AYB200/Weekly Tutorial Solutions/Week 5 S1‚ 2013 Assets 2 (Intangible Assets) Based on Week 4 Due Week 5 (due 25th March) NOTE: Provide references for your answers and quote where you have written something that is word-for-word from a source Textbook Questions (15 marks): Challenging Question 29 (5 marks) Applicability of AASB 138: A taxi licence would be considered to be an intangible asset and must be accounted for in accordance with AASB 138. Intangible assets can be carried at
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impairment test. Therefore‚ companies have to be required to test goodwill and other intangible assets‚ such as goodwill‚ brand name‚ financial assets‚ and investments for potential impairment on an interim basis. We know goodwill is an important part of total value of company. If any company acquires any other company‚ goodwill would be a vital indictor to determine the acquisition value. Thus‚ impairment of intangible assets such as goodwill is extremely important for any accountant. Question 2: Which
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Advanced Financial Accounting (M) 2014 Assignment 1 Answer to Assignment 1 Question 1 First method is ‘immediate write- off’‚ which leads to consuming of shareholders’ equity and changeable of rate-of-return measures. With this method‚ goodwill will remain in the pre-regulation period. Second method is ‘systematic write- off’‚ which is regularly written off over a limited period. This method is also called amortization that is under AAS 18 and AASB 1013. The third method is ‘ad- hoc write-
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employee‚ there must be precise communication with clients regarding topics that include adjusting lowering cost of market inventory on valuation‚ capitalizing interest on building construction‚ recording gain or loss on asset disposal and adjusting goodwill for impairment. Market Inventory There are various ways to lower the market inventory on valuation. In some cases it is permissible to reduce the recorded value of inventory to the lower of its cost or market value‚ providing the goods are not
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The other major part of Eagle’s business that we must investigate for Eagle’s future is the impairment of cash generating unit (CGU) in Serbia to do this we must look at the goodwill and determine if it has been impaired under IFRS and U.S. GAAP. To do so we must compare the carrying amount of the unit‚ including the goodwill‚ with the recoverable amount of the unit. If the recoverable amount of the unit
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Part 1: Goodwill and Discontinued Operations a) Carrying value of goodwill 24 June 2012 The carrying value of goodwill in Woolworth’s consolidated financial statements was $3221.8 Million (M) at 24 June 2012. This figure is included within ‘intangible assets’ on the consolidated balance sheet and exact amount is disclosed in the Note 11 of Notes to consolidated financial statements (Woolworths 2012‚ p 126). b) Movements in carrying value of goodwill The carrying value of goodwill at the
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Goodwill for Impairment CLAUDIA Inc. has an internally generated goodwill and did not amortize or tested for impairment. They cannot amortize because measuring the components are complex and associating the costs incurred with future benefits are too difficult. Goodwill cannot generate cash flows independently and is made as a combination with other assets making up a business; it needs to be assigned to a reporting unit or cash-generating unit in order to test for impairment. Under ASPE‚ the impairment
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issued Statement No. 121 "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of". The statement established accounting standards for the impairment of long-lived assets‚ certain identifiable intangibles‚ and goodwill related to those assets to be held and used. The statement also established accounting standards for the disposal of long-lived assets and certain identifiable intangibles. (fasb.org/stsum121) However‚ shortly after Statement 121 was released numerous
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which we allocated the purchase price were goodwill of $7.1 billion‚ identifiable intangible assets of $1.6 billion‚ and unearned revenue of $222 million. The goodwill recognized in connection with the acquisition is primarily attributable to our expectation of extending Skype ’s brand and the reach of its networked platform‚ while enhancing Microsoft ’s existing portfolio of real-time communications products and services. Microsoft assigned the goodwill to the following segments: $4.2 billion to
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Intangible Assets: Intangible assets consist of items that are not tangible or in other words‚ are not able to be touched or seen even though money may have been paid to purchase them. Some common examples include Goodwill‚ Patents‚ Copyrights‚ Trademarks‚ Organization Costs‚ and Loan Fees. These intangible assets can be developed over a period of time by building up customer lists or by investing money into them or they can be purchased from another individual or entity. Types
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