There are currently limited circumstances in which intangible assets can be recorded in the financial statements...

There are currently limited circumstances in which intangible assets can be recorded in the financial statements of Australian companies. Do you think this is appropriate or do you think the accounting standards should allow more extensive disclosures of intangible assets? Justify your position and include an example?

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ekkarill92 answered 2 years ago

Topic: Intangible Assets Which of the following statements is incorrect regarding the recognition of intangible assets in a business combination

11. Topic: Intangible Assets Which of the following statements is incorrect regarding the recognition of intangible assets in a business combination:a. Intangible assets arising from contractual or legal rights are recognized separately from goodwillb. Intangibles that can be separated from the business and sold, rented or licensed are recognized separately from goodwillc. Separately recognized intangibles are identified as either limited life or indefinite life intangiblesd. The acquirer in a business combination does not recognize intangible assets unless they appear on...

Are there circumstances when financial statements can quantify volunteers' services?

Should all intangible assets (incl. intellectual capital) be reflected in financial statements to reflect the true...

Should all intangible assets (incl. intellectual capital) be reflected in financial statements to reflect the true value of a firm per IFRS? Do voluntary disclosures in this context make matters worse for stakeholders and/or preparers of company accounts?

Can you explain goodwill and intangible assets?

Why are some intangible assets not amortized and what is the implication be to the financial...

Why are some intangible assets not amortized and what is the implication be to the financial statements?

Intangible assets, what are they and how they show on a typical financial statement of a...

Intangible assets, what are they and how they show on a typical financial statement of a corporation? Patent, copy rights, trademarks, brands

The following if the financial statements of ABC Company Limited. 2018 2019 Assets Cash 3,641 4,500...

The following if the financial statements of ABC Company Limited. 2018 2019 Assets Cash 3,641 4,500 Short-term investments 10,000 24,300 Accounts receivable 316,080 175,600 Inventories 643,680 357,600 Total Current Assets 973,401 562,000 Gross Fixed Assets 601,475 245,500 Less: Accumulated depreciation 131,580 73,100 Net Fixed Assets 469,895 172,400 Total assets 1,443,296 734,400 Liabilities and Equity Accounts Payable 162,000 72,800 Notes Payable 360,000 100,000 Accurals 142,480 68,000 Total Current Liabilities 664,480 240,800 Long-term debt 500,000 161,716 Common stock (100,000 shares) 230,000 230,000...

During the current year, Cartwright Corporation’s accountant recorded numerous transactions in an account entitled Intangible Assets,...

During the current year, Cartwright Corporation’s accountant recorded numerous transactions in an account entitled Intangible Assets, as follows: Jan. 2 Paid incorporation fees. $17,500 11 Paid legal fees for the organization of the company. 7,500 25 Paid for large-scale advertising campaign for the year. 15,000 Apr. 1 Acquired land for $15,000 and a building for $20,000 to house the R&D activities. The building has a 20-year life. 35,000 May 15 Purchased materials exclusively for use in R&D activities. Of these...

Oriole Limited organized late in 2019 and set up a single account for all intangible assets....

Oriole Limited organized late in 2019 and set up a single account for all intangible assets. The following summary shows the entries in 2020 (all debits) that have been recorded in Intangible Assets since then: Jan. 2 Purchased patent (8-year life) $335,000 Mar. 31 Costs to search for new ways to apply patent that was purchased on Jan. 2 21,000 Apr. 1 Purchased goodwill (indefinite life) 305,000 July 1 Purchased franchise with 10-year life; expiration date July 1, 2030 251,000...

(TCO C) What are intangible assets? How are limited-life intangibles accounted for subsequent to acquisition? On...

(TCO C) What are intangible assets? How are limited-life intangibles accounted for subsequent to acquisition? On January 1, 2018, Molden Co. signed an agreement to operate as a franchisee of Mold Removal Co. for an initial franchise fee of $100,000. The agreement provides that the fee is not refundable and no future services are required of the franchisor. The agreement also provides that 5% of the Revenue from the franchise must be paid to the franchisor annually. Molden's revenue from...

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