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Based on AASB 138: Intangible Assets, which of the following items is most likely to have an active market?Group of answer choicesTransferable wheat production quotasIndustry trademarksCustomer contact listsVideo streaming rights

Question

Based on AASB 138: Intangible Assets, which of the following items is most likely to have an active market?Group of answer choicesTransferable wheat production quotasIndustry trademarksCustomer contact listsVideo streaming rights

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Solution 1

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Solution 2

Based on AASB 138: Intangible Assets, the item most likely to have an active market is Transferable wheat production quotas.

An active market, as defined by AASB 138, is a market in which all the following conditions exist:

  1. The items traded in the market are homogeneous.
  2. Willing buyers and sellers can normally be found at any time.
  3. Prices are available to the public.

Transferable wheat production quotas meet these conditions. They are homogeneous, buyers and sellers can usually be found at any time, and the prices are publicly available.

On the other hand, industry trademarks, customer contact lists, and video streaming rights are typically unique and not homogeneous, and their prices are not usually

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Solution 3

Based on AASB 138: Intangible Assets, the item most likely to have an active market is Transferable wheat production quotas.

An active market, as defined by AASB 138, is a market in which all the following conditions exist:

  1. The items traded in the market are homogeneous.
  2. Willing buyers and sellers can normally be found at any time.
  3. Prices are available to the public.

Transferable wheat production quotas meet these conditions. They are homogeneous, buyers and sellers can usually be found at any time, and the prices are publicly available.

On the other hand, industry trademarks, customer contact lists, and video streaming rights are typically unique and not homogeneous, and their prices are not usually publicly available. Therefore, they are less likely to have an active market.

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Solution 4

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