There Are 3 Main Points to the NZ Framework Definitions

question 8

Essay

There are 3 main points to the NZ Framework definitions of an asset.Apply those 3 main points to each of the following scenarios,and determine whether an asset should be recognised and recorded in the Balance Sheet.
a A firm is involved in a court case in which it is suing a competitor for $100,000 for copying its product and trademark.The court case has not yet been decided.
b A firm has signed a contract of purchase for 2 tonnes of bananas in Ecuador,and also has an insurance contract for loss of sales and profits if the bananas are damaged,lost or held back in any way from the voyage to New Zealand.
c A firm has just signed a world-famous New Zealand netballer to work for them in a marketing position.The netballer's international contacts and high profile are expected to win the firm several lucrative contracts.The contract of employment may be terminated by either party,provided written notice is given 2 weeks in advance of the termination date.

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Definitions:

Fear Of Driving

An anxiety disorder characterized by an intense fear or phobia of driving a vehicle.

Post-Traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, severe anxiety, and uncontrollable thoughts about the event.

Vivid Flashbacks

Intensely clear and powerful memories of past experiences, often associated with traumatic events, that involuntarily come to mind.

PTSD

Post-Traumatic Stress Disorder, a condition of persistent mental and emotional stress occurring as a result of injury or severe psychological shock.