Question: Question 5 - This question has 3 parts (6 marks). [3 + 2 + 1] = 6 marks The business Campus Furniture just hired a

Question 5 - This question has 3 parts (6 marks). [3

Question 5 - This question has 3 parts (6 marks). [3 + 2 + 1] = 6 marks The business Campus Furniture just hired a new manager, Daniel Rad. Daniel Rad is famous for his business savvy, turning unprofitable and struggling business venture to multimillion-dollar business. The CEO believes that Daniel Rad should be regarded as the most valuable asset in the business. The CEO also trusts that Daniel Rad is worth at least $1,000,000. (6 marks) Required: (i) Using the definition of the term asset per the Conceptual Framework, explain whether Daniel Rad can be considered as an asset to the business Campus Furniture. (3 marks) (ii) The CEO then comes to you to enquire whether it is appropriate to recognise Daniel Rad as an asset in the financial statement. Explain whether Daniel Rad meets the recognition criteria of an asset. (2 Marks) (iii) Given your answers in part (i) and part (ii), state whether or not the Daniel Rad can appear on the the business' balance sheet. (1 Mark)

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