Intangible Assets Are Non-Physical Identifiable Assets

Steps:

• Recall intangible assets lack physical form and include rights like brands, goodwill, and trademarks.
• Identify tangible or monetary assets: cash (bank balance) and receivables (trade receivables) have physical or financial substance.
• Examine each option to ensure all items are non-physical and identifiable.
• Select the option where every asset fits the intangible definition.

Why C is correct:

• Brand names, goodwill, and trademarks are all non-physical assets recognized under IAS 38 as identifiable intangibles with economic benefits.

Why the others are wrong:

• A: Bank balance is a monetary current asset, not intangible.
• B: Bank balance and trade receivables are financial assets, not intangible.
• D: Trade receivables represent contractual rights to cash, classified as financial assets, not intangible.

Final answer: C