Ch12.

1. Technical feasibility of completing the intangible asset
2. The entity’s intention to complete it for use or sale
3. The entity’s ability to use or sell it
4. Availability of technical, financial, and other resources needed to complete it, and to use or sell it 5. The way in which the future economic benefits will be generated; including the existence of a market for the asset if it will be sold, or its usefulness to the entity if it will be used internally
6. The ability to reliably measure the costs associated with and attributed to the intangible asset during its development
Ch13.

Understanding Non-Financial and Current Liabilities

Liability: an obligation that arises from past transactions or events, which may result in a transfer of assets or provision of services.
Embody a duty or responsibility
Entity has little or no discretion to avoid the duty
The transaction that obliges the entity has occurred
Measurement and recognition: financial liabilities are typ `ically recognized initially at their FV. After acquisition, most financial liabilities that are discussed in this chapter are accounted for at their amortized cost.
Consistent with the cost based method: Transaction costs that are a direct result of the issue of the liability are debited (deducted from) its original FV.

A company can reclassify a short term obligation if it intends to refinance the obligation on a long term basis and demonstrates an ability to consummate the refinancing

nonfinancial liabilities and their recognition method; typically measured initially, and at each subsequent reporting date, at the best estimate of the amount the entity would rationally pay at the date of the statement of financial position to settle the present obligation. (This is usually the PV of the resources needed to fulfill the obligation, measured at the expected value or