Question

Prior to Australia’s adoption of International Financial Reporting Standards in 2005, Australian accounting standards permitted the...

Prior to Australia’s adoption of International Financial Reporting Standards in 2005, Australian accounting standards permitted the revaluation of internally generated intangible assets.

Required:
Using the AREA framework, comment on the following statement:
There is an inconsistency in financial reporting standards, when Property, Plant & Equipment can be revalued under AASB 116, but according to AASB 138, certain intangible assets cannot be.

1: ANALYSE (30 – 50 words)
Identify the issue and why it matters. Determine what you need to find out.

2 ：RESEARCH & EVALUATE (300 words)                                                                                         

Discuss relevant facts and evidence, or issues.

3: ANSWER (50 – 100 words)

Provide your opinion based on your discussion of relevant facts, evidence, or issues.

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Answer #1

answer 1 -

Issue- A possible inconsistency in Australia's financial reporting standards.

Why it matters? - To ensure there is consistency between standards and to identify the reasoning, behind particular assets being excluded for an allowable revaluation.

What i need to find out?- 1. What assets are excluded in AASB 138?

2. What are internally generated intangible assets.

3. What do the included assets have in common?

4. What do the excluded assets have in common?

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