You are the director of finance for Orange, a listed entity in Melbourne which prepares consolidated financial statements in accordance with Australian Accounting Standard Board (AASB). The chief executive officer (CEO) of Orange has reviewed the draft consolidated financial statements of the Orange group and of a number of the key subsidiary companies for the year ended 30 June 2022. None of the subsidiaries are listed entities but all prepare their financial statements in accordance with AASB. The CEO has sent you an email concerning the following issue:

When, I read the disclosure note relating to intangible non-current assets in the consolidated financial statements, I noticed that this figure includes brand names associated with subsidiaries which weve acquired in recent years. However, the brand names which are associated directly with products sold by Orange (the parent entity) are not included within the non-current assets figure. I dont understand why it is not included. Please explain how this practice can be in line with AASB requirements. One final question: would I be right in thinking that, as with property, plant and equipment, we can use the fair value model to measure intangible assets?

Required:

Provide answers to the issue raised by the chief executive officer. Your answers should refer to relevant provisions of AASB.