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 process, In previous section you learnt about the accounting inv...

In previous section you learnt about the accounting involves four stages: (i)  recording the transactions, (ii)  classifying-the transactions, (iii) summarising  the trans

Objectives of final accounts, Objectives of final accounts describe ...

Objectives of final accounts describe Final Account; know their objectives and preparation of Trading and Loss and Profit Account; find out the difference among Trad

Items in the profit and loss account, The subsequent items are debited in t...

The subsequent items are debited in the profit and loss account as: 1. Administrative expenses comprising office salaries, office lighting, office rent, printing, director's fee

Determine the accounts payable days, SQB Corporation reports sales of $10,0...

SQB Corporation reports sales of $10,000,000 for Year 2, with a gross profit margin of 40%.  20% of SQB's sales are on credit.       Year 1 Year 2

Intangible Assets, In view of company being faced with huge write-downs to ...

In view of company being faced with huge write-downs to the carrying values of their intangible assets, what are the current AASB reporting requirements for intagibles and does the

Financial executives institute, The Financial Executives Institute is an or...

The Financial Executives Institute is an organization established in 1931 whose members are mainly financial policy-making executives. Several of its members are chief financial of

Prepaid expenses, Prepaid Expenses In many conditions, like a custom, s...

Prepaid Expenses In many conditions, like a custom, some of the item of expenses is generally paid in advance such as rent, taxes, insurance and subscriptions. The rationale of

#titISA 8le.., #question STATEMENT OF COMPERIHENSIVE INCOME

#question STATEMENT OF COMPERIHENSIVE INCOME

Financial Reporting, This is a 2,000 words assignment. There is list of 5 q...

This is a 2,000 words assignment. There is list of 5 questions. I would love to get it done in 3 days. Could you please let me know whether you are capable of getting it done. Than

Explain how the use of environmental accounting can help, QUESTION An i...

QUESTION An important function of Environmental Accounting is to bring environmental costs to the attention of corporate stakeholders who may be motivated to identify ways of r

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