Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help QUESTION 4: 15 Marks The following information relates to NamResearchers (Pty) Ltd as at 31 December 2019: -Patents Cost N$2,000,000 Purchase date 02
please help
QUESTION 4: 15 Marks The following information relates to NamResearchers (Pty) Ltd as at 31 December 2019: -Patents Cost N$2,000,000 Purchase date 02 February 2017 Useful Life 25 years -Trade secrets Cost N$16,000,000 Purchase date 01 January 2020 Legal costs on purchase transaction N$ 160,000 Namresearchers (Pty) Ltd amortizes its intangible assets on a straight-line basis, with a nil residual value. Additional information: 1. A new product entered the market on the 21 May 2020 reducing the patented products of NamReasechers significantly. Estimated revenue to be earned over the remaining useful life of the patent was significantly lower than the expected. Valuators have indicated the below: Market value as at 21 may 2020: N$ 8,000,000. Selling fees: 12000 Expected revenue on royalties N$800,000 per annum for the remaining useful life. Costs on annual royalties N$100,000 Required: 4.1 Provide the accounting policies to be included in NamPatenters (Pty) Ltd 4.2 Disclose the intangible assets in the financial statements of NAmPatenters (Pty) Ltd for the year ended 31 December 2020. 4.3 Discuss the accounting treatment of internally generated Goodwill in the financial statements of NamPatenters (Pty) LtdStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started