Consider the following items:
i. A piece of land a company planned to build a warehouse on is determined by a government agency to be toxic and not suitable for construction. The land is no longer considered usable for any purpose.
ii. An electronics retailer spends $225,000 building an expansion to the store so that it can offer a broader range of products to customers.
iii. A dental practice has a list of the names and addresses of its 800 patients.
iv. A survey determines that the logo of an international athletic wear maker is the one best known and respected in the world.
v. A student has paid university tuition totalling $15,000 to study business. The student plans to become a professional accountant in two years and hopes to open his own accounting practice within five years.
vi. A company sends certain employees for training in business and technology to enhance their skills and make them more valuable to the company.

For each of the items explain whether and why it would be considered the following:
a. an asset by a non-accountant (use your intuition, common sense, and judgment to decide whether the item in question should be considered an asset.)
b. an asset according to IFRS (use the IFRS criteria that were discussed in the chapter.)

  • CreatedFebruary 26, 2015
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