Question
QUESTION 2 - PART 1: 1. - Delta Ltd has spend 6 mln in developing a new accounting software for its payment system
QUESTION 2 - PART 1:\ \ 1.\ \ - Delta Ltd has spend 6 mln in developing a new accounting software for its payment system for the period of 1 Jan 2021 - 31 Dec 2022 (it is spread equally across 24 months). The company is able to demonstrate that from 1 March 2022 the production process met the criteria for recognition as an intangible asset. The financial year end is 31 Dec (4 marks)\ \ - On 1 Jul 2022, Berta Ltd acquired another rival Gringo Ltd for a total sum of 450 mln. On this date, a brand valuation expert valued "Gringo" brand at 120mln on the basis of useful life of 20 years. Other net assets were deemed to have a fair value of 240 mln (4 marks) \ \ Required:\ \ Explain, with reasons, how the costs given above should be treated in the financial statements for year ending 31 Dec 2022 in relation to intangible assets per IAS 38.
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