During The Current Fiscal Year An Entity Subject To Ifrs Purchased The Rights To

During the current fiscal year, an entity subject to IFRS purchased the rights to develop a video game base on a popular comic book hero. The entity paid $1,400,000 for this exclusive right, incurred an additional $950,000 in programming costs to create the game, and $300,000 in promotional costs. The entity capitalized $2,650,000 as an intangible asset. The company expects to sell 100,000 copies of the game each year for the next 6 years at a price of $9.

Required –

Do these expenditures qualify as intangible assets? Explain. 

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