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
Premium Goodwill Balance sheet Generally Accepted Accounting Principles
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
Premium Generally Accepted Accounting Principles Balance sheet Goodwill
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-
Premium Balance sheet Generally Accepted Accounting Principles Asset
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
Premium Generally Accepted Accounting Principles Asset Balance sheet
business activities‚ financial situation and some parts of the annual report such as PPE‚ intangible asset and Leased assets & liabilities. There are two main parts of this document. The first part is the industry analysis‚ which is through Porters 5 Forces to analyse the AGL’s position in its industry. The second part is the company analysis which concludes the introduction of main business of AGL and its financial performance. In addition‚ we compare the disclosure of PPE‚ intangible asset and leased
Premium Balance sheet Asset Goodwill
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
Premium Depreciation Depreciation Balance sheet
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
Premium Goodwill Balance sheet Asset
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
Premium Goodwill Business Asset
Pros and cons of mergers and business transfer Pros and cons of mergers and business transfer There are many ways of acquiring a business. Among them‚ there are mergers and business transfer that convert two different companies into a company‚ and comprehensive stock exchange and share acquisition allows for the acquisition of management control of other companies without changing the legal entity. To summarize the concept of mergers and business transfer: first‚ the merger is a method of amalgamating
Premium Asset Taxation Tax
AMALGAMATION‚ ABSORPTION & RECONSTRUCTION 1. Method to calculate Purchase Consideration: |Net Asset method |Intansic value method |Net payment method | |Agreed value of |MV of total assets xxx |Amalgamation in nature of: - | |assets taken over xxx |Less: MV of total Liab. xxx |Merger: Amount paid to Equity shareholders|
Premium Asset Balance sheet Goodwill