Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ Ltd reports the following intangible assets on 30 June 2020: Patents at directors' valuation $160 000 Less Accumulated amortisation (40 000) Brand name at

image text in transcribed

XYZ Ltd reports the following intangible assets on 30 June 2020: Patents at directors' valuation $160 000 Less Accumulated amortisation (40 000) Brand name at fair value 100 000 Licence at cost Less Accumulated amortisation $100 000 (10 000) Additional information: Patents were acquired at a cost of $80 000 on 1 July 2016. They have an estimated life of 16 years, of which 12 years remain on 30 June 2020.- The brand name is stated at fair value and is internally generated. The licence, acquired one year ago, has a 10-year life of which nine years remain. The licence can be traded in an active market and has a fair value of 1.1 million. Some of the treatments by XYZ may be inconsistent with the accounting standards AASB 138 "Intangible Assets." REQUIRED: For EACH intangible asset, specify and briefly justify the following accounting decisions in accordance with AASB 138 Intangible Assets?:/ (1) How should the intangible asset be initially recognized?" (2) What is the appropriate subsequent measurement basis (i.e., measurement model) of the recognised asset? (3) Is the recognised asset subject to amortization? (4) Calculate the carrying amount of each asset at 30 June 2020. No journal entry is required

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2021

Authors: Bernard J. Bieg, Judith A. Toland

31st Edition

0357358287, 9780357358283

More Books

Students also viewed these Accounting questions

Question

Cite ways to reduce excess spending.

Answered: 1 week ago

Question

List the components of the strategic management process. page 77

Answered: 1 week ago