A person who owns an asset realises the asset under the following circumstances:

• Sale, Exchange, Transfer: When the person parts with the ownership of the asset, including sale, exchange, transfer, distribution, redemption, destruction, loss, expiry, or surrender of the asset.
• Death: If the person who owns the asset dies, the asset is considered realised immediately before that person died.

Bad Debt: In the case of a debt claim owned by a person (other than a financial institution), the asset is considered realised if the person:
i) Reasonably believes that the debt claim will not be satisfied,
ii) Has taken reasonable steps in pursuing the debt claim, and
iii) Has written off the debt claim as a bad debt.

• Change in Characteristics: If the asset changes its original characteristics and is either a trading stock, a depreciable asset, or an investment asset.
• Change in Ownership: If the underlying ownership of the entity changes by more than 50% at any time within a period of three years, the assets and liabilities of that entity are considered realised immediately before the change occurred.
• Non-residency: When the person who is a resident in Ghana ceases to be resident, the assets owned by that person immediately before they became non-resident are considered realised.

(5 marks)