Evaluation Of A Financial Statement Audit

Evaluation Of A Financial Statement Audit
Brian Sands
Professor Mandanici
ACC 962
May 10, 2016
SAS 99 Memo
AU Section 316
Consideration of Fraud in a Financial Statement Audit
Source: SAS No. 99 (Supersedes SAS No. 82)
The following is a brief outline of the aforementioned document:
Description and characteristics of fraud. o Misstatements arising from fraudulent financial reporting. o Misstatements arising from misappropriation of
assets.
The importance of exercising professional skepticism. o Professional skepticism is an attitude that includes a questioning mind and a critical
assessment of audit evidence.
Discussion among engagement personnel regarding the risks of material misstatement due to fraud. o An exchange of ideas or "brainstorming" among
the audit team ... Show more content on Helpwriting.net ...
Assessing the identified risks after taking into account an evaluation of the entity 's programs and controls. o Requires the auditor to obtain an
understanding of each of the five components of internal control sufficient to plan the audit.
Responding to the results of the assessment. o A response that has an overall effect on how the audit is conducted, that is, a response involving more
general considerations apart from the specific procedures otherwise planned. o A response to identified risks that involve the nature, timing, and extent
of the auditing procedures to be performed. o A response involving the performance of certain procedures to further address the risk of material
misstatement due to fraud involving management override of controls.
Evaluating audit evidence. o Conditions may be identified during fieldwork that change or support a judgment regarding the assessment of the risks.
п‚§Discrepancies in the accounting records.
п‚§Conflicting or missing audit evidence.
п‚§Problematic or unusual relationships between the auditor and management.
Communicating about fraud to management, those charged with governance, and others. o Whenever the auditor has determined that there is evidence
that fraud may exist, that matter should be brought to the attention of an appropriate level of management.

Documenting the
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The Importance of Intangible Assets
The Importance of Intangible Assets
Evaluation of Transitional Issues from a Canadian Standpoint
Contents
TopicPage
1.Executive Summary3
2.Report
I.The Trade–off Between Relevance and Reliability4
II."Nothings" are Something to Consider5
III.Current Practice in Canada5
IV.The Challenge of Valuation6
V.Analysis of Potential Improvements to Canadian Standards 7
В•Issue One – Valuation
Valuation and Business Combinations
Solution to Valuation Issues
В•Issue Two – Improved Transparency
Recommendation for Improved TransparencyVI.Comparison of Canada, USA, and International Standards 9 Goodwill ... Show
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In addition these assets provide an insight into an entity's future prospects. However, current Canadian and US accounting practice limits recognition of
self developed intangibles in order to enhance reliability in financial reporting. Fundamentally, the nature of these limitations prevents management bias
and inhibits unjustifiable flexibility of statement presentation.
Current Practice in Canada
In a more recent (June 2007) Re–Exposure Draft, the AcSB states its opinion toward the above–mentioned rules–based conditions implemented in the
U.S.: "U.S. standards generally are interpreted (by the AcSB) as significantly limiting the recognition of any internally generated intangible
assetsВ….and contains an outright prohibition on the recognition of start–up and pre–operating costs"(AcSB, 2007). By employing information
perspective in accounting for internally generated assets creates recognition lag and reduces reliability of financial data, due to the fact that unrealized
increases in value of an enterprise through their use and development are not recognized on Balance Sheet. Users, in turn when evaluating qualitative

characteristics of financial data recognize the recognition lag, and inability of projecting future prospects creates a great demand for more reliability.
In Canada, however, AcSB's practice regarding intangible assets and recognition of internally developed intangible assets has been identified as a

