Barbie isn't telling the full story

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 reread the article before attempting the questions again.

Why doesn't Barbie appear on the balance sheet of Mattel?

It has been impaired to zero

It has been sold by Mattel to Lego

It is listed under goodwill

It is an internally generated asset

Which of these is a noted problem within goodwill accounting?

Upwards revaluations of goodwill are overinflating OCI

The amortisation period under IFRS 3 is too long

All the other answers are correct

Impairment is done 'too little, too late'

Which of the following items cannot be capitalised under the IAS 38 standard for intangible assets?

Development costs of a new product

Research costs of a new product

Acquisition of a patent

Acquisition of a brand

Which of these internally generated items can be capitalised under IAS 38?

Development of a new product

Research into a new product

Goodwill

Brand name

What rule applies to the revaluation of intangible assets?

Revaluations must be performed annually

Revaluations can be performed only if an active market exists

Revaluations are not permitted

Revaluations must be taken to the statement of profit or loss

How is the fall in value of an unrecognised brand recorded in the financial statements?

The related goodwill is impaired through profit or loss

The brand in intangible assets is impaired through profit or loss

The brand in intangible assets is impaired through OCI

Nowhere

Which of the following criteria must be met to capitalise development costs?

Contracts must be in place

The item must be a standalone product

The item must be technically feasible

None of the other answers is correct

Which of the following statements are correct regarding the feedback from research? Statement 1, it is noted it would be good to recognise more internally generated intangibles. Statement 2, there is asymmetry between internally generated intangibles and acquired intangibles.

Neither statement is correct

Both statements are correct

Statement 2 is correct

Statement 1 is correct

What is the current status of IAS 38 on the IASB's workplan?

The results of research are being reviewed

A new standard is being issued

An exposure draft has been issued

It is not on the workplan

Which, if any, of the following statements is correct? Statement 1, goodwill is subject to an annual impairment review. Statement 2, goodwill impairment cannot be reversed.