Question No 39:
Which ONE of the following events would result in an asset being recognised in KJH’s statement of financial position at 31 January 2012?
A. KJH spent $50,000 on an advertising campaign in January 2012. KJH expects the advertising to generate additional sales of $100,000 over the period February to April 2012.
B. KJH is taking legal action against a contractor for faulty work. Advice from its legal team is that it is likely that KJH will receive $250,000 in settlement of its claim within the next 12 months.
C. KJH purchased the copyright and film rights to the next book to be written by a famous author for $75,000 on 1 March 2011.
D. KJH has developed a new brand name internally. The directors value the brand name at $150,000.