The cost of intangible asset at initial recognition is measured at its fair value when,
A)It is internally generated
B)It is acquired as a part of business combination
C)It is acquired by way of a Government grant
D)Both (b) and (c)

Question

Quizplus · Accepted Answer

The cost of an intangible asset at initial recognition is measured at its fair value when it is acquired as part of a business combination or by way of a government grant. This is because the fair value can be reliably measured in these situations, providing a basis for the asset's initial recognition on the balance sheet.

The Cost of Intangible Asset at Initial Recognition Is Measured