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Measuring Intangible Assets Acquired by Way of Government Grant In 2017. Rapid Row Bhd. submitted a tender to the government of Malaysia for a tramway

image text in transcribed Measuring Intangible Assets Acquired by Way of Government Grant In 2017. Rapid Row Bhd. submitted a tender to the government of Malaysia for a tramway project in Kuala Terengganu's city centre. At the end of 2017 , the company was granted the licence to operate the tramway for 15 years, beginning 1 January 2019. On 1 January 2019 , Rapid Row Bhd. had to incur legal and other administrative fees of RM110,000 in relation to the licence. Other than that, there were no other costs involved in securing the tender. The fair value of a similar licence on 1 January 2019 is RM1 million. Required: Advise Rapid Row Bhd. on the accounting treatment of the licence to operate the tramway

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