Asked by Amirul Hasan on Jul 27, 2024
Verified
AASB 138 Intangibles requires that an asset meet which of the following criteria to be classified as an identifiable intangible?
I. It arises from a contractual or legal right.
II. It is separable from the entity.
III. Its cost must be reliably measurable.
IV. Its fair value must be able to be reliably measured.
A) I or IV only.
B) I or II only.
C) II or III only.
D) I or III only.
AASB 138
Refers to the Australian Accounting Standards Board's standard on Intangible Assets, specifying recognition, measurement, and disclosure criteria.
Identifiable Intangible
An intangible asset that can be separated from the company and sold, transferred, or licensed.
Contractual Right
A legal entitlement derived from a contract that allows one party to demand a particular action or outcome from another party.
- Understand the requirements for the acknowledgment of intangible assets in financial disclosures.
- Recognize the principal attributes of intangible assets.
Verified Answer
RV
Romain Vianney Obame NdoutoumeJul 30, 2024
Final Answer :
B
Explanation :
According to AASB 138, an asset must be identifiable, which means it either arises from a contractual or legal right (I) or is separable from the entity (II). In addition, its cost must be reliably measurable (III). While its fair value (IV) is also relevant, it is not a necessary criterion for an asset to be classified as an identifiable intangible. Therefore, I or II, followed by III, are the necessary criteria for an asset to be classified as an identifiable intangible. Choice B is the only option that includes both I and II, making it the correct answer.
Learning Objectives
- Understand the requirements for the acknowledgment of intangible assets in financial disclosures.
- Recognize the principal attributes of intangible assets.