Determine the carrying amount of intangible assets, Accounting Standards

Assignment Help:

 A company incurred the following expenditure during the year: 
                                                                                                  $'000  $'000
 Licence to operate in business sector for 10 years from
 January 2010                                                                                        200
 
 Costs incurred in planning a website for a new product                         20
 The website will be set up in 2011
 
 Purchase of 300 personal computers on 1 July 2010 
 (three-year useful life).  Total cost:
 300 PCs (excluding operating system)                                       240
 Windows operating system for each unit (licence for 300 PCs)  30
 Microsoft Office software for each unit (licence for 300 PCs)      24
                                                                                                    294
 
Induction training for new staff                                                    30

The company owns the rights to a popular range of books, which it purchased from another entity for $90,000 a few years ago. The rights were not amortised as they have been attributed an indefinite useful life. The books are still very popular so no impairment losses have been necessary and it was valued by an independent valuer at $140,000 at the year- ended 31 December 2010.

The company's policy is to use the revaluation model for its intangible assets where a market valuation is available and permitted.

Determine the carrying amount of intangible assets at the end of the year 31 December 2010 (insofar as the information permits).


Related Discussions:- Determine the carrying amount of intangible assets

Accounting information, explain how accounting information may be used when...

explain how accounting information may be used when an owner wants to justify a price in one of their lines of house paint

Define economic and financial decisions, Q. Define Economic and financial d...

Q. Define Economic and financial decisions? You most likely will find that of all the business knowledge you have acquired or will learn the study of accounting will be the mos

American municipal bond assurance corporation, The first municipal bond ins...

The first municipal bond insurance company was created in 1971 as a supplementary of MGIC Investment Corp. of Milwaukee; now usually called as Ambac Financial Group, Inc. The Ameri

Balance sheet, Balance sheet is related along with reporting the financial ...

Balance sheet is related along with reporting the financial position of an entity on a specific point in time. Such position is conveyed in terms of listing all the things of value

Lease, why Accountant prefer commercial substance than legal form?

why Accountant prefer commercial substance than legal form?

What type of an asset is goodwill, What kinds of risks does a firm like Ama...

What kinds of risks does a firm like Amazon.com face with respect to safeguarding its assets? What types of controls do you think it already has in place to minimize these risks? G

Accounting Theory And Practice, Explain the procedure followed in governmen...

Explain the procedure followed in government system of accounting in india

Attempts towards standardisation, Standardization in UK and USA: although ...

Standardization in UK and USA: although the Institute of Chartered Accountants in England and Wales began creating recommendations as 1942, real progress started along with the es

The Banking, 1. What is a bank? 2. What bank overdraft?

1. What is a bank? 2. What bank overdraft?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd