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ACC236 Question Explain with reason whether the following items can be recognized as an intangible non-current asset and its accounting treatment. Each situation is independent

ACC236 Question

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Explain with reason whether the following items can be recognized as an intangible non-current asset and its accounting treatment. Each situation is independent to one and another. 1) Marion Bhd. acquired a subsidiary during year. During the fair value exercise, it was found that the subsidiary had a brand name that had not been recognized by the subsidiary as it was internally generated. The professional valuer estimated that the value of the brand is RM 18,000. Apart from that, Marion Bhd. also found out about the subsidiary's customer list during the acquisition. However, the professional valuer unable to estimate the value of the customer list reliably. 2) Komeng Pharmaceutical Bhd. is developing a graphic card to be used in gamers' computer. During the year, RM 50,000 was incurred to pay the salaries of the company engineer and consultants who conducted basic tests on the existing graphic cards available in the market. Based on the findings, the company spend RM 150,000 on developing a new graphic card including the production of a basic model. However, the basic model was found to be unsuccessful. 3) KC Sdn. Bhd. is currently developing a filtering system to be used in various washing machine model. KC Sdn. Bhd. acquired a patent for SPRING150, a fibrous component from Fiza O Sdn. Bhd. for RM 185,000. KC Sdn. Bhd. made the purchase to enable the company to use of fibrous component in designing the filtering system. 4) Horland Kopitiam Sdn. Bhd. has been opening caf for the last 10 years. The business is very good and throughout the year, Horland has internally generated brand name call Horland Coffee. Everyone always associates the name Horland Coffee with Horland Kopitiam Sdn. Bhd. The company did not know how to treat this in their account. 5) Jenna Bhd. carries out research and development. In the year ended 31 March 2020, Jenna Bhd. incurred total costs in relation to project ABC of RM 900,000, spending the same amount each month up to 31 November 2019, when the project was completed. The project had been confirmed as feasible on 1 July 2019. The product produced by the project went on sales from 1 January 2020 and the product is expected to have a useful life of 8 years

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