An intangible asset is recognized if, and only if, which of the following key criteria are met?
A) It is probable that there will be future economic benefits from the asset to the entity.
B) The cost of the asset can be measured reliably.
C) The asset's fair value can be determined.
D) A and B
E) A and C
F) B and C

Question

Quizplus · Accepted Answer

An intangible asset is recognized if it is probable that future economic benefits will flow to the entity (A) and if the cost of the asset can be measured reliably (B). The ability to determine the asset's fair value (C) is not a necessary criterion for initial recognition.

An Intangible Asset Is Recognized If, and Only If, Which