Thanos is a diversified company involved in a wide range of activities in the food takeaways. Take out the following activities during the year. The company purchased a brand on 1 January 2023 for R3 000 000. At acquisition, the estimated useful life of the brand was 10 years. At acquisition, it was determined that there is no active market for the brand. On 31 December 2023, the directors of Thanos believed that the brand was now worth R4 000 000. Required Explain, giving reasons, how each of the above transactions should be dealt with in the financial statements for the year ended 31 December 2022, in accordance with IAS 38 Intangible assets.Your answer should focus on recognition and measurement and include calculations where relevant.

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According to IAS 38 Intangible Assets the recognition and measurement of intangible assets such as b... View the full answer