MCQ for CA Final FR - Chapter 7 Ind AS 38: Intangible Assets

Sample Multiple Choice Questions (MCQ's) for CA Final - Paper 1 - Financial Reporting - Chapter 7: INDIAN ACCOUNTING STANDARD 38: Intangible Assets :  - For Practice relevant for May/Nov 23 Examinations


Q:1 Specify which Ind AS is Applicable for Owned by a Company and leased out under an Operating Lease


  1. Ind AS 10
  2. Ind AS 40
  3. Ind AS 2
  4. None of these

Answer: 2


Q:2 Specify which Ind AS is Applicable for-

Property acquired with a view for development and resale


  1. Ind AS 1
  2. Ind AS 2
  3. Ind AS 12
  4. Ind AS 16

Answer: 2


Q:3 Specify which Ind AS is Applicable for-

Property occupied by Employees paying rent at less than market rate


  1. Ind AS 105
  2. Ind AS 10
  3. Ind AS 16
  4. Ind AS 12

Answer: 3


Q:4 X Limited has an investment property (building) which is carried in Balance Sheet on 31st March, 20X1 at`15,00,000.During the year X Limited has stopped letting out the building and used it as its office premise. On 31st March, 20X1, management estimates the recoverable amount of the building as`10,00,000 and its remaining useful life as 20 years and residual value is nil. How should X Limited account for the above investment property as on 31st March, 20X1?

Calculate carrying amt as on 31st March,20X1


  1. 1200000
  2. 1000000
  3. 1035000
  4. 1100000

Answer: 2


Q:5 On 31stMarch, 20X1, Earth India Ltd. paid`50,00,000 for a 100% interest in Sun India Ltd.At that date Sun Ltd.’s net assets had a fair value of`30,00,000. In addition, Sun Ltd. also held the following rights:

  • Trade Mark named “GRAND” – valued at `180,000 using a discounted cash flow technique.

  • Sole distribution rights to an electronic product; future cash flows from which are estimated to be `150,000 per annum for the next 6 years.

10% is considered an appropriate discount rate.

The 6 year, 10% annuity factor is 4.36.

Calculate goodwill and other Intangible assets arising on acquisition


  1. 11,66,000
  2. 11,60,000
  3. 11,06,000
  4. 11,00,000

Answer: 1


CA Final - Paper 1 - FR - Chapter 8   


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