The intangibles debate

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again

  1. What is the main reason for the gap between stock market value and net book value of businesses?

  2. Which intangible sources of value are never going to be able to be recognised as assets?

  3. Which of the following was not a subject of a report commissioned by ACCA on intangibles?

  4. How many companies in the study capitalised a software asset?

  5. Which of the following countries had few companies referring to software development in their accounts?

  6. What is wrongly implied by including research and development as neither an expense nor an asset?

  7. What kind of companies tend to capitalise intangibles more?

  8. What percentage of extractive companies tend to capitalise costs of exploration and evaluation of new resources as an intangible asset?

  9. What likely conclusion can be drawn from the reports?

  10. What likely difficulty might arise for investors as a result of companies not capitalising intangibles?

1 Unit