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Examine the requirements for measuring assets at fair value in the following accounting standard: AASB 138 Intangible assets a) Identify whether the parts of the

Examine the requirements for measuring assets at fair value in the following accounting standard: AASB 138 Intangible assets a) Identify whether the parts of the conceptual framework (e.g. the definitions, recognition criteria, qualitative characteristics) have been included in the standard. (1 mark) b) Identify any inconsistencies between the requirements in accounting standards and the conceptual framework. Why do you think these occur? (2 marks) c) While managers have incentives to transfer wealth from shareholders to themselves or from lenders to shareholders, there are various factors that can limit the wealth transfers. What are those factors, and how do they work to constrain the wealth transfers? In your answer refer to the incentives of directors in relation to the capitalisation of development costs under AASB 138 Intangible Assets and how these incentives can be restricted by both the shareholders and the creditors. (6 marks)

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