Question: Ownership is often concurrent with control, but it is not essential characteristic of an asset. The framework definition of assets requires future economic benefits to

Ownership is often concurrent with control, but it is not essential characteristic of an asset. The framework definition of assets requires future economic benefits to be controlled by an entity before they can be regarded as an asset. Required: Discuss the economic benefits must be controlled by the entity in order to qualify as an asset (Relate your discussion with accounting principles)

ii. Ikhsana Sdn Bhd spent RM600 000 on television advertising of its new range of sportwear during the year. Market research indicates that the advertising has definitely boosted sales. The company recognized RM600,000 as an asset.

Required:

1) Criticize the Ikhsana Sdn Bhd's accounting treatment for RM600,000.

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