Accounting Treatment of Intangible Assets
Accounting Treatment of Intangible Asset
Draft
Pace University
ACC692 Summer I By Yigal Rechtman July 30, 2001
Introduction
What is the problem? Accounting for intangibles has gained prominence in the past few decades due to changes in the way the business world operates.
The technological revolution and in particular, the information age, has brought intangible resources to the fore of the business environment.
Businesses ( even the most traditional production manufacturers ( are moving towards an information age where a competitive edge is increasingly
linked to resources other than the fixed and liquid assets as understood by Generally Accepted Accounting Principles (GAAP). Some research has
shown that accounting for ... Show more content on Helpwriting.net ...
Unless otherwise stated, financial statements herein are presented with conformity of United States( Generally Accepted Accounting Principle
(GAAP). Within the latter confines, estimates such as amortization and useful life of an Intangible Asset (IA), although a valid issue, will be
generally out of the scope of this paper. The reason for the limitation is that for cash flow purposes, as well as for balance sheet analysis, such estimates
represent regulatory requirements and provide little by way of capturing the essence of the issues surrounding IA. Therefore, the ultimate purpose of
this paper is to venture out of the confined safety of U.S. GAAP and investigate what other isms are possible for presentation of a Statement of
Financial Position which incorporates intangible assets. The method of this paper consists of discussing the three criteria which are used to assess the
alternatives to accounting IA: valuation, recognition and presentation. Each of these criteria is measured on a scale from 0 to 100 (alternatively, from
0.0 to 1.0) to show the extent of the departure of the alternative from the currently accepted method, usually the Generally Accepted Accounting
Principles. Because Goodwill is already an established IA under current accounting rules, it will be discussed first (for each criteria) to show the extent
of the existing treatment. Although other IA such as Human Capital or

Harvey Norman Intangible Assets
TABLE OF CONTENTS
Abstract2
Introduction2
Business description and main activities3
Harvey Norman Resources5 Tangible Resources5 Profit from continuing and discontinued operations6 Profit from property6 Sales at franchises7 Sales
at company–owned stores8 Intangible Resources8 Computer software and licence property8 Goodwill9
Harvey Norman Invisible Balance Sheet10 Internal Capital11 External Capital13 Individual Competence14
Recommendations15
Conclusion17
Appendix19 Appendix 119
References20
Abstract
Harvey Norman is one of the biggest consumer electronic retailer in Australia (D Richard, 2010), well–known for its recognisable brand name and
local community involvement, Harvey ... Show more content on Helpwriting.net ...
Within its franchising system, the company provides retailing strategy and marketing techniques in turn for receiving the franchisees fees that are
based on sales. Harvey Norman is said to be 'part retailer, part property–trust' as the company property holdings account for nearly 50 percent of its
total assets (Money manager, 2008). These assets also produce main source of income for the company including regular rental income from the
franchisees, and also acting as an investment income where it can successfully develop properties from vacant land to retail complexes. The major
benefits of this integrated model enable Harvey Norman to lower the cost of debt financing by securitizing a portion of income–producing property
portfolio. This would free up capital and helps to boost returns.
In terms of the history development of Harvey Norman, appendix 1 illustrates the important evolvements. It has been one of the dominant leaders of
Australian retail industry since 1970s. Based on the business performance of last few decades, Harvey Norman has shown a rapid growth compare to
its competitors.

Harvey Norman Resources
Tangible Resources
According to the company's profile, Harvey Norman Holdings Ltd is one of leading retail chains in Australia, which has franchisors, company–owned
stores and properties across the world (Australia, New Zealand,

Intangible Assets
Research Based Case Study and Report (ACCG224) Cervantes Corporation Ltd. South Perth, WA Clean Seas Tuna Limited South Australia BY:
Jiamei Gu Student ID: 42184169 October 2, 2012 Table of Contents EXECUTIVE SUMMARY3 INTRODUCTION4 EVALUATION OF THE
DISCLOSURES OF SELECTED COMPANIES5 Disclosures on Intangible Assets5 Compliance with AASB 138, Paragraphs 118 to 123 and 126 to
1286 Differences in Disclosures Between the Two Companies7 RECOMMENDATIONS9 LIST OF REFERENCES10 APPENDICES11 Appendix A
–
Cervantes Corporation Ltd. – Consolidated Statement of Financial Position11 Appendix B– Cervantes Corporation Ltd. – Note 1 (i)11 Appendix C–
Cervantes Corporation Ltd. – Note 1312... Show more content on Helpwriting.net ...
However, there is difficulty in assigning values to intangible assets because they have no physical form. Some companies even neglect recognition in
their financial statements. In an attempt to improve the quality and increase the usefulness of financial reports, this research–based case study aims to
review the disclosure requirements for intangible assets. It will be based on the comparison of the disclosures of Australian Securities Exchange
listed companies, namely, Cervantes Corporation Ltd. and Clean Seas Tuna Limited, both participating in the aquaculture industry. It involves an
evaluation of the companies' Notes to the Financial Statements as of June 30, 2012, identifying all the disclosures presented to determine consistency
with the requirements under AASB 138, paragraphs 118 to 123 and paragraphs 126 to 128. EVALUATION OF THE DISCLOSURES OF
SELECTED COMPANIES Disclosures on Intangible Assets The Consolidated Statement of Financial Position as of June 30, 2012 of Cervantes
Corporation Ltd. reported intangible assets of $188,670. Accordingly, Notes to the Financial Statements (Notes 1 (i) and 13) disclosed the composition,
nature, valuation, useful life and provision for impairment of these assets. These are composed of licenses and leases on

