Which of the following statements is incorrect?
A)Intangible assets are fundamentally the same as tangible assets for recognition purposes.
B)Financial assets such as loans and receivables are excluded from being classified as intangible assets.
C)Separability tests whether an entity can divide an asset from other assets and transfer it to another entity.
D)Non-physical assets cannot be recognised unless they are identifiable.

Question

Quizplus · Accepted Answer

Intangible assets are not fundamentally the same as tangible assets for recognition purposes. Intangible assets must be identifiable, meaning they are separable or arise from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.

Which of the Following Statements Is Incorrect