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) it must be a current item.
B) it may not be a non-monetary asset.
C) its fair value can be reliably measured.
D) it must be measured using the present value method.

Question

Quizplus · Accepted Answer

A tangible asset can be recognised by an acquirer under a business combination only if its fair value can be reliably measured. It is not necessary for the asset to be a current item or for it to be measured using the present value method. It is also possible for a non-monetary asset to be recognised, as long as its fair value can be reliably measured and future economic benefits are expected to flow to the acquirer.

For a Tangible Asset to Be Recognised by an Acquirer