Which of the following is NOT generally recognised as being an asset in the financial statements of a company?
A) Goodwill following the sale of a business
B) Plant & Machinery used in the business bought on a hire purchase contract
C) Stock held for resale
D) Skills and qualifications of Staff

Question

Quizplus · Accepted Answer

Although there are strong arguments to recognise "human capital" and there are very small areas where it may be recognised, generally the "value" of human capital is not recognised on the statement of financial position. Goodwill is recognised after the sale of a business but cannot be created without the transaction and is often written off immediately. Plant & Machinery - unless leased under an "operating lease" - is capitalised and shown on the statement of financial position as a non-current asset. Stock held for resale (also known as "inventory") is a current asset.

Which of the Following Is NOT Generally Recognised as Being