During an Acquisition, When Should Intangible Assets NOT Be Recognized

question 55

Multiple Choice

During an acquisition, when should intangible assets NOT be recognized apart from Goodwill?

• A) The assets have been identified but not accounted for by the subsidiary.
• B) The assets have been identified and accounted for by the subsidiary.
• C) The assets can be sold, licensed or exchanged.
• D) The assets have been accounted for by the subsidiary but have no Fair Value on the date of acquisition.

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Definitions:

Ownership

The legal right or title to possess, use, and dispose of property or an asset.

Fixtures

Items that were originally personal property but have been attached to real property in a manner that they are considered legally part of the real property.

Real Property

Land and any structures attached to it, such as buildings or houses, including the rights associated with ownership of the land.

Appurtenance

A legal term referring to an accessory or adjunct that is attached to and passes with the principal property.