Applicability of Accounting Standard (AS) 26‚ Intangible Assets‚ to intangible items 1. Accounting Standard (AS) 26‚ ‘Intangible Assets’‚ came into effect in respect of expenditure incurred on intangible items during accounting periods commencing on or after 1-4-2003 and is mandatory in nature from that date for the following: (i) Enterprises whose equity or debt securities are listed on a recognised stock exchange in India‚ and enterprises that are in the process of issuing equity or debt
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relocation and reorganisation costs are all recognised as expenses. Purchased Intangibles • If value of an intangible can not be valued reliably‚ while purchasing a company‚ include the value as a part of goodwill A special note on goodwill • Inherent goodwill Vs Purchased goodwill • How is it different? – Balancing figure – Cant be sold as a separate asset Research and Development • Research – Initial investigation done to acquire new scientific knowledge or understanding • Development
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disadvantages of State Control of Industry. Certain industries are under state control in many countries. It plays an indispensible role for economic development of nations. The term state control means to govern industry in order to develop the economy and to provide better services and facilities for the public. In other words‚ state control refers to the industry owned by the state or government for national welfares rather than profit. Research has shown state control of industry as a controversial issue
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attributable acquisition related costs accounted for? Why? (1 Mark) 6. In accounting for a business combination assets and liabilities acquired and assets and equity given up are measured at fair value on acquisition date. Does this mean that goodwill is also measured at fair value on that date? (1 Mark) 7. On 1 April 2013‚ Lemon Ltd acquired all of the issued shares of Orange Ltd. At this date‚ the share capital of Orange Ltd consisted of 70 000 ordinary shares issued at $2.60 each. Under
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AGRICULTURE INDUSTRY LINKAGES IN THE ECONOMY OF JAMMU AND KASHMIR A SYNOPSIS SUBMITED TO SCHOOL OF ECONOMIC DEVI AHILIYA UNIVERSITY FOR THE DEGREE OF MASTER OF PHILOSOPHY 2012 - 2013 SCHOLAR GUIDE SAMIR UL HASSAN DR. KANHAIYA AHUJA
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Q1 1. an intangible asset should be amortised and written off on a systematic basis over the asset’s economic life 2. internally generated goodwill may be carried in the statement of financial position if the value can be determined with reasonable certainty 3. internally generated brands can never be recognised as intangible assets Which of the following is consistent with IAS 38 Intangible assets? A 1 and 2 only B 1 and 3 only C 2 only D 3 only Q2 During 20x7‚ Research
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| Less: Accumulated depletion | 108‚000 | 392‚000 | | Buildings | 1‚100‚000 | | | Less: Accumulated depreciation | 650‚000 | 450‚000 | | Total property‚ plant‚ and equipment | | | 842‚000 | Intangible assets | | | | Goodwill | | | 410‚000 | Do It 9-4 Intangible | Rights‚ privileges‚ and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance. | Amortization | The allocation of the cost of an intangible
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IAS 38 INTANGIBLE ASSETS | | |HISTORY OF IAS 38 | |February 1977 |Exposure Draft E9‚ Accounting for Research and Development Activities | |July 1978 |IAS 9 (1978)‚ Accounting for Research and Development Activities | |1 January 1980 |Effective Date of IAS 9 (1978)
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operation. …………………………………………………. Training Expense in Income Statement 10. Purchase cost of a franchise. ……………………………. Intangible Assets in Balance Sheet 11. Goodwill generated internally. ………………………….…. No Recording 12. Cost of testing in search for product alternatives. …………………………………………………. R& D Expense in Income Statement 13. Goodwill acquired in the purchase of a business. …………………………………………………. Intangible Assets in Balance Sheet 14. Cost of developing a patent. R& D Expense in Income
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Summary of Reacquired Franchise Rights It has come to our attention that much of Roman Holiday’s recent revenue growth came from acquisition of franchise right and existing restaurants rather than real growth in the franchise. Management is aware of these issues and may be feeling some pressure to meet growth targets and earnings forecasts. In the following working papers‚ we address this potential issue by reviewing the various accounting treatments for the reacquired franchise rights. We also
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