Question

Assume you are the financial controller of a new established company. The CEO has asked your...

Assume you are the financial controller of a new established company. The CEO has asked your choice of accounting policy regarding the measurement of intangible assets at the time of recognition and after the acquisition.

Required:

State your choice of accounting policy regarding the measurement of intangible assets at the time of recognition and after the initial acquisition. Explain the reason (s) of your choice (s). You should provide comments regarding the choice of accounting method.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

According to me firstly i would say that an  intangible asset should be recognised if, and only if:
(a) it is probable that the future economic benefits that are
attributable to the asset will flow to the enterprise; and
(b) the cost of the asset can be measured reliably.
21. An enterprise should assess the probability of future economic
benefits using reasonable and supportable assumptions that represent
best estimate of the set of economic conditions that will exist over the
useful life of the asset.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are the new controller for Banana, Inc.. The company CFO has asked you to develop...
You are the new controller for Banana, Inc.. The company CFO has asked you to develop the appropriate worksheets and then journal entries to support several lease contracts as applied based on the new lease regulations. Your accounting group provided you the following information regarding the lease: On January 2, 2019, Banana’s subsidiary, Cream, entered into an equipment lease for four years, with semi-annual payments, for a machine that had an eight (8) year life and a fair value of...
After several months of searching your company has just hired a new CEO. Your previous CEO...
After several months of searching your company has just hired a new CEO. Your previous CEO was hard-nosed and it was his way or the highway. During his tenure with the company employee withdrawal was at an all time high to the point where the good employees had left for greener pastures and you were left with employees with high levels of continuance commitment. You have great hope that the new CEO will be able to turn the company around...
our CEO has asked you to evaluate whether the firm should launch a new product. Information...
our CEO has asked you to evaluate whether the firm should launch a new product. Information provided by the consultant is as follows: $20,000 has been spent on doing a market survey, and this cost has been incurred regardless of whether the project is done or not. initial investment: $120,000 composed of $50,000 for the plant and $70,000 net working capital (NWC) Profits of $34,000 every year for 3 years after which the project ends and NWC is recovered. No...
You have been asked by the CEO of Gastric Anxiety Supplier (GAS) to evaluate the proposed...
You have been asked by the CEO of Gastric Anxiety Supplier (GAS) to evaluate the proposed acquisition of a new Standardized Test Templater (PowerPoint based) for the firm’s accounting area. A recently completed $100,000 marketing survey demonstrates a high demand for the product. The equipment’s basic price is $740,000 and it would cost another $220,000 to modify it for high altitude (Wasatch Mountain) use. The templater, which has a MACRS 3-year recovery period (recovery allowances of 33%, 45%, 15%, and...
You are the Chief Financial Officer of Incomprehensible Technologies Inc. (ITI). The CEO has asked you...
You are the Chief Financial Officer of Incomprehensible Technologies Inc. (ITI). The CEO has asked you to calculate the firm’s overall WACC. Your team of analysts has presented you with the following data: Common Stock: The company has 50,000 shares of common stock outstanding that sells for $10 per share. The stock’s beta is 1.8, Treasury Bills are yielding 2%, and the expected return of the market is 7%. Bonds: The company also has 400 bonds outstanding with a par...
When answering the provided questions, you must ensure that your answers address the questions, that your...
When answering the provided questions, you must ensure that your answers address the questions, that your answers have an Australian accounting/financial reporting focus, that your answers are internally consistent, and that the individual components of your answers provide a well-rounded argument that is easy to follow. The Chief Financial Officer (CFO) of Large Mart has been unable to find answers for two accounting problems. He has asked you to investigate the following questions and to write a report (including relevant...
You are a first year analyst at a boutique financial advisory firm. Your supervisor asked you...
You are a first year analyst at a boutique financial advisory firm. Your supervisor asked you to draft a “note” to (1) describe in detail how to determine the price and return(s) on a bond and (2) provide a detailed numerical example and narrative walking the reader through the principals, frameworks and processes. Your “Note” will be included in an in-house training package given to all incoming analysts. You wish you had access to a package when you joined the...
Assume that you work for a Fortune 500 level company at corporate headquarters. Due to your...
Assume that you work for a Fortune 500 level company at corporate headquarters. Due to your excellent performance and the fact that the CEO of your firm noticed that you had listed on your resume' that you had taken a graduate-level Management Accounting course from a reputable institution, the CEO has sent you an email containing a request that you respond to two very important questions. #1. What criteria should the operating units (i.e. producing segments of the firm) use...
Albert, CEO of XYZ, Inc., desires to expand the company’s sales through exports to three (3)...
Albert, CEO of XYZ, Inc., desires to expand the company’s sales through exports to three (3) foreign subsidiaries. Albert knows that the target subsidiaries are located in countries that require transactions to be denominated in the local currencies. Albert has researched foreign currency risk and knows that there is accounting exposure in accounting statements, operating exposure in future cash flows, and transaction exposure in outstanding obligations. Albert does not understand how these risks apply to XYZ, Inc. under his proposal...
The president of your company, MorChuck Enterprises, has asked you to evaluate the proposed acquisition of...
The president of your company, MorChuck Enterprises, has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's R&D department. The equipment's basic price is $79,000, and it would cost another $20,000 to modify it for special use by your firm. The chromatograph, which falls into the MACRS 3-year class, would be sold after 3 years for $26,800. The MACRS rates for the first three years are 0.3333, 0.4445 and 0.1481. (Ignore the half-year convention for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT