The below mentioned paragraph is from core reading and this doesn't seem to match with the exam question.
To qualify as an intangible, the asset must be identifiable, and the company must have the power to obtain economic benefits from it.
Research and development costs: For example, ‘research and development’ expenditure must initially be treated as an expense and can only be capitalised as an intangible asset if commercial feasibility is established.
Concessions, patents: A company can buy the rights over a particular product or discovery. A few companies show such rights as an asset. For example, a television company that owns the franchise to broadcast over a certain period of time might class this expenditure as an intangible.
Trade marks and brand names: Similarly, a few companies claim that their trade marks and brand names are valuable assets which should be shown in the statement of financial position.
Which of the following assets are not intangible fixed assets?
I Research costs (correct as per solution)
II Trade marks
III Development costs
To qualify as an intangible, the asset must be identifiable, and the company must have the power to obtain economic benefits from it.
Research and development costs: For example, ‘research and development’ expenditure must initially be treated as an expense and can only be capitalised as an intangible asset if commercial feasibility is established.
Concessions, patents: A company can buy the rights over a particular product or discovery. A few companies show such rights as an asset. For example, a television company that owns the franchise to broadcast over a certain period of time might class this expenditure as an intangible.
Trade marks and brand names: Similarly, a few companies claim that their trade marks and brand names are valuable assets which should be shown in the statement of financial position.
Which of the following assets are not intangible fixed assets?
I Research costs (correct as per solution)
II Trade marks
III Development costs