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Kaule Ltd is a healthy - food restaurant franchise that has been operating successfully in South Africa for more than a decade. Their menu is
Kaule Ltd is a healthyfood restaurant franchise that has been operating successfully in South Africa for more than a decade. Their menu is made to fit all kinds of diets and always has a healthy variety of choices.The franchise gained international popularity after a tweet holding one of its products in the gym.The tweet subsequently boosted the company's sales and profits and continues to do soAs a result, the owner of the franchise is of the opinion that an amount of R million for goodwill relating to the product should be recognized as an asset in the annual financial statements of the company for the year ended December Required:Discuss whether or not the owner of Kuale Ltd can recognize the R million as an asset goodwill in the annual financial statements. Your answer should include full definitions and recognition criteria as outlined by IFRS in the conceptual framework.
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