Reference no: EM132518213

Question 1: At our recent board meeting several directors raised concerns about an intangible asset relating to the brand name 'Ezi Kleen' which has been successfully developed by the business over the past years. The directors want to recognize $900,000 for this asset as at 30 June 2020, being a 'directors' valuation'. We also spent about $100,000 for branding research. Could you please provide advice on the correct presentation of such intangible assets?

Question 2: At our recent board meeting, several directors raised concerns about spending too many man hours on accounting for future tax consequences. Their biggest argument was that as long as the tax man is happy and we are not cheating on our tax returns, then we are simply wasting money in accounting for temporary differences and deferred tax assets (DTAs) and deferred tax liabilities (DTLs) . Do you have any problems if we do not account for the DTAs and DTLs and just account for the current tax liability?