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Discuss whether the following items would meet the definition of an asset using the IFRS definitions. If so, explain with reference to the appropriate criteria.

Discuss whether the following items would meet the definition of an asset using the IFRS definitions. If so, explain with reference to the appropriate criteria.

  1. MBI Ltd. owns a corporate fleet of cars for senior managements use in performing work duties.
  2. A franchisee has a licence to operate a Tim Hortons restaurant.
  3. Customized manufacturing machinery can only be used for one product line and has a small and limited customer market.
  4. The parent company has guaranteed the operating line of credit of its subsidiary, which resulted in the subsidiary obtaining a lower interest rate than it would otherwise receive. Is the guarantee an asset for the subsidiary?
  5. FreshWater Inc. bottles and sells the spring water from a natural spring near its property. Is the natural spring an asset of the company?
  6. Mountain Ski Resort Ltd. often has to use its snow-making machine to make snow for its hills and trails when there is not enough natural snowfall. Is the snow an asset for Mountain Ski?

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