In order for a tangible asset to be recognised by an acquirer under a business combination it must be probable that future economic benefits will flow to the acquirer and:
A)its fair value can be measured reliably
B)it must be a non-current item
C)it must be measured using the present value method d,it may not be a non-monetary asset.

Question

Quizplus · Accepted Answer

The asset must be valued at fair value, which requires reliable measurement.

Answer: C 
 The asset can be a non-monetary asset, but it must be measured using the present value method. The option B is incorrect because there is no requirement for the asset to be a non-current item.

In Order for a Tangible Asset to Be Recognised by an Acquirer