IAS 38 Intangible Assets outlines the accounting treatments for intangible assets. An intangible asset is defined as identifiable non-monetary asset that has no physical form which is controlled by the entity and is expected to generate future economic benefits (Jaroslav and Alois, n.d.) . The definition of assets has identified 3 key characteristics. Firstly, the intangible asset has to be identifiable. The controlled airspace met the identifiable criterion as it arises from legal rights. According
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Intangible Assets BUS 303 Human Resources Management Professor Robert Hamamoto Pamela Conlee July 7, 2015 Human Resources Management is the means by which an organization utilizes its employees to bring out their maximum potential. This paper’s purpose is to enlist the reader in the importance of Human Resources Management and how the many different aspects of HRM work together to reach this objective. While some argue that human resource management is best handled by the inner workings
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E12-1 (Classification Issues—Intangibles) Presented below is a list of items that could be included in the intangible assets section of the balance sheet. Instructions (a) Indicate which items on the list would generally be reported as intangible assets in the balance sheet. (b) Indicate how, if at all, the items not reportable as intangible assets would be reported in the financial statements. 1. Investment in a subsidiary company. 2. Timberland. 3. Cost of engineering
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be quantified but it can be categorized as a companies intangible assets. This means that over the years the market value that was related to tangible assets has decreased and there has been an increase in intangible assets. The percent of market value related to tangible assets in 1982 was about 62 percent, and the intangible assets were made up of about 38 percent. Then in 2000, we could see a significant transformation towards intangibles. There was only 15 percent of market value associated with
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tests their goodwill and intangible assets for impairment at minimum, annually. They may even sooner depending on when the events of changes in circumstances show that these assets may be impaired. Therefore, Apple does not amortize their goodwill and intangible assets with indefinite useful lives. Intangible assets with definite useful lives are amortized over a period of their useful lives, and after are reviewed for impairment. Currently, Apple’s acquired intangible assets with definite lives are
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QUIZ QUESTIONS IAS 38: INTANGIBLES 1. Define an “intangible asset”. (1 Mark) 2. Define an “active market”. (1 Mark) 3. Define “research”.(1 Mark) 4. Define “development”. (1 Mark) 5. When does an asset meet the identifiability criterion? (1 Mark) 6. When should an intangible asset be recognised? (1 Mark) 7. How should an intangible asset be measured initially? (1 Mark) 8. How should internally generated goodwill be accounted for? (1 mark) 9. Name two (2) of the criteria
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company with profit after tax reaching $38 million and revenues of $219.8 million. Trading in ABC Learning shares was suspended in August 2008 after the company failed to release its earnings for the 2007-08 financial year. Despite selling off assets, the company fell into receivership in November 2008 after increasing debt servicing obligations and its auditors were unable to sign off on its accounts. The federal government injected $22 million into the company to keep its childcare centers open
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transaction has been accounted for in accordance with ASC 805, Business Combinations. We have determined that consideration transferred amounts to $135 million, land and buildings should be recorded using the “in-use” valuation premise and intangible assets should be recorded at fair value. The following pronouncements have been used in making our decision: ASC 718, ASC 805-10-25-23, ASC 805-20-25-4, ASC 805-20-30-6, ASC 805-30-25, ASC 805-30-30-7, ASC 805-30-30-9, ASC 805-30-30-11, ASC 820-10-35-10
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38 - Intangible Assets, to account for its research and development expenditures (see IAS 38 excerpts at the end of this case). As such, the company capitalizes certain R&D costs and expenses others. What factors does Volvo Group consider as it decides which R&D costs to capitalize and which to expense? c. The R&D costs that Volvo Group capitalizes each period (labeled Product and software development costs) are amortized in subsequent periods, similar to other capital assets such
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economy has undergone a rapid transformation, from an economy driven by “traditional hard assets- plants, warehouses and the like”, to an economy driven by patents, software, intellectual property, and brands. These items fall into a category that has become hugely important in the world of financial reporting, “intangible assets”. Increasingly, the value of a firm is derived not from its tangible assets such as stock, property, plant and equipment but by its knowledge capital, its employees, even
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