Page 16 - Finac1 Test 3 slides - 2. Intangible Assets

TEST 3 PREPARATION

Recognition & measurement

• The recognition of an item as an intangible asset

requires an entity to demonstrate that the item

meets:

• the definition of an intangible asset and

• the recognition criteria.

• This requirement applies to costs incurred initially

to acquire or internally generate an intangible asset

and those incurred subsequently to add, replace

part of, or service it.

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