What criteria must be demonstrated by an entity for the recognition of an item as an intangible asset?
A) The item must meet the definition of an intangible asset
B) The recognition criteria
C) Both A and B
D) Neither A nor B

Question

Quizplus · Accepted Answer

To recognize an item as an intangible asset, it must meet the definition of an intangible asset and the recognition criteria set by accounting standards. Therefore, both A and B are necessary criteria for the recognition of an item as an intangible asset.

What Criteria Must Be Demonstrated by an Entity for the Recognition