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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › J22 Q2 b Intangible asset
Discuss whether the customer databases and domain names should be recognised under IAS 38 Intangible Assets
Sir in this question examiner has written following answer
Renshu Co has a present right to receive future cash flows under the contractual arrangement in relation to the customer database and therefore, in accordance with IAS 38 Intangible Assets, an intangible asset should be recognised for the customer database as it is probable that the expected future economic benefits will flow to Renshu Co.
In addition, Renshu Co also acquired domain names for websites which have gaming content. This will satisfy the separability criterion for recognition in IAS 38 and should therefore be recognised as an intangible asset
Sir 1 question I want to ask that why in case of domain names examiner has not written the condition of probable future economic benefits and whether it is satisfied or not?
And in case of custimer database why examiner has not written condition of separability criterion and whether it is satisfied or not?
I don’t know why he wrote what he wrote.
In your exam you should write:
1. Probable
AND
2. Identifiable (separable OR legal /contractual rights).
