At 1 January 2015 Sonalt Ltd, an Internet service provider, owned the following intangible assets: Description...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
At 1 January 2015 Sonalt Ltd, an Internet service provider, owned the following intangible assets: Description Additional information Internet domain name Acquired in a separate acquisition on 1 January 2014 for Ksh Software Customer list Ringtones 30,000,000. The useful life is estimated to be 10 years. Acquired in a separate acquisition on 1" January 2015 for Ksh 5,000,000. Estimated useful life-ten years from date of development. Remaining useful life-five years. Acquired in a separate acquisition on 1 January 2014 for Ksh 10,000,000. Estimated useful life-five years from date of acquisition. Internally developed. Estimated useful life-three years from date of development. On 30 June 2016 Sonalt Ltd acquired ringtones developed by an independent third party for Ksh 2,000,000. The useful life of the ringtones is expected to be three years from the date of acquisition. On 30 September 2016 Sonalt Ltd acquired 60 per cent of the issued share capital of Sizungumzi Ltd in a business combination when the fair value of Haskin Ltd's identifiable intangible assets were: Description Internet domain name Software Customer list Advertising contracts Ksh Additional information 50,000,000 Unable to make a reliable estimate of the useful life. 60,000,000 Internally developed. Estimated remaining useful life ten years. 40,000,000 Internally generated. Estimated remaining useful life five years 200 50,000,000 Five-year contracts (all contracts started on 1 October 2015) for customers' advertisements to appear in a designated space on Sizungumzi Ltd's website. Customer list Advertising contracts years. 40,000,000 Internally generated. Estimated remaining useful life five years 50,000,000 Five-year contracts (all contracts started on 1 October 2015) for customers' advertisements to appear in a designated space on Sizungumzi Ltd's website. In-process research and development 8000,000 Various current research and development projects to enhance the value of the services offered by the entity. In the last quarter of 2016 Haskin Ltd incurred Ksh 1,000,000 on research and development. The project was completed during the period. At 31 December 2016 Sonalt Ltd confirmed its previous assessments of the group's intangible assets. Page 5 of 10 Draft and extract showing how the intangible assets could be presented and disclosed in the financial statements of Hakuna Matata Ltd Group for the year ended 31 December 2016. (20 Marks) At 1 January 2015 Sonalt Ltd, an Internet service provider, owned the following intangible assets: Description Additional information Internet domain name Acquired in a separate acquisition on 1 January 2014 for Ksh Software Customer list Ringtones 30,000,000. The useful life is estimated to be 10 years. Acquired in a separate acquisition on 1" January 2015 for Ksh 5,000,000. Estimated useful life-ten years from date of development. Remaining useful life-five years. Acquired in a separate acquisition on 1 January 2014 for Ksh 10,000,000. Estimated useful life-five years from date of acquisition. Internally developed. Estimated useful life-three years from date of development. On 30 June 2016 Sonalt Ltd acquired ringtones developed by an independent third party for Ksh 2,000,000. The useful life of the ringtones is expected to be three years from the date of acquisition. On 30 September 2016 Sonalt Ltd acquired 60 per cent of the issued share capital of Sizungumzi Ltd in a business combination when the fair value of Haskin Ltd's identifiable intangible assets were: Description Internet domain name Software Customer list Advertising contracts Ksh Additional information 50,000,000 Unable to make a reliable estimate of the useful life. 60,000,000 Internally developed. Estimated remaining useful life ten years. 40,000,000 Internally generated. Estimated remaining useful life five years 200 50,000,000 Five-year contracts (all contracts started on 1 October 2015) for customers' advertisements to appear in a designated space on Sizungumzi Ltd's website. Customer list Advertising contracts years. 40,000,000 Internally generated. Estimated remaining useful life five years 50,000,000 Five-year contracts (all contracts started on 1 October 2015) for customers' advertisements to appear in a designated space on Sizungumzi Ltd's website. In-process research and development 8000,000 Various current research and development projects to enhance the value of the services offered by the entity. In the last quarter of 2016 Haskin Ltd incurred Ksh 1,000,000 on research and development. The project was completed during the period. At 31 December 2016 Sonalt Ltd confirmed its previous assessments of the group's intangible assets. Page 5 of 10 Draft and extract showing how the intangible assets could be presented and disclosed in the financial statements of Hakuna Matata Ltd Group for the year ended 31 December 2016. (20 Marks)
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
Rogers Products uses a periodic inventory system. The company s records show the beginning inventory of PH 4 oil filters on January 1 and the purchases of this item during the current year to be as...
