proved that the outflow builds an asset so the company cannot capitalise the costs. 6. Identify three ways in which an entity may obtain an intangible asset. (1 Mark) * Separation acquisition * Purchase of a business that holds an intangible * Internally generate the asset 7. Where an intangible asset has been separately acquired how is its cost measured? (1 Mark) It is valued at the cost paid for it at the date it was purchased. Amortization and appreciation are then based on that fair value
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grow or die”. In past hundred years in US and Australia‚ many companies have achieved their goal of expansion through business combinations. Such expansion can be of two types: 1) Internal expansion 2) External expansion A firm can expand internally by expanding its research and development. External expansion is when a business tries to expand by acquiring one or more other firms. This is also termed as Business Combination or Mergers or Acquisitions. This form of expansion is more popular
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liabilities are monies owe to others‚ and owner’s equity is the assets minus the liabilities. The income statement reports revenue and expenses for a period. Revenue is the money that a business earns by selling goods or services. Expenses are the money used in the process to earn the revenue. Google’s revenue is generated primarily from advertising online. The excess of revenue over expenses is the net profit. Generally on a company’s balance sheet assets are listed in the order in which they will
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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) Inglis Ltd has a number of taxi licences that are shown in the financial statements at cost. Can these licences be revalued to fair value and‚ if so‚ do they also need to be subject to periodic amortisation? Yes‚ if these taxi licenses
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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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Coca Cola Amatil Brief Activities in Australia 2. Company’s brief financials 3. Company’s Strategy & Growth Drivers 2. Company’s Key Accounting Policies 1. Foreign currency translations (AASB 1012) 2. Inventories (AASB 1019) 3. Revenue (AASB 1004) 4. Changes in Accounting Policies (AASB 1001) 3. Flexibility in the Selection of Company’s Key Accounting Policies 4. Accounting strategy 5. Quality of Disclosures 6. Questionable accounting figures 7. Possibility to UNDO Distortions
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Maggiali took over Brando Vitali as a director of logistics. He followed his predecessor’s vision to create Just in Time Distribution system. However‚ after two years of trying‚ little progress was made. Maggiali had met resistance internally and externally. Internally sales and marketing departments were completely opposing new concept. Externally‚ distributors did not want to relinquish power over managing their own inventory. Although “total pasta consumption was relatively consistent throughout
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period of time. However‚ none of the regulatory or advisory agencies had established an absolute useful life designation‚ and the only available reference point at that time was the FASB Statement #86 of August 1985. It established that costs for internally developed software could be capitalized only from the point of “technological feasibility”‚ and therefore all planning‚ designing‚ coding and testing should be expensed. It further stated that the capitalization costs “could be amortized for up
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Kohinoor Mills Limited Submitted By: Faisal Qaiser Shehzad Section: C Instructor: Sumaira Sajjad Lahore School of Economics Working capital is a financial measurement that shows the amount of operating liquidity available to a business. The working capital of KML was a positive 598649621 showing that the business had plenty of current assets available to it in order to meet its current obligations. It remained negative from FY09-FY11 after which things started to get better and the working capital
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EXERCISE 3-3 (1) Determination and Distribution of Excess Schedule Company Parent NCI Implied Price Value Fair Value (80%) (20%) Fair value of subsidiary $340‚000* $272‚000 $ 68‚000 Less book value of interest acquired: Common stock ($10 par) $100‚000 Retained earnings 150‚000 Total equity $250‚000 $250‚000 $250‚000 Interest acquired 80% 20% Book value $200‚000 $ 50‚000 Excess of fair value over book value $ 90‚000 $ 72‚000 $ 18‚000 Adjustment
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