INTANGIBLE ASSETS

Question 1(b) Read the following passage and answer the following question. As I was having my morning coffee in Farbak Caf, I overhead two young associates in deep conversation. They were discussing about the current client they were auditing, JalurLebar Corp. The discussion was related to customers' list that JalurLebar had bought. "The company paid significant amount of cash for the list of customers of telecommunications," one of them said. The young associate continued to mention that the list contained the names, addresses and phone numbers of all the clients. And, the buyer, i.e. JalurLebar intended to i ervies I thought it wasn't ethical to purchase customers list, but my concern brought to the detail of the accounting treatment. The auditors of the buyer said that the price paid for the customers list is an expense in the profit or loss. Required: (i) Based on the above scenario, identify and explain the relevant standard that is related (8 marks) (ii) Advise on the accounting treatment for JalurLebar on the purchase of customers' list, (5 marks) (Sub-total- 13 marks) Total 25 marksl to intangible assets according to the relevant accounting standard