An Report On The Disclosure Of Intangible Assets And...
Executive summary Recently, importance of intangible assets for a reporting entity has been increasing continuously. This report will discuss
intangible assets with indefinite or infinite useful life and research and development expenditure in SEEK Ltd annual report 2014. This report will
state the background of SEEK Ltd and the increasing importance of intangible assets. Furthermore, the disclosure of intangible assets and research
and development expenditure will be revealed. Moreover, this report will critically evaluate whether the disclosures SEEK has made are in
accordance with requirements of intangible assets' segment in AASB 138. Consequently, this report will summary the findings and states the basic
recommendation. 1. Introduction 1.1 Background SEEK Ltd is a diverse group of companies with over 17 years of operation experience having a
common purpose to assist those who cherish their dreams and help them looking for better working circumstance and experience as well as support
organisations succeed.Furthermore, SEEK learning service offers jobseekers appropriate and trusted advices of jobs related to career and education.
SEEK's employment marketplaces are concentrated on not only contributing the matching within jobseekers and employment opportunities but also
helping hirers find needed workers. There are over 3 million job opportunities available in the employment marketplaces. Moreover, SEEK have
already helped over 55,000 students receive appropriate

Intangible Asset Accounting and Accounting Policy...
INTANGIBLE ASSET ACCOUNTING AND ACCOUNTING POLICY SELECTION IN THE FOOTBALL INDUSTRY
by
NICHOLAS ROWBOTTOM
A thesis submitted to the Faculty of Commerce and Social Science of The University of Birmingham for the degree of DOCTOR OF PHILOSOPHY
Department of Accounting and Finance School of Business Faculty of Commerce and Social Science The University of Birmingham July 1998
University of Birmingham Research Archive e–theses repository This unpublished thesis/dissertation is copyright of the author and/or third parties.
The intellectual property rights of the author or third parties in respect of this work are as defined by The Copyright Designs and Patents Act 1988 or
as modified by any successor legislation. Any use made ... Show more content on Helpwriting.net ...
icies in the Football Industry
5.1 Accounting for Player Registrations and Transfer Fees 5.2 Accounting for Signing–on Fees 5.3 Capital Grants 5.4 Depreciation of Stadia
106
6
Theoretical Framework for Studying the Selection of Accounting Policy Choice
6.1 Theories of Accounting Policy Choice 6.2 Explanatory Variables 6.3 Statement of Hypothesis
138
7

Methods of Data Collection and Analysis
7.1 Sampling 7.2 Bank Questionnaire 7.3 Football Club Questionnaire 7.4 Variable Construction 7.5 Model Specification 7.6 Parameter Estimation 7.7
Sensitivity Analysis
168
8
Test Results and Interpretation
8.1 Underwriter Pressure Hypothesis 8.2 Debt Contracting Cost Hypothesis 8.3 Youth Development Hypothesis 8.4 Ownership Structure Hypothesis
8.5 Normative Influence Hypothesis 8.6 Political Cost Hypothesis
222
9
The Feasibility of Intangible Asset Accounting in the Football Industry 253
9.1 Transfer Fee Accounting 9.2 The Measurement of Player Registrations 9.3 Valuation Model for Player Registrations 9.4 Conclusions
Conclusions Appendix 1
A1.1 Bank Questionnaire Cover Letter A1.2 Bank Questionnaire
292 300
Appendix 2
A2.1 Club Questionnaire Cover Letter A2.2 Football Club Questionnaire
305
Appendix 3 Appendix 4 Appendix 5 Appendix 6 Appendix 7
A7.1 Multicollinearity A7.2 Model Assumptions
312 321 322 323 328
Bibliography

