Assets without physical substance are recognised as intangible assets. These assets account for a significant fraction of the long-lived assets of some companies. However, recognition and reporting of intangible assets are challenging due to their inherent nature. Therefore, accounting standards provide clear guidelines to follow in reporting these assets in accounting reports. Answer the following questions in point form.

1. According to accounting standards, what are the three ways that a firm can acquire intangible assets? (0.5*3=1.5 marks)
2. How do you recognise intangible assets under IFRS? (0.5*5=2.5 marks)