For an Asset to Be Classified as an Identifiable Intangible,AASB

question 16

Multiple Choice

For an asset to be classified as an identifiable intangible,AASB 138 Intangibles requires that it meet which of the following criteria?
I.It arises from a contractual or legal right.
II.Its fair value must be able to be reliably measured.
III.It is separable from the entity.
IV.Its cost must reliably measurable.

• A)I or IV only
• B)I or II only
• C)II or III only
• D)I or III only.

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Definitions:

Direct Labor Rate

The cost per labor-hour of the workers directly involved in the manufacturing or production process.

Fringe Benefits

Fringe benefits are additional compensation provided to employees beyond their normal wages, including health insurance, retirement plans, and paid time off.

Contribution Margin

Represents the amount of revenue remaining after deducting variable costs, contributing towards covering fixed costs and generating profit.

Production Capacity

The maximum volume of products or services a company can produce under normal working conditions.