332
INTRODUCTION
One of the main aims of this thesis is to evaluate the feasibility of

Aasb 138 Intangible Assets
Regulation is a topic that has been debated for many years and will continue to be debated for years to come. In the business and finance sector, there
are many regulators including but not limited to the Australian Securities and Investment Commission (ASIC), Financial Reporting Council (FRC),
Australian Prudential Regulation Authority (APRA) and the Australian Accounting Standards Board (AASB). While these are only a few regulatory
bodies in the industry, they all have their own set of regulations to enforce. ASIC, for example, regulate the Corporations Act 2001 along with the
Australian Accounting Standards. While ASIC ensure that organisations adhere to the regulations laid out before them, the AASB create and develop
those... Show more content on Helpwriting.net ...
By incorporating the use of stakeholder comments and public forums, the AASB has taken steps to facilitate the need to consider the expectations of
the public. Looking closer at AASB 138 Intangible Assets, this standard was formed using the standard setting process outlined previously.
AASB 138 defines intangible assets as "identifiable non–monetary assets without physical substance". Such assets include but are not limited to
goodwill, trademarks, patents and research and development. AASB 138 Intangible Assets has been implemented to prescribe the accounting treatment
for intangible assets that have not been specifically dealt with in any other standard. Therefore, this standard only applies to intangible assets that have
not been previously dealt with. Furthermore, it can be established that this standard is an example of normative accounting theories because the
standard prescribes what should be done, rather than predicts what people may do. According to AASB 138 Intangible Assets, in order for an asset to
be recognised in the financial statements it must meet specific criteria. The required criterion states that the asset must be identifiable, the entity has
control of the asset, future economic benefits are probable and the cost of the asset can be measured reliably.
According to AASB 138 Intangible Assets, an item is identifiable if it is

Goodwill Is An Intangible Asset
Goodwill is an asset that is an intangible asset. Goodwill represents the future economic benefits that arise from acquiring assets during a business
amalgamation. A goodwill reflects the difference between the purchase price and the fair value of acquiring a company's assets or a business merger.
According to the generally accepted Accounting Principle goodwill is not amortized. Therefore, on the balance sheet there would not be an accumulated
goodwill amortization. Impairment on a goodwill is tested annually or whenever issues arise. Note, if an impairment has occur the amount will be
written down as an increase to the goodwill valuation account.
Goodwill is an intangible asset that is recognizable by it nonmonetary asset. Goodwill has no physical material or matter. Intangible asset are said to be
either divisible or comes from contractual or other form of legal rights, which has the authority to gain future economic benefits.
Although the procedures in this process can be difficult and is subjected to a great degree of interpretation. Even though the calculation that is required
can be subjected to a guess. The new proposed treatment has been tackling with the problem of ambiguity and subjectivity aiming at the financial report
preparers and auditors who will have some major implication regarding corporate governance and auditing.
Goodwill, in the law and accounting, an intangible asset established a value over and above the valuation of the tangible assets of the

The Value Of An Intangible Asset
In today's corporate world, we get to see that no longer a company's worth can be measured by simply looking at its physical resources only. These
days, intellectual capital plays a huge role and we need to account for that, as intangibles have become one of the crucial drivers for the economic
performances of most companies. However measuring the value of an intangible asset with accuracy and treating it correctly for the preparation of
financial statements has been found to be quite difficult. In fact, one of the most contested areas of accounting lies with the treatment of internally
generated intangibles assets – Research and Development.
In simple words, the basic difference between tangibles and intangibles is that tangibles relates to those physical assets which can be touched such as
machineries whereas intangibles refer to assets that do not have a physical presence. However in the world of accounting standards, the definition of
intangibles becomes quite precise as IAS 381 defines an intangible asset as 'an identifiable non–monetary asset without physical substance' – where an
asset is identifiable if it is capable of being separated or divided from the entity and sold, transferred, licensed, rented or exchanged, either individually
or together with a related contract, asset or liability or arises from contractual or other legal rights, regardless of whether those rights are transferrable
or separable from the entity or from the rights and obligations. Thus

