ACCA FA · Chapter 6 · Question 12 of 12
Which of the following can be recognised as an intangible asset in a company's statement of financial position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A patent purchased from another company
Explanation
A separately acquired patent has a cost that can be measured reliably and gives the company control over future economic benefits, so it qualifies. IAS 38 specifically prohibits recognising internally generated goodwill and brands, and training costs are expensed because the company does not control its employees.
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