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In Question 33 – Skizer, the company has treated the purchase of stakes in a development project as an Intangible Asset (IA) . Subsequently in the next year, it derecognises the IA due to doubts over future economic benefits.
Part a(ii) of the question asks for an explanation of the implications if the criteria for recognition is not met as per IAS 38.
My doubt is – if the criteria to IAS 38 is not met is it correct to assume that the interest can be treated as a Financial asset in the books?
The answer key makes no mention of this point
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