Culture: The Intangible Asset in a Company
CULTURE: THE INTANGIBLE ASSET
A company's soul is its personality, its culture, and the values by which it stands; derived from a company's core beliefs, this intangible asset determines
the effectiveness of strategies and the ability to achieve authenticity. Culture consists of group norms of behavior and the underlying shared values that
help keep those norms in place (Nelson, 2013). Defining and implementing desired norms of behavior requires wisdom, time, and some intellectual
curiosity and emotional investment to understand what motivates employees to perform consistently well, even beyond expectations (Kotter, 2012).
"Every company and team has its own identity––a soul waiting to be discovered and used to unlock human energy and unleash new economic value"
(Lapin, 2012). While one culture will not work for every company, successful companies determine the desired culture, design, implement, and nurture
it. Leaders must revisit their mission, and answer pertinent questions: Why are we in this business and why is our company here? What is the higher
purpose for which our organization has come into being? The company's existence is no accident of circumstance; it is here to do something no other
organization can do (Lapin, 2012). Every company has a culture (Moberly, 2014). In today's generation, the archaic mission statements filled with lofty
sounding declarations resonate more like a press release than a passion filled vision inspired by a higher corporate

The Fasb 's Agenda Of Accounting For Goodwill
Abstract.
This paper examines the FASB's agenda of accounting for goodwill in public and not–for–profit entities. Research shows they are looking at four
alternatives for accounting for goodwill in these entities. There is no projected completion date as of March 2015. The adoption of this proposal does
not appear to help converge U.S. GAAP and IFRS.
Introduction.
INFO
Body.
Background:
"In 2001, FASB Statement No. 142 Goodwill and Other Intangible Assets replaced APB Opinion No. 17 Intangible Assets (issued in 1970)"
(Hillenmeyer & McMillen, 2013). The new statement eliminated goodwill amortization which was previously amortized over its useful life at a
maximum of 40 years. Statement No. 142 required that goodwill be tested for ... Show more content on Helpwriting.net ...
In 2013, the Board endorsed the Private Company Council decision to give private companies an alternative to amortize goodwill and simplify the
impairment test. After much feedback, there was an indication that many public and not–for–profit (NFP) business entities share similar concerns of
cost and complexity on the annual goodwill impairment test. As a result, the Board added this project to its agenda. The objective of this project is to
reduce the cost and complexity of the subsequent accounting for goodwill for public business entities and NFP entities. This project will determine if
certain intangible assets, such as customer relationships and non–compete agreements, should be included in goodwill. Research will be done to
identify the most appropriate useful life of goodwill if it were to be amortized and on simplifying the impairment test (Hillenmeyer & McMillen, 2013).
Examples of Previous Method: Like other public companies, Coca–Cola and Macy's have the option of performing a qualitative assessment of goodwill
before completing the quantitative two–step process described in FASB Statement No. 142. Coca–Cola and Macy's both test intangible assets that have
indefinite useful lives, such as goodwill, annually for impairment or more frequently if economic events

Similarities and Differences of Igaap and Us Gaap -...
The world possesses two main accounting systems: United States Generally Accepted Accounting Principles (U.S. GAAP) and International
Generally Accepted Accounting Principles (iGAAP). As the acronym simply states, US GAAP are the guiding principles for the United States and
iGAAP are principles used by other countries internationally. Across both systems are similarities in language, procedures and reporting but some of
the differences are so major that it keeps a consistent debate on which system is more appropriate for accounting purposes. The reporting of intangible
assets is one such area where they are some similarities in using the guidelines of iGAAP or U.S. GAAP but they also have some significant
differences between... Show more content on Helpwriting.net ...
For intangible assets obtained in a business combination, both GAAPs will recognize an intangible asset as a separate entity from goodwill.
Amortization can be applied to limited life intangibles under both GAAPs, however, amortization is not applied to indefinite life intangibles and
goodwill because they are assessed for impairment annually. Accounting for impairments of assets held for disposal are handled similarly under both
GAAPs. There are five differences in U.S. GAAP and iGAAP in accounting for intangible assets and they are fairly significant differences. The first
difference is in how costs are expensed in the R&D phase. Even though both GAAPs always expense costs during this phase, iGAAP capitalizes the
cost one technological feasibility is achieved. The (IPR&D), in–process research and development phase is another difference in both GAAPs. "A
major difference between Canadian and U.S. GAAP is the treatment of IPR&D. U.S. GAAP does not allow it to be an asset, whereas Canada does, and
permits expensing it over several years." (Rosen, 2001, Vol. 74 Issue 9) Basically, the US requires acquired IPR&D to be written off and iGAAP
recognizes an intangible asset whose fair value can be measured dependably as a separate intangible asset. U.S. GAAP requires expensing of all costs
associated with internally generated intangibles whereas iGAAP will permit some capitalization. The fourth difference is seen with impairment loss
measurement. US GAAP holds

