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I found this question in relation to accounting concepts.
Question
_________
One of Gee plc’s employees developed a new product. This has just been patented. The development costs of this product were negligible, but the parent rights are almost certainly worth many millions of pounds. Which accounting concept would prevent the company from recognizing the value of this patent as a fixed asset in its SOFP?
ANSWER
Materiality concept
Why is this the answer? And why are they net mentioning it is an intangible asset?
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