Determine the carrying amount of intangible assets, Accounting Standards

 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).

Posted Date: 3/15/2013 2:55:11 AM | Location : United States







Related Discussions:- Determine the carrying amount of intangible assets, Assignment Help, Ask Question on Determine the carrying amount of intangible assets, Get Answer, Expert's Help, Determine the carrying amount of intangible assets Discussions

Write discussion on Determine the carrying amount of intangible assets
Your posts are moderated
Related Questions
We have a demonstration instrument that was paid for years ago. How do we get it back on our books as an asset?

The main function of accounting is to accumulate accounting data so as to calculate the profit and loss made through the business firm throughout and also to KNOW the financial pos

#questionThe book of Deven Verma could not be tallied. The accountant transferred the difference of Rs. 1,270 in the suspense account on the debit side. The following mistakes were

Loss and Profit Account is prepared so as to discern whether the firm has made net profit or suffered net loss for a specified accounting period. Such account deals along with indi

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

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

Imputed Interest - If no interest or an unrealistic amount of interest is charged in a salve involving certain kinds of deferred payments, then transaction would be treated as if r

Explain the procedure followed in government system of accounting in india

Accounting Concepts: The dual aspect principle has specific relevance to balance sheet. According to this principal, every transaction is concerned as one that has dual ef

1)   List every item debited or credited in the Profit and Loss account. 2)   Illustrates the difference among Trading Account and Profit and Loss Account. 3)   Illustrates t