Consider the following situations in each case and state whether there is an asset or liability within the definition given by the framework. Give reasons for your answer
a. Potter Co has manufactured a patent for P200 000. the patent gives the company sole use of a manufacturing process that will save P30,000 a year for the next five years.




b. Capital Co paid Neo P100 000 to set up a car repair shop on the condition that priority treatment is given to cares from the company's fleet




c. BGG Co provides a warranty with every car sold.

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Answer rating: 100% (QA)

As the framework has not been given in the question it is assumend to be IFRS Definition of Asset as ... View the full answer