Accounting principles - intangible assets, Auditing

Accounting Principles - Intangible Assets

IFRS 3 prescribes the financial reporting through an entity whenever it undertakes a business combination. A business combination is the together bringing of part entities or businesses in one reporting entity.

Combinations of all business are accounted for through applying the purchase technique, such views combination of the business from the perspective of the acquirer. The acquirer is the combining entity which obtains control of the other businesses or combining entities acquire.

The acquirer procedures the cost of combination of a business as the combined of:

  1. The fair values, of assets given, at the date of exchange liabilities, incurred or assumed equity instruments issued through the acquirer, in exchange for control of the acquire;
  2. Any costs directly attributable to combination of the business.

Any adjustment to the cost of the combination, which is contingent on future events, is included in the combination of the at the acquisition date whether the adjustment is possible and can be measured reliably.

The acquirer assigns the cost of the business combination through recognizing the acquirer's identifiable assets and contingent liabilities at their fair value on the date of acquisition, except for non-current assets such are classified as held for sale in accordance along with IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations. That assets held for sale are known at fair value less costs to sell.

Kindness, to be the excess of the cost over the acquirer's interest in the net fair value of the identifiable liabilities, assets and contingent liabilities, is acknowledged as an asset.

Kindness is subsequently carried on cost less various accumulated impairment losses in accordance along with IAS 36 Impairment of Assets. Whether the acquirer's interest in the total fair value of the identifiable liabilities, assets and contingent liabilities exceeds the cost of the combination, the acquirer:

  1. Reassesses the measurement and recognition of the acquirer's identifiable liabilities, assets and contingent liabilities and the measurement of the cost of the combination;
  2. Distinguishes immediately in loss or profit any excess remaining behind that reassessment.

IFRS 3 identified the accounting treatment:

  1. For business combinations such are achieved in stages;
  2. Whether fair values can only be determined provisionally in the duration of acquisition;
  3. Whether deferred tax assets are found after the acquisition for the accounting is complete; and
  4. For previously found goodwill, opposite goodwill and intangible assets.
Posted Date: 1/25/2013 2:11:38 AM | Location : United States







Related Discussions:- Accounting principles - intangible assets, Assignment Help, Ask Question on Accounting principles - intangible assets, Get Answer, Expert's Help, Accounting principles - intangible assets Discussions

Write discussion on Accounting principles - intangible assets
Your posts are moderated
Related Questions
Advantages and disadvantages

Question 1: Auditing standards regulate the audit profession. a) Explain the importance and role of audit standards. b) Lists four of the standards issued by the INTOSAI

Advantages and disadvantages

Beneficial Ownership and Existence Existence Existence of buildings and Land is not hard to display. You may even be sitting in such building.  Conversely, the audito

Capital allowances vs. Depreciation Whether the client can prove such they will keep the existing levels of investment in original terms, then there may be justification to ac

Audit Procedures - Intangible Assets The auditor's process as far as goodwill is relating would involve as: a) Vouching for details as per the buy agreement of the values

Adjusting Events - Audit Process Adjusting events are those such give evidence of conditions such existed at the balance sheet date as the settlement of a court case than the

Research and development Panorama Ltd manufactures and distributes a wide range of general pharmaceutical products. Selected audited data for the reporting period ended 31 Dec

Advocates - Specialized audit Situation The statutory provisions regulating the handling of client's monies are covered in the advocate's act. Reason of the rules:

An internal audit is one which is conduct by the internal auditors of the company. It is not mandatory for the company and the company just conducts it to keep a check on the opera