You are the financial controller of BYD Ltd which is listed firm and a parent entity that prepares consolidated financial statements in accordance with Australian Accounting Standard Board (AASB) / International Financial Reporting Standards (IFRS). You have recently prepared the draft financial statements for the year ended 30 June 2023 which are due to be published shortly. The Chief Executive Officer (CEO) has reviewed the draft consolidated financial. None of the subsidiaries are listed entities but all prepare their financial statements in accordance with AASB / IFRS. The CEO has the following questions arising out of the review:

Question:

When I read, the relevant notes relating to intangible non-current assets in the draft consolidated financial statements, I noticed that this figure on intangible asset includes brand names associated with subsidiaries which we have acquired in recent years. However, the brand names which are associated directly with products sold by BYD (the parent entity) are not included within the non-current assets figure. This is another inconsistency that I dont understand.

Please explain how this practice can be in line with AASB/IFRS requirements. One final question concerning the above issue: Am I right to assume that we can use the fair value model to measure intangible assets very similar to property, plant and equipment. Required: Provide answer to the above question asked by the CEO. Your answer should refer to relevant provisions of AASB.