2) According to AASB Framework paragraph 49, “an asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity”. Obviously, future tolling rights asset satisfies all the definition of assets. First of all, BrisConnections company is provided with this right by the State government through the concession deed, hence it has full legal claim to collect toll fees. Second, this is a result of a past event as The City North Infrastructure indicated in 2008 that BrisConnections is the winning bidder for the contract to build the airport link, and as such, it can build and collect toll for a specific period of time. When the franchise expires, ownership is transferred to the government. Finally, the future tolling right will generate cash inflow for the company in the future through tolling fee. To be more specific, this is an intangible asset as the “right” is a legal claim, which is an identifiable non-monetary asset without physical substance.
3) The AASB 136 indicated that there are four steps in the procedure by which an entity tests an intangible asset for
References: 1. BrisConnections, 2012, “2012 Annual Report” 2. CPA Australia, 2013, “Accounting Handbook 2013”, Pearson, Australia 3. City North Infrastructure, 2012, “Airport Link”, http://www.citynorthinfrastructure.com.au/airport-link.php, accessed 15/05/2013 4. Oxford University, 2009, “Oxford Advanced Learner’s Dictionary”, Oxford University Press, England 5. Wikipedia, 2013, “Airport Link, Brisbane”, http://en.wikipedia.org/wiki/Airport_Link,_Brisbane#cite_note-4, accessed 15/05/2013 6. Wikipedia, 2013, “Project Finance”, http://en.wikipedia.org/wiki/Project_finance, accessed 15/05/2013