5/27/2023 0 Comments Intangible assets from acquisition![]() ![]() If an expenditure fails to meet the definition of asset or recognition criteria then it should be recognized as an expense in the period it is incurred. the cost of the asset can be measured reliably.the future economic benefits arising from the asset are flowing to the entity and.If it fulfills the definition of asset, it has to meet the recognition criteria: the future economic benefits arising from the item should flow to the entity.it should be under the control of entity and.Just like other non-current assets, intangible assets must meet the definition of asset and also the recognition criteria to formally record the item in the financial books of the entity.įor an intangible item or an expenditure to be considered intangible asset: For example formula to make medicine doesn’t hold any physical form. It doesn’t have any material form or can’t be sensed with either of the five senses. For example cash is not an intangible asset rather it is a financial asset. ![]() These assets are not in the form of currency.
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