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Problem 1. What are the key characteristics of an intangible asset?
Problem 2. Explain what is meant by 'identifiability'.
Problem 3. How is the useful life of an intangible asset determined?
Problem 4. Flash Ltd has the following: 1. an investment in a subsidiary company 2. training costs associated with a new product 3. the cost of testing in search for product alternatives 4. legal costs incurred in securing a patent 5. long-term receivables.
Required
Which of these should be included as an intangible asset in the accounts of Flash Ltd? Give reasons for your answers.
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