Arguments in Favour of Including 'Exchangeability' as an Essential Criterion

question 26

Multiple Choice

Arguments in favour of including 'exchangeability' as an essential criterion for the identification of an asset under the IASB (AASB) Framework include which of the following?

• A)That assets should be separable from the entity and have a separate disposal value
• B)That exchange is only one way to obtain the benefit of an asset
• C)That economic value depends upon scarcity and utility,but not on exchangeability
• D)None of the above are arguments in favour of including exchangeability as an essential characteristic of an asset.

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Definitions:

Business Assets

Economic resources or items of value owned by a company that are expected to provide future benefits or profits.

Bulldozer

A heavy, tractor-like vehicle with a large, metal plate used to push large quantities of soil, sand, rubble, or other such material during construction or conversion work.

Capital Loss Deduction

A tax deduction for losses incurred on the sale of an asset held for investment, allowing for the offset of capital gains or regular income up to certain limits.

Business Property

Assets and property owned by a business used in the operation and function of the business, including real estate, equipment, and intellectual property.