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August 11, 2022

List the classified Intangible Assets with examples.

Please answer to the following questions:

Q3. List the classified Intangible Assets with examples. (2 Marks)

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Q4.

a. Explain provisions and its types with IFRS requirements.

b. On January 1, 2020, an Oil Company erected an oil platform in the Gulf of KSA. Oil Company is legally required to dismantle and remove the platform at the end of its useful life, estimated to be five years. Oil Company estimates that dismantling and removal will cost SAR 3,000,000. Based on a 10 percent discount rate, the fair value of the environmental liability estimated to be SAR 1,862,760 (3,000,000 x .62092).

Pass entry in books of Oil Company to records this liability on Jan. 1, 2021. Using the straight-line method, record entry to be expensed. (2 Marks)

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