Ken owns and runs a high quality Japanese restaurant in the central district of Kuala Lumpur. He has received a number of offers from potential buyers but is not sure of the price he wants to sell it for.

The value of the business including land and buildings which is worth $2.5 million and the value of restaurant and kitchen fittings is worth $700,000. However, Ken feels that his restaurant is worth more than this. He has many loyal and regular customers and more importantly, he has two excellent chefs who have won awards on Masterchef. Added to this, his waiters and waitresses are well trained and highly regarded. All these factors have contributed to the restaurant receiving glowing reports in the magazines and newspaper.

After many rounds of negotiations, Ken decides to sell his restaurant to Jasmine at $4 million, with an additional value of RM800,000 paid over its tangible assets.

By referring to the DEFINITION and RECOGNITION criteria of Assets outlined in the Conceptual framework, should this additional value of RM800,000 to be recorded in Jasmines balance sheet?