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Dear sir,
please
When study Oq Mar 2020 no 1 (b),
I was confused at customer contracts.
Which key point in question is importance to be recognised as intangible asset?
And then Is it not IFRs15 ?The contracts are a purchased asset – this is a question about goodwill where all assets should be measured at FV. It is not a question about selling things.
Yeah sir.
But, this paragraph
excluded from these FV are several contracts with the customers of Cro Co.These contractual relationship prohibit the customers of Cro Co from obtaining services from any of the main competitors of Cro Co.
That mean Customer relationship-customer related intangible assets?
Hoping ….ThzYes – you must recognise these contracts as intangibles at FV because they give the company ‘legal/contractual’ rights.
This is an important current issue because many parent companies have been failing to do this, thus overstating goodwill.
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