First the intangible is an identifiable asset. Second the intangible is a non- monetary asset under the control of entity, and third and most important is that intangible assets do not have a physical…
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The important characteristic of intangibles is that they lack physical substance. It is very difficult to estimate the value of intangibles and there is a high degree of uncertainty regarding the length of time over which they will provide future benefits.
IAS 38 clarifies that intangibles should not be recorded as other assets. Also this standard does not apply to intangible held for sale in the normal course of business of the entity. Similarly differed tax assets, leases, assets arising from employee benefits, financial assets, mineral rights, and other exploration and evaluation assets, and most importantly goodwill arising from business combinations do not fall the preview of IAS 38.
The identifiable assets should be separable. The entity is in a position to sell, transfer, and license, rent or exchanges the intangibles. It is important to note that intangibles should be clearly distinguishable and controlled separately from the goodwill. Such identifiable intangibles may have arisen from contractual or other legal rights, whether those are transferable or not, or separable from the entity or other rights and obligations.
The initial accounting for intangible is largely dependent on whether they are purchased or developed internally. When intangibles are purchased from others, they are initially recorded at their cost. The amount capitalized will include the purchase price and, like other assets, costs of preparing them for their intended uses. As a result, costs of registration or legal fees related to acquisition are also capitalized. When intangibles are purchased in a business combination, the cost to be recognized is the fair value at acquisition. When intangibles are acquired free of cost or received as a grant, the fair value or nominal value and directly attributable costs of such intangibles is recognized.
All other costs of intangibles are charged to revenue. Internally generated intangibles are not recognized as
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Companies are under tremendous pressure from public at large to be socially responsible as their actions leave a significant impact on the environment and the society as well. While there are no set standards available as of now to report issues related to these, some guidelines have been prepared by the Global Reporting Initiative (GRI).
Critically assess how the use of IFRSs contributes to increased transparency for stakeholders, and the extent to which IFRSs can influence economic stability. You should develop your arguments in the context of appropriate accounting theory. The international business scenarios has evolved in the last decades more than it had for many previous years.
The paper comprises 3 questions, each related to aspects pertaining to environmental reporting. It begins with an initial introduction about the aspects of environmental compliance and reporting.The first question is in connection with two provided annual reports of Halma plc and United Utilities plc, which required critical evaluation adequacy of disclosures given in the reports regarding environmental reporting.
Introduction In today’s world the primary objective of a firm is to survive the cut-throat competition and one way to do that is to make more profits and add value to shareholders’ wealth.The ladder of success for any firm is ‘growth’ which can be achieved either by expanding existing resources or introduction of new products and services.
The company's management would like to use the balance sheet and income statement in order to determine if the company has been doing well and in accordance with benchmarks and budgets that was approved for implementation.
Company's management also wants to determine how it fares with their competitors located both within its country borders and also companies located outside its borders.
Effect of IFRS on the companies and economy: All listed companies have published the consolidated financial statements in accordance with IFRS. Even some non listing companies also have applied for IFRS. At the time of further implementation of IFRS in 2007, the assessment of the previous implementation is judicious.
These standard are rigid and do not vary from one business to another. Ever business is bound to follow these standards in order to maintain the usefulness of information that is displayed in financial
Had there been no framework, accounting standards would adopt the easier solution for a particular issue. A solution which is coherent with an interconnected theory of accounting would never be the choice. The Conceptual Framework