The definition and recognition criteria have been met

Equipment-Foreign currency transaction

Issue: Equipment was purchased in November for US$200,000 and recorded at U$1=C$1.22 for $244,000. At year end the equipment and accounts payable remained valued at $244,000.

(a) (b)	foreign currency monetary items shall be translated using the closing rate; non-monetary items that are measured in terms of historical cost in a foreign

Original entry:	Dr Equipment $244,000
Original entry:	Cr Accounts payable

Customer list-Intangible assets

Issue: In mid-December OTE purchased exclusive rights to a competitor’s customer list for $75,000. The valuation was from a Chartered Business valuator and expensed. The issue is whether the customer list meets the criteria for an intangible asset.

(b)	
(b)	arises from contractual or other legal rights, regardless of whether those rights are

As per the above analysis the customer list meets the definition for an intangible asset.

As per IAS 38 intangible assets, An intangible asset shall be recognized if, and only if:

(a)

(b)	the cost of the asset can be measured reliably.
(b)		Criteria met. The customer list was valued at $75,000.