The Economic Properties Of Intangible Assets
TABLE OF CONTENTS Introduction2 1.Challenges to the definition of the digital economy4 1.1.The traditional accounting approach and its limits4
1.2.The economic properties of intangible assets and their consequences6 1.2.1The main economic features of intangibles6 1.2.2Intangible assets and
resource allocation7 2.The OECD's approach to taxing digital activities9 2.1.The redefinition of the permanent establishment concept9 2.2.The transfer
pricing aspects of intangible assets12 2.2.1The limits of the arm's length principle12 2.2.2The proposed revision of the transfer pricing regime for
intangibles13 2.2.3Risks and capital associated with intangible assets17 3.Proposals for further reform19 3.1.Redefining the PE notion with closer
attention to the nature of intangibles19 3.1.1The creation of a 'virtual PE' concept20 3.1.2Placing the 'force of attraction principle' at the centre of the
PE definition21 3.2.The taxation of MNEs on the basis of the 'enterprise doctrine'22 Conclusion26 Bibliography28 Introduction The pace at which
hardware, software and networks are developing allows considerable growth and value creation. The digitalisation of existing assets and the creation
of new kinds of intangible assets are accompanied by an unprecedented diffusion of knowledge and increasing interconnectedness. The rapid
technological progress which characterizes the digital economy has also led to emerging trends and new ways of 'doing

A Report on a Case Study on Measuring Intangible Assets an...
A REPORT ON
Case Study on Measuring Intangible Assets – Indian Experience
– 1 –
BEYOND BALANCE SHEETS...
Measuring Intangible assets– an Indian case study
"Just as you can 't measure what you can 't describe, you can 't manage what you can 't measure..."
While many companies have strived to differentiate their annual reports and make them informative, attractive and easy to read, most still take a
rear–view–mirror approach, focusing almost exclusively on history and analyses of past performance. But in today's world, as we have advanced into
the Information Age, more companies will find that those assets most easily measured are not necessarily most valuable; increasingly they will be
forced to measure intangible assets in a ... Show more content on Helpwriting.net ...
Leading companies in India are actively seeking ways of leveraging their "human capital" to develop a strategic advantage. They are moving from a
departmental focus on human resources to a far more strategic and expansive focus on human capital management. Roles and responsibilities are in
ever–changing as companies explore new ways of building and leveraging talent.
But Human Capital Assessment/Management is not limited to the enterprise itself. This new perspective also draws on the networks of talent that lie
beyond immediate corporate boundaries. It is a key element of the ongoing drive toward "collaborative commerce" or "enterprise relationship
management." – 4 –
The payoff by using this method promises to be quite powerful. Watson Wyatt, a management consulting firm that has developed a Human Capital
Index based on 30 key indices of effective human capital management, has observed that a significant improvement among the 400 publicly traded
companies it studied was associated with a 30 percent increase in market value. Watson Wyatt monitored five key dimensions of effective HCM:
recruiting excellence; clear rewards and accountability; a collegial and flexible workplace; communications integrity; and prudent use of resources.
Companies that demonstrated the highest ratings on the index generated returns of 103 percent over five years.
This proves that Human accountability is

The Impact Of Traditional Performance Measurement On The...
The world is changing, so is the business world. For companies, it is inevitable to confront with the transforming economics. There have been
increasing companies find that the traditional performance measurement approaches seems to be obsolete to reflect their performance, missions and
strategy objectives all rounded. For adapting to the new market and better understanding the management process, improved performance measurement
tool has arisen to keep pace with the changing economic world. (Dumitrescu and Fuciu, 2009) – The Balanced Scorecard (BSC), which is described as
one of the most innovative business frameworks in the contemporary history of management accounting. (Busco and Quattrone, 2015) The essay will
firstly illustrate the origins of and the rise to prominence of the BSC, then demonstrate the approach to performance measurement and the advantages it
offers, finally explain the limitations of the BSC.
The first thing to explain is the origins of the BSC. The system is generally known invented by Robert Kaplan and David Norton in 1992. However, in
1930s management pioneers and practitioners, including accountants in France have contributed substantially in building a similar system. (Niven,
2014) In early 1990, Nolan Norton Institute, the research branch of KPMG, organised a programme 'Measuring performance in the organisation of the
future'. The programme is led by David Norton, who is the Chief Executive Officer in Nolan Norton and Robert Kaplan, a visionary

