+91-9519066910

Assignment

Computing Skills Assignment Help

Matlab Assignment Help

BAP62 Intangible Assets

Rating:
BAP62 Intangible Assets

Introduction

The given report has been prepared in a specific format so that this will help to gain a thorough understanding of accounting done in relation to the intangible assets. This is necessary so that proper segregation can be done between tangible and intangible assets. For the easy reference and understanding of the concept in detail, some business organization based in Australia has been taken and accordingly discussed in the report. This will help to create a better image of the concepts and every user and reader of the report can understand the concept of the report in a lucid manner. Thus, Australian-based business enterprises namely; Public water house Cooper, Deloitte Australia, Commonwealth Bank Australia along with some other business concerns has been taken into consideration in the following report. Accordingly, organizations belonging to different sectors have been considered. This will help to understand the detailed concept of particularly International Accounting Standard (IAS) – 38 has been discussed to throw some light on the applicability of the standard along with the provisions and accounting treatment mentioned in the concerned standard.

Literature Review 

Firstly, it is important to note that there can be different intangible assets. As such, the intangible assets can be goodwill, patent, trademark, copyright, and similar other assets. Afterward, the provisions can be better understood in an informative manner or approach.

As per the article published by Steven & Marshall, during the recent period the nature of assets owned or possessed by the business entities have shifted from tangible assets to intangible assets. As such, the proportions of tangible assets have decreased and conversely ratio of intangible assets has decreased. This has happened because the companies are realizing the relevance and importance of intangible assets.

As per the article published by Owolabi, intangible assets can be categorized into three parts. Accordingly, it can be segregated on the basis of either marketing or artistic, or technology. These intangible assets have different characteristics or features. However, the general characteristics of intangible assets remain the same in all the categories or classifications (Smalt & McComb, 2016). The article also states that there are different theories in relation to intangible assets. These theories are of five types. In other words, these theories can be categorized or classified into five parts. These are market value theory, fair value theory, agency theory, economic theory, and imperfect measurement theory.  

Different types of theory in relation to the intangible assets

Different theories prescribe the varied accounting treatment of intangible assets. For instance, the market theory states that the purchased intangible asset (whether goodwill or another intangible asset) should be recorded at the market value. In the same manner, as per the fair value theory, the intangible asset should be accounted for as per the fair value (Smalt & McComb, 2016). Generally, the fair value and market value are the same and akin. Moving further, the imperfect measurement theory is applied when it is difficult to determine the value of intangible assets directly. As per this theory, the value of a close substitute of an intangible asset will be treated as the value of the intangible asset and properly accounted for. Lastly, the economic theory states that the intangible asset plays an important and significant role in the macroeconomic development of the country and the world economy as a whole. Thus, it can be said that the scope and ambit of an intangible asset are extensive.

Application of Accounting Criteria relevant for theme selected 

There is a specific standard that explains in detail the accounting for intangible assets. IAS-38 deals with this matter. The standard has been issued by IASB. The standard states that there will be different accounting treatments of self-generated assets (internally generated assets) and separately acquired intangible assets (purchased assets). Thus, it is important to understand the mode through which assets have been acquired or purchased. The standard states that generally, internally generated intangible assets should not be recognized in the financial statements of the concerned business organization. However, there are some exceptions as well in which the intangible assets need to be reported and disclosed in a different manner.

As per the exception, on fulfillment of six conditions, intangible assets should be appropriately accounted for. Accordingly, such self-generated assets should not be capitalized and expenditure incurred towards such internally generated assets can be claimed as a deduction. However, expenditure incurred in relation to these intangible assets should be in relation to research, start-up, advertising, and other incidental costs. Other expenses in relation to intangible assets cannot be claimed as a deduction. The standard also states that intangible assets acquired should be amortized by following a reasonable basis or criteria. In case, the organization did not amortize on the belief that the asset has an indefinite useful life, a proper explanation should be given and this should be reported in the financial statements.

The article states that the accounting treatment of intellectual property whether self-acquired or purchased. Thus, there is no distinction between intellectual property. There is a specific provision for intangible assets since both tangible and intangible assets differ in properties. 

Measuring "intangibles" such as customer goodwill (or satisfaction) or know-how and skill (perhaps error rates) to look at strategic issues or other business intelligence and analysis such as risk management, marketing strategy, and human capital and/or process effectiveness is a different animal.  In those cases, analysis of intangibles relies frequently on proxies and estimation based on the simplest, most readily identified and input data points, including performance measures, numbers of customer "complaints", surveys and testing, compliance violations, new project development, etc. across and as compared to an industry, or even across subsets of the process in order to identify or measure value.

 



 DOWNLOAD SAMPLE ANSWER


   

Details

  • Number of views:
    43
  • PRICE :
    AU$ 0.00

Submit Works

Drop File To Upload Or
BROWSE
Assignment Help Australia

Our Top Experts


Karen Betty

Holding a PhD degree in Finance, Dr. John Adams is experienced in assisting students who are in dire need...

55 - Completed Orders


Daphne Lip

Canada, Toronto I have acquired my degree from Campion College at the University of Regina Occuption/Desi...

52 - Completed Orders


Mr Roberto Tuzii

Even since I was a student in Italy I had a passion for languages, in fact I love teaching Italian, and I...

102 - Completed Orders


Harsh Gupta

To work with an organization where I can optimally utilize my knowledge and skills for meeting challenges...

109 - Completed Orders


ARNAB BANERJEE

JOB OBJECTIVE Seeking entry level assignments in Marketing & Business Development with an organization...

202 - Completed Orders


KARAN BHANDARI

Current work profile Project manager- The Researchers Hub (2nd Jan 2016 to presently working) Researc...

20 - Completed Orders


Tan Kumar Ali

Sales Assistant, Mito Marina Assigned to the Stationery dept – assisted in merchandising, stock taking...

100 - Completed Orders


Wesenu Irko

Personal Profile Dedicated and highly experienced private chauffeur. High energy, hardworking, punctua...

200 - Completed Orders