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.

Question

Quizplus · Accepted Answer

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.

AASB 138 Intangibles Requires That an Asset Meet Which of the Following