Arguments in favour of including 'exchangeability' as an essential criterion for the identification of an asset under the IASB (AASB)Framework include which of the following?
A)That assets should be separable from the entity and have a separate disposal value
B)That exchange is only one way to obtain the benefit of an asset
C)That economic value depends upon scarcity and utility,but not on exchangeability
D)None of the above are arguments in favour of including exchangeability as an essential characteristic of an asset.

Question

Quizplus · Accepted Answer

One of the essential characteristics of an asset is that it should be separable from the entity and have a separate disposal value. Exchangeability is one way to achieve this characteristic, as an asset can be exchanged for cash or another asset, establishing its separate value. Therefore, including exchangeability as a criterion for identifying an asset is appropriate. Choices B and C are incorrect as they do not support the inclusion of exchangeability as an essential criterion, and choice D is incorrect as the question explicitly asks for arguments in favor of including exchangeability.

Arguments in Favour of Including 'Exchangeability' as an Essential Criterion