CERTYNEX IFRS ACADEMY

Corvel buys from a third party, for 400,000, the brand of a range of biscuits; this brand meets the recognition criteria for an intangible asset. In the same year, it launches a second brand, Doria, designed by its own teams, on which it spends 150,000 on design and advertising. Which statement is correct?

Both brands are recognised as assets, at 400,000 and 150,000 respectively.

The purchased brand is recognised at 400,000; Doria is not recognised.

Neither brand is recognised, because a brand is never an intangible asset.

The purchased brand is recognised at 400,000 and Doria at its fair value at the date of its launch.