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RoseWind [281]
3 years ago
15

Intangible assets

Business
1 answer:
Ostrovityanka [42]3 years ago
4 0

Answer:

a) should be reported as a separate classification on the balance sheet.

Explanation:

Intangible assets such as software cost are not physical or tangible assets and as such <u>cannot</u> be reported under the heading Property, Plant, and Equipment.

Intangible assets like some elements of Property, Plant, and Equipment are used for more than a year and as such are usually non current assets.

Intangible assets are reported in the balance sheet as (like other assets), economic benefits flow to the entity from the use of intangible assets.

Hence, the right option is a) should be reported as a separate classification on the balance sheet.

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