Presented below is a list of items that could be included in the intangible assets section of the balance sheet. Instructions (a) Indicate which items on the list above would generally be reported as intangible assets in the balance sheet. 13. Goodwill acquired in the purchase of a business. 15. Cost of purchasing a patent from an inventor 16. Legal costs incurred in securing a patent. 17. Unrecovered costs of a successful legal suit to protect the patent. 23. Cost of purchasing a trademark
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that are needful to an organization’s ability to produce goods and services‚ namely‚ Financial assets‚ Physical assets and Intangible assets. Intangible assets include intellectual capital (product patents‚ product designs‚ and process technology)‚ goodwill‚ and human capital or human resource1. There are many terms for the human resource such as "human capital"‚ "manpower"‚ "labor"‚ "talent"‚ or simply "people". None of the organization can survive without having the right human resource in long run
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Intangible Assets: An intangible asset‚ despite not having a physical form to it‚ has great value to a company and is to be disclosed in the financial reports. Some companies only disclose the brand and goodwill as their only intangible assets‚ while others include more such as software and the company trademarks (Loftus et al. 2012). The Accounting Standard AASB 138 advises businesses on the accounting treatment of these intangible assets‚ but only if the specific criteria have been met for an
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lifespan can be found on the cash flow statement. Amortization gets expended in accrual accounting. The transactions made are followed with the accrual basis of accounting. According to Axiom Financial (2014)‚ amortization is considered to be “goodwill”. Amortization relates to items like notes receivables and asset balances. Depreciation is like amortization. It is one of the essences in accrual accounting. It is the writing off the diminishing value of particular items during
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Difficulties relating to the recognition and measurement of intangibles generally and of brands in particular Introduction: With the development of market economies‚ knowledge economy and information industry‚ intangible assets as a necessary part of current business become one of the most important factors leading businesses to a success. In the previous years‚ people paid more attentions to tangible assets i.e. PPE‚ inventories‚ and other tangible assets that can produce future economic benefits
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Mini Case 3: 1. Q: A Ltd. owns 45 percent of B Co. Typically‚ only about 70 percent of the outstanding shares are voted at the annual meetings of B Company. Because of this‚ A Ltd. always casts a majority of the votes on every ballot when it votes the shares it holds. Since A Ltd. owns 45% of B Co. but maintains the majority of the voting power due to only about 70% of the total amount of available votes casted. This gives A Ltd. the control to decide on the operating and financial policies of
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Return‚ the Buyer a/c is credited and the Sales a/c is debited. 3 GOLDEN RULES OF ACCOUNTANCY (1) Debit What comes in & credit what goes out [Real Account] Real Accounts - All tangible assets like cash‚ car‚ furniture and intangible assets like goodwill‚ patents (2) Debit the Receiver & Credit the giver [Personal Account] Personal Accounts - Jose‚ cyndie or any other person or any company’s account in business (3) Debit all the Expenses and losses & Credit all the Incomes and gains. [Nominal
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“Human Resource Accounting – an intangible asset : Comparative & Correlation analysis of disclosures in Annual Reports” 1. Introduction: In present scenario‚ despite the global change‚ Human Resource Accounting is major issue for research & analysis in management. Human resource has always been taken as a ‘soft & light issue’ whose contribution generally can not be measured in monetary terms. There is no role of recording investments‚ benefits rendered by employees‚ valuation & accounting of human
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Financial reporting developments A comprehensive guide Impairment or Financial reporting disposal of longdevelopments lived assets Revised October 2011 To our clients and other friends ASC 360-10‚ Impairment and Disposal of Long-Lived Assets (ASC 360)‚ provides accounting guidance for impairments of assets that are held for use‚ held for sale and to be disposed of by other means. In one of its more challenging aspects‚ ASC 360-10 requires the use of fair value measurements for impairment
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Accounting 430 - Quiz 8 1) Assuming a 25 percent tax rate‚ compute the after-tax cost of $23‚000 worth of advertising costs. (part c) a) $23‚000 b) $20‚125 c) $17‚250 Because the advertising cost is deductible‚ its after-tax cost is $17‚250 ($23‚000 - [$23‚000 × 25%]). d) $27‚500 2) In 2013‚ Firm A paid $50‚000 cash to purchase a tangible business asset. In 2013 and 2014‚ it deducted $3‚140 and $7‚200 depreciation with respect to the asset. Firm A’s marginal tax rate in both years was 35
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