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istmally genented ? ? A S 3 8 relises on the exeicept of fier valee to messure imtangities, but the Asength of the fir value
istmally genented relises on the exeicept of fier valee to messure imtangities, but the Asength of the fir value thet viries dapending on the ebjective.
Ngasini Mic Ngasin has enteres ints the foltowity tramsactions diring the financial year esaded March The company steks to maximise the reparied value of its uasets whanever possibia hrudest serviees to a ragies within Putuland. This Bcence would have been exiginally isemed by the goverment for a tenyear period at aeto coos, but has a market value due to is exctorivity. The cust of the licesce oo Ngasini was million, and the remaining useful cunowivic life was ycurs.
ii On April Ngasini coenmenwal work co developing a new technology to enhance the quality of the radiu broadeasts. It purthaswd a number of patents as a cost of million and spent a liarther to toillion developing the tetioolggy, as wcll as million researching the intemational market for the tectanelogy in advance of its launch. The directors of Ngastni were conffifent throughout the Gvelopment peocess that the technology liad massive patertial to generate future coonomic benefit. On il March thas upinion was validated when a rival bruadcaster offered Ngasini million for its partially developed technology project iii As a result of Ngasini's growing raputation in the broadeasting industry, the directors commissineed a consulting firm to value its frand name. The brand nants has not been recognised as an asset in the finatecial statements to date. On March the consultamts issued a report stating that the fair value of Ngasini's brand was e million.
Requirement:
a Explain the requirements of LAS Lntangible Assets with respect to the initial recognition
b In each of the scenarios i to iv above, prepare a briefing note for Ngasini's financial controlier advising on the appropriate accounting treatment for the intangible assets for year ended March marksTotal: MARKS
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