-
Pelican Systems Inc. (PSI), a public company, develops and manufactures equipment that is sold to technology, communications, and airline enterprises, and designs and installs customized information...
-
An accounting firm has just contacted your consulting business for assistance. They want to hire someone to do accounting and payroll. The bookstore is downstairs, while the office is upstairs in an...
-
Write the shear and momentfunctions and draw shear and moment diagrams for the following frames: (a) Support A is a roller, B and C are fixed and support C is a pin.
-
Evaluate the range of restructuring options for an existing bricks and mortar organization to move to a bricks and clicks or clicks-only contributing a higher online revenue.
-
Balance the following equations. 1. CO2 + H20 C,H12O6 + O2 2. SiCl + H20 H4SIO4 + HC1 3. Al + HCI AICI, + H2 4. Na2COs + HC1 NaCl + H20 + CO2 5. CH6O2 + O2 - CO2 + H2O 6. Fez(SO4)3 + KOH K,SO, +...
-
You are the Chief Accountant of JKL plc, a UK company that has three wholly-owned overseas subsidiaries. - Company A is located in Spain. The company assembles computer terminals from materials...
-
The financial statements for Nike, Inc., are presented in Appendix B at the end of the text. The following additional information (in thousands) is available: Accounts receivable at May 31, 2008........
-
4. Suppose that a life insurance company sells a ve-year guaranteed investment contract {SIC} that guarantees an interest rate of 2.5 percent per year on a bond-equivalent yield basis {or...
-
h.edu/webapps/assessment/take/take jsp?course.assessment.ids 205926 1&course id 215794 18content.id 4753948.18question num 27 CSUDH portal Interval Internatio SAM- Activity Cal temaining Time: 35...
-
Ms. Lo attributes her dominant style of conflict management, in part, to her cultural heritage growing up in Hong. Which of the following situations that commonly produce conflict could be related to...
-
Create a C program to implement a basic shell with support for executing commands, piping, and redirection.
-
Problem 5. Efficient Frontier and the CAPM. Short answer questions. 1. Explain why the efficient frontier must be concave. 2. Suppose that there are N risky assets in an economy, each being the...
-
A stock is priced at $48.24 per share. The stock does not pay dividends. A European put option on the stock is priced at $1.74 per share. The put option expires in 2 months and has a strike price of...
-
1. Explain how sustainable marketing meets consumers' needs. 2. How do marketing efforts impact society? Discuss both sides of the issue. 3. Describe the sustainability principles marketers can use...
-
A deferred perpetuity that will make its first payment of $1m atthe end of the 10th year has a present value of $_______. Use 7.25%as the annual rate. A. 6.8500m B. 7.3466m C. 7.1942m D. 6.923m
-
A genetically engineered strain of Escherichia coli (E. coli) is used to synthesize human insulin for people suffering from type I diabetes mellitus. In the following simplified reaction scheme,...
-
Assume that you have been asked to place a value on the ownership position in Briarwood Hospital. Its projected profit and loss statements and equity reinvestment (asset) requirements are shown below...
-
Assume that you have been asked to place a value on the fund capital (equity) of BestHealth, a not-for-profit HMO. Its projected profit and loss statements and equity reinvestment (asset)...
-
Where would you be able to bring about cost savings as a program manager for a company? Discuss these using the standard project constraints. (Lo 2)
Study smarter with the SolutionInn App