Points to be achieved: $1\mathrm{.}00$

Enterprise $Co$ is heavily involved in developing a new production process. In the year to $31$ March $20$X$1$ the amount of expenditure incurred on development costs could be analysed as follows:

$1$ April $200$ to $30$ September $20$X$0$

$1$ October $200$ to $31$ March $20$X$1$

Euro $$

$18,400$

$6_{,}\frac{500}{94}$

On $1$ October $20$X$0$ Enterprise Co demonstrated that the production process met the recognition criteria of IAS $38$ Intangible Assets. The amount estimated to be recoverable from the process is $21,000.$

At what amount should the production process be recognised as an intangible asset at $31$ March $201$ in accordance with IAS $38?$

Please select the right answer.

$6,500$

$18,400$

$21,000$

$24,900$

Points to be achieved: $1\mathrm{.}00$

On $1$ January $20$X$1$ Corcoran Bakery Company recognised a brand 'Tubbycakes' as an intangible asset at its acquisition cost of $$50,000$ in accordance with IAS $38.$ The brand was determined to have a useful life of $10$ years. On $31$ December $202$ the brand was valued by a brand valuation agency at $$64,000.$ On $31$ December $20$X$3,$ after negative press coverage of Tubbycakes products, the brand's fair value fell to $$25,000.$

Which of the following is recognised in the year ended $31$ December $20\backslash$times $3?$

Please select the right answer.

An impairment loss in profit or loss of $$7,000$

A downwards revaluation in other comprehensive income of $$31,000$

An impairment loss in profit or loss of $$10,000.$

An impairment loss in profit or loss of $$15,000$

$\frac{7}{25},51$:$26$

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