Hello Chris,
1.Could you explain why and how in production quotas are intangible assets?
2. At what value will they be shown in the SOFP?
Thanks.
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IAS 41
7y ago#1Hi,
A quota is a quantity of a specific good where it's production is fixed, so you have control over that specific amount of production. It therefore meets the definition of an asset with regards probable inflow of future economic benefits and control.
It is intangible as it has no physical substance.
It can then be shown on the SFP if it can be measured reliably.
Thanks
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