. In 2013 The Warehouse acquired 100% of Noel Leeming.

The below extract is from the Warehouses 2018 Annual report. It shows that the Warehouse has recognised a value of $15,500 for the Noel Leeming brand. However, consistent with the standard for Intangible Assets, there is no value recognised for the brand of the Warehouse. Explain why the Warehouse can recognise the Noel Leeming Brand, and whether you think this differential treatment provides useful accounting information.

The below extract is from the Warehouse's 2018 Annual report. It shows that the Warehouse has recognised a value of $15,500 for the Noel Leeming brand. However, consistent with the standard for Intangible Assets, there is no value recognised for the brand of the Warehouse. Explain why the Warehouse can recognise the Noel Leeming Brand, and whether you think this differential treatment provides useful accounting information. (6 Marks) Impairment testing NOEL LEEMING 2018 $000 31776 15,500 47.276 2017 $000 31776 15,500 47,276 Goodwill Brand names Closing carrying amount Key assumptions EBIT margin (%) Terminal growth rate (%) Post-tax discount rate (%) 31 17 10.9 26 17 10.9