Intellectual Capital And An Intangible Asset
To understand why a company will choose to disclose an information such as this, we must understand what intellectual capital information is and then
focus on why companies feel it necessary to divulge information such as these. According to Marr and Schiuma (2001), "Intellectual capital is the
collection of knowledge assets that are accredited to a company and most importantly contributes to the enhanced competitive position of the company
by increasing the worth to the company's stakeholders". The idea that is intellectual capital started with the need to understand how other factors added
value or removed value from the organization. Intellectual capital focuses on intangible assets and whether or not those assets increased a... Show more
content on Helpwriting.net ...
Knowledge management focuses on the process undertaken within an organization structures and intellectual capital on the other hand focuses on a
company's entire operation (cima) In the past, integral reporting, involved only tangible assets and structural assets in the reporting of financial
statements, and due to this there is no specific method to deal with how intangible assets can be reported. Most organizations decide what value
they can give to assets such as this. There are three known classification of intellectual capital. The first being human capital. This in itself is quite a
difficult class of capital has a true value cannot be given to this. Human capital is explained as the experiences and skills that staff members take
with them when they leave the company. This method of capital looks at things like teamwork, flexibility of the employees, creativeness etc. While a
person's creativity cannot be given a value, what this person provides the organization is a creative input that probably goes into making the company
an even better organization than it will have been if the individual did not work for them. Therefore, it is worth it for companies to try and give a
measure to this and acknowledge the influence of human capital in helping the company to have an edge. Another form of capital, is the relational
capital, this type of capital focuses on the

Amazon
Attract the Attractive
Rupavilas Patel
Kaplan University
Over the years, the world has moved through the Industrial Age to what is now called the Informational Age. The world has transfused from an age
based largely on manpower to an age based on brainpower. This brainpower is cannot be quantified but it can be categorized as a companies
intangible assets. This means that over the years the market value that was related to tangible assets has decreased and there has been an increase in
intangible assets. The percent of market value related to tangible assets in 1982 was about 62 percent, and the intangible assets were made up of about
38 percent. Then in 2000, we could see a significant transformation towards intangibles. ... Show more content on Helpwriting.net ...
So what does it mean to develop a talent mind set at all the different levels of an organization? The Mckinsey Company explains that this mindset
should begin with the senior management. They describe how these leaders must have a serious belief that building a strong management talent pool
is critical to achieving the aspirations of the company (Michaels, 2001). This conviction of talent is what will give the competitive advantage to a
company because the leaders will believe in having talent on all the levels of the company and not just the top. So how does this bring talented people
in and make the fullest possible use of their abilities? A company that is building talent in such a sophisticated way will attract talented individuals, this
will be due to the leaders who are creating, supporting, and innovating new ways to strengthen talent. This positive attitude will then become part of the
company's culture and talented professionals will become attracted to it. This mind set of having a positive attitude towards talent will also encourage
people to work to their fullest ability. Employees in this environment will be forced to use new and existing talents to work with other talented
employees and make the link with the company's business strategy and required talents. Thus by working with this mindset, employees will always be
looking to increase their abilities and utilize them towards the companies business plan. The next

