The two gaps that frustrate attempts to recognise intangible assets are:
A)time gap and expectation gap.
B)outlay gap and correlation gap.
C)relevance gap and reliability gap.
D)time gap and correlation gap.

Question

Quizplus · Accepted Answer

The two gaps that frustrate attempts to recognise intangible assets are the time gap and correlation gap. The time gap refers to the delay between the investment in the intangible asset and the generation of economic benefits, which can make it difficult to assess the value of the asset. The correlation gap refers to the difficulty in establishing a clear causal link between the intangible asset and the economic benefits it generates, which can further complicate the recognition and valuation of intangible assets. Therefore, option D is the best choice for this question.

The Two Gaps That Frustrate Attempts to Recognise Intangible Assets