Capitalized

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

If software previously developed for internal use is subsequently sold to outsiders, proceeds received should be:

A

First applied to the carrying amount of the software
Then the remainder is recognized as revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly