Answer:
a)1. An intangible asset must have the characteristics of an asset.
2. Probable future economic benefits from the intangible assets should be assessed.
3.To be recognized as an asset in the books, it is essential that the cost can be measured reliably.
b)The power to tax does not meets the definition of an intangible asset as the recognition criteria are not fulfilled.
c)There is no point in time when the power to tax creates an asset.
Explanation:
a) The requirements that need to be met for an intangible asset to be recorded in the county's financial statements are
1. An intangible asset must have the characteristics of an asset.
2. Probable future economic benefits from the intangible assets should be assessed.
3.To be recognized as an asset in the books, it is essential that the cost can be measured reliably.
In simple terms, the requirements are it should be controlled by an enterprise as a result of past event and from which future cash flows should flow to the enterprise.
To recognize it we should be able to assess how the cash flows.
Should be able measure the cost.
b) The power to tax does not meets the definition of an intangible asset as the recognition criteria are not fulfilled. Its cost cannot be measured reliably.
The amount of future cash flows cannot be identified and there is no past event which is controlled by it.
c) There is no point in time when the power to tax creates an asset.
