For an asset to be classified as an identifiable intangible, IAS 38 Intangibles requires that it meet which of the following criteria?
I) It arises from a contractual or legal right.
II) Its fair value must be able to be reliably measured.
III) It is separable from the entity.
IV) Its cost must reliably measurable.
A) I or IV only;
B) I or II only;
C) II or III only;
D) I or III only.

Question

For an asset to be classified as an identifiable intangible, IAS 38 Intangibles requires that it meet which of the following criteria?
 I) It arises from a contractual or legal right.
II) Its fair value must be able to be reliably measured.
III) It is separable from the entity.
IV) Its cost must reliably measurable.
A) I or IV only;
B) I or II only;
C) II or III only;
D) I or III only.

Quizplus · Accepted Answer

According to IAS 38, for an asset to be classified as an identifiable intangible, it must be separable from the entity (III) and arises from a contractual or legal right (I). The criterion for its fair value to be reliably measured (II) and its cost to be reliably measured (IV) apply to the subsequent accounting treatment, rather than the initial recognition of the intangible asset. Therefore, the correct choice is D – I or III only.

For an Asset to Be Classified as an Identifiable Intangible