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A client of yours Sandfield Ltd (a television manufacturer), has come to you for advice on a number of financial reporting issues of which they

A client of yours Sandfield Ltd (a television manufacturer), has come to you for advice on a number of financial reporting issues of which they are unsure about the financial reporting treatment for the year ended 31 August 2022. You have received the following email.

TV Brand:

A few years ago we purchased the brand name Digitas to use to produce our own line of Televisions for 2,000,000. As sales of Digitas products are increasing we believe the brand name actually has a higher fair value and are aware a competitor bought a similar brand for 10,000,000 recently. Is it possible for us to revalue the Digitas brand to a higher fair value?

Required: Treatment of the above items for in the financial statements for the year ended 31 March 2021

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