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Question 18: In order to determine whether or not expenditure should be treated as an intangible asset, the relevant test to apply in Australia 18:
Question 18: In order to determine whether or not expenditure should be treated as an intangible asset, the relevant test to apply in Australia 18: A: It should be recognised when (a) it is definite that future economic benefits will eventuate or (b) the asset possesses a cost of other value that can be measured reliably. B: It should be recognised if (a) the expenditure is with an external party in an arm's length transaction for a separately identifiable intangible asset or (b) the intangible asset arises as the difference between the net tangible assets of an entity and the price paid for that entity. C: It should be recognised if (a) it is part of a specified plan by management to develop and maintain a separately identifiable asset or (b) the intangible asset was purchased in an arm's length transaction and is actively traded in a market. It: It should be recognised when and only when (a) it is probable that future economic benefits will eventuate and (b) the asset possesses a cost or other value that can be measured reliably- E: None of the above
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