In the case of brands, which separability treatment is accurate?

Question

Quizplus · Accepted Answer

Brands may qualify as assets and can be recognized on a company's balance sheet if they meet the criteria set out in applicable accounting standards, such as International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP). However, the treatment of brands may vary depending on the specific circumstances and the accounting standards being used. While B is partially correct, it only applies to U.K. firms and not globally. A and D are also incorrect as amortization is typically required for brands and they should not be classified as a liability.

In the Case of Brands, Which Separability Treatment Is Accurate