You have been approached by a large accounting firm to provide advice in relation to Virtual assets. In particular, the managers of the firm have requested that you provide a report outlining the following: • what are Virtual assets? How are they different to the commonly understood notion of intangible assets? • Should these items be recognised on the financial statements or would disclosure in the notes be sufficient? Provide real world examples. (Approximately 350 words) • Is income earned in a virtual world “real”? If so, should such profits be reported? Need examples. (Approximately 350 words) • If we are required to recognise these items on the financial statements then we need to be able to measure them. What measurement model would you recommend? (Approximately 350 words)
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