An intangible asset is an asset that has no physical substance. Although it is not an asset that can be seen or touched, intangible assets are also valuable to an entity, and can influence its long-term performance. Several types of intangible assets are encountered in practice such as patent and trademark. Following are the statements related to intangible assets: (i) A sign which distinguishes the goods and services of one entity from those of another. (ii) A form of protection provided by the law to authors of original creative works, including literary works, musical works, artistic works, films, sound recordings, and broadcasts. (iii) The application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production or use. (iv) A method of marketing and distributing products and services based on a two-party contract. (v) An exclusive right granted for an invention, which is a product or a process that provides a new way of doing something or offers a new technical solution to a problem. (vi) A license required in order to use properties or rights owned by other entities, such as broadcasting licenses for radio and TV stations, licenses for insurers, and landing rights for airline operators. REQUIRED: (a) For each of the statement above, state the types of intangible assets that best suit them. (b) Identify and briefly explain the THREE (3) criteria of intangible assets based on MFRS 138 Intangible Assets.
An intangible asset is an asset that has no physical substance. Although it is not an asset that can be seen or touched, intangible assets are also valuable to an entity, and can influence its long-term performance. Several types of intangible assets are encountered in practice such as patent and trademark. Following are the statements related to intangible assets: (i) A sign which distinguishes the goods and services of one entity from those of another. (ii) A form of protection provided by the law to authors of original creative works, including literary works, musical works, artistic works, films, sound recordings, and broadcasts. (iii) The application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production or use. (iv) A method of marketing and distributing products and services based on a two-party contract. (v) An exclusive right granted for an invention, which is a product or a process that provides a new way of doing something or offers a new technical solution to a problem. (vi) A license required in order to use properties or rights owned by other entities, such as broadcasting licenses for radio and TV stations, licenses for insurers, and landing rights for airline operators. REQUIRED: (a) For each of the statement above, state the types of intangible assets that best suit them. (b) Identify and briefly explain the THREE (3) criteria of intangible assets based on MFRS 138 Intangible Assets.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 15DQ
Related questions
Question
Transcribed Image Text:An intangible asset is an asset that has no physical substance. Although it is not an asset that can
be seen or touched, intangible assets are also valuable to an entity, and can influence its long-term
performance. Several types of intangible assets are encountered in practice such as patent and
trademark. Following are the statements related to intangible assets:
(i) A sign which distinguishes the goods and services of one entity from those of another.
(ii) A form of protection provided by the law to authors of original creative works, including
literary works, musical works, artistic works, films, sound recordings, and broadcasts.
(iii) The application of research findings or other knowledge to a plan or design for the
production of new or substantially improved materials, devices, products, processes,
systems or services before the start of commercial production or use.
(iv) A method of marketing and distributing products and services based on a two-party
contract.
(v) An exclusive right granted for an invention, which is a product or a process that provides
a new way of doing something or offers a new technical solution to a problem.
(vi) A license required in order to use properties or rights owned by other entities, such as
broadcasting licenses for radio and TV stations, licenses for insurers, and landing rights
for airline operators.
REQUIRED:
(a) For each of the statement above, state the types of intangible assets that best suit them.
(b) Identify and briefly explain the THREE (3) criteria of intangible assets based on MFRS
138 Intangible Assets.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College