Description

Instructions to Candidates:

Please read the instructions below before starting the paper

·         Module specific information is provided below by the Module Leader

·         The Module Leader will be available in the first hour of timed release to respond to any queries via a discussion board on blackboard

·         As you will have access to resources to complete your assessment any content you use from external source materials will need to be referenced correctly. Whenever you directly quote, paraphrase, or summarise someone else’s ideas, you have a responsibility to give due credit to that person for their work. Support can be found at

https://www.westminster.ac.uk/current-students/studies/study-skills-and-training/research-skills/referencing-your-work

·         This is an individual piece of work so do not collude with others on your answers as this is an academic offence.

·         Plagiarism detection software will be in use

·         Where the University believes that academic misconduct has taken place the University will investigate the case and apply academic penalties as published in Section 10 Academic Misconduct regulations. 

·         Once completed please submit your paper via the submission link provided.  You can only submit ONCE so please ensure you submit the correct and complete document.

·         Work submitted after the deadline will not be marked and will automatically be given a mark of zero

SECTION A (40 Marks)

Answer all the Multiple-Choice Questions in this section

(1)   Which of the following would not be included in the cost of a separately acquired intangible asset?

(a)  Non-refundable value added tax

(b)  Costs incurred in using the asset

(c)  Testing costs

(d)  Employee costs incurred in preparing the asset for its intended use

(1 mark)

(2)   On 31 December 2014, a company acquires an intangible asset for £50,000. The asset is revalued at £42,000 on 31 December 2015 and £57,000 on 31 December 2016.

The company prepares financial statements to 31 December each year and uses the revaluation model in relation to this class of intangible assets.

The correct accounting treatment of each revaluation in the statement of comprehensive income is as follows

(a)          2015

Expense £8,000

2016

Income £15,000

(b)          2015

Expense £8,000

2016

Income £8,000

Other comprehensive income £7,000

(c)          2015

Expense £8,000

2016

Other comprehensive income £15,000

(d)          2015

Negative other comprehensive income £8,000

2016

Other comprehensive income £15,000

(2 marks)

(3)  International standard IFRS3 states that goodwill acquired in a business combination is:

(a)   An asset which arises from assets acquired in the business combination that are individually identified

(b)   An asset which arises from assets acquired in the business combination that are not individually identified

(c)    An asset which arises from the acquired entity's good reputation

(d)   An asset which arises from the acquired entity's strong customer relationships