Intangible Assets : Intangible Asset
What is intangible asset
Companies always have different kinds of assets, such as buildings and machines, but they also have some other assets like brand names, research and
development, copyrights or patents. These assets contain three essential characteristics: they are assets, they lack physical substance and they are
identifiable non–monetary. This kind of asset is called intangible asset. It can be recognized if it can meet these four criteria: it is separately
identifiable, controlled by the enterprise, the expected future economic benefits will flow to the entity and the cost of the assets can be measured
reliably. The fair value and validity of the intangible assets and the supply and demand in intangible assets market must be ... Show more content on
Helpwriting.net ...
In addition, the difference in the process of creating value between intangible assets and tangible assets are vague. There is interaction between
intangible and tangible assets, which make it difficult to measure accurately to what extent the benefits is made by intangible assets. For example, if a
company spends money training its staff, the object is to improve future benefits. However, the improvement is uncertain because the staff may not
learn very well or the ability they learn cannot help the company making profit. What is worse, the staff may leave in the future but the company had
spent money on training. Similarly, advertising is done for sales but the long–term effect is always uncertain.
Secondly, the useful life of an intangible asset can be finite and indefinite. The useful life of intangible assets is often associated with the future
expected cash flow of the assets. According to IAS 38, an intangible asset usually be regard as having an indefinite useful life. However, nowadays, as
the science and technology is becoming developed, the time of replace an intangible asset becoming shorter, the emergence of the substitutes pose a
threat on this intangible asset and there is no doubt that this intangible asset will depreciate rapidly. According to the annual report and financial
statements of M&S, "definite life intangibles are amortised on a straight–line basis over their estimated useful lives. Indefinite life

Accounting Paper
Introduction
In recent decades, the global economy has undergone a rapid transformation, from an economy driven by "traditional hard assets– plants, warehouses
and the like", to an economy driven by patents, software, intellectual property, and brands. These items fall into a category that has become hugely
important in the world of financial reporting, "intangible assets". Increasingly, the value of a firm is derived not from its tangible assets such as stock,
property, plant and equipment but by its knowledge capital, its employees, even by its business processes. As Baruch Lev notes in 2001:
"Pfizer's value comes from its discovery activities (drug development, patents, trademarks), and from an unusually effective sale force ... Show more
They were able to conclude that "the usefulness of reported earnings, cash flows, and book (equity) values has been deteriorating over the years". The
decline in the usefulness of accounting is a result of the difficulties in measuring an internally developed intangible asset, firstly how does one assign a
value to knowledge capital, secondly, what is the fair value of this capital if no exchange has taken place? In the interest of conservatism and
reliability, regulators require all investments in R&D to be immediately expensed. This creates a problem since the benefits of this research are
not realized until a later period, thus the concept of matching goes out the window. This increased expenditure resulting from R&D expenditure
distorts earnings on the income statement. In the event of a merger or an acquisition (M&A), in accordance with APB Opinion 17, any excess
amount paid over the book value for a firm would be listed under the catch–all term goodwill which was amortized over 40 years. As a result of these
regulation standards, the gap between the market value of technology firms and their book value became ever larger.
Efforts to Improve Financial Reporting
The dangers of this ineffective accounting for intangibles were brought into a stark light in 2001 following the collapse of energy giant Enron, which
once had been widely considered to be one of

Snow Protek Ltd Case Study
OVERALL PROBLEMS
Snow Protek Ltd is a small company and predict that there will be a great expansion in their business for five to ten years due to the successful
research project. In the current accounting period, Snow Protek Ltd has classified two type of intangible assets; Brand name and Research and
Development in their draft Statement of financial position as at 30 June 2016.
The issues arise from the acquisition of brand are the recognition and measurement of intangible asset, revaluation, amortization and additional cost
incurred by Snow Protek Ltd. The Snow Protek Ltd's Managing Director (MD) has revalued the brand based on their experience in the field and it is
inconsistent to the accounting standard. Snow Protek Ltd also have ... Show more content on Helpwriting.net ...
The Managing Director (MD) for Snow Protek Ltd has treated brand as an intangible asset quite well. But there are a couple of core issues regarding
this asset. Firstly, the valuation issue. In accordance to AASB 138:81, if there is no active market for that asset, it should be carried and recorded at
cost less any accumulated amortization and impairment losses (if any). For brand name, it should not have any revaluation as the measurement use for
this asset after initial recognition is cost model (AASB 138:74). Therefore, the amount value in use (VIU) of $1,000,000 as stated by the Managing
Director is not applicable for the revaluation.
In addition, asset amortization is also an important issue for intangible asset. For the brand name acquired by the Snow Protek Ltd, there is no useful
life recorded and it is expected to drive a positive future benefits for the entity continuously, hence there is no amortization for the brand name
according to AASB 138:107 but it should be tested for impairment loss (AASB 136).
Additional cost incurred of an intangible asset is the final issue on brand acquired by