Comparing the Disclosure for Intangible Assets of Cls and Acrux

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Research report
Topic: Comparing the disclosure for intangible assets of CLS and Acrux Details: Analyze the disclosure of intangible assets about two selected company CSL and Acrux.

Executive Summary
The Australian Securities & Investments Commission's (ASIC) Financial Reporting Surveillance Program was purpose to improve the quality of financial reporting by reviewing the annual financial reports of two listed companies whether or not compliance with the Corporations Act and Australian Accounting Standards. Martha Miller who is the Head of the Financial Reporting Surveillance Program just intended to analyze intangible assets and related disclosures. Thus, comparing the disclosures for the intangible assets of CSL and Acrux, there are four main parts to analyze the disclosure of intangible asset. Firstly, using the annual report of two companies stated the research and development expense and the notes of intangible assets. Then, critically evaluate whether the disclosures made by each company are consistent with paragraphs 118 – 123 and paragraphs 126 – 128 of AASB 138. According to the evaluation, the companies were focus on following paragraphs 118, 119, 120. Moreover, compared with CSL and Acrux, the explanation of research and development expense, accounting policy used in intangible assets, the analysis of accumulated amortization and impairment were the main difference in the disclosure. Finally, provide the recommendation to advice how the company can improve the qualities of their disclosure about intangible assets such as providing sufficient information about the useful life was indefinite or finite and separating classes of intangible assets. Conclusion:The two companies prepared their annual reports are also in high quality and followed AASB 138 requirements, however, it still exist some problems in each company that not fully satisfied the requirements. Companies should pay attention to these problems to improve their quality in annual report next year.

Content
Introduction………………………………………………4

State the disclosure of CSL limited and Acrux limited……………………………………………………4

Evaluate the disclosures complied with AASB 138
Intangible assets…………………………………..............6

Compared two companies CSL and Acrux……………….8

Recommendations………………………………………….9

Reference…………………………………………………...10

Introduction
In recent years, intangible assets are playing a significant role for business to show it on their annual reports. Intangible assets also can help and make a maximization profit for investors and company. It is “An identifiable non-monetary asset without physical substance” (AASB138). Intangible elements will become the important source of wealth and it also necessarily represented the secret of business because the key resources and factors can make effectively in the market. This report will through comparing intangible assets and related disclosure in annual report about two listed company CSL limited and Acrux limited. Through comparison to find whether the two listed companies were applied with Australia Accounting standards AASB138 Paragraphs 128-123 and paragraphs 126-128, the Australian Securities & Investments Commission's (ASIC) Financial Reporting Surveillance Program can use the outcome to improve the quality of financial reporting.

State the disclosure of CSL limited and Acrux limited
CSL is a global specialty biopharmaceutical company through a series researches, developments, manufactures and markets products to deal with and deter some serious human medical problems. Their products area is involve in various medical and want to further invest in R&D area and invent more useful medicines and products. According to their annual report in 2011, the statement of comprehensive income showed external research and development expenses and the statement of financial position showed intangible assets and its notes number. In the notes intangible assets of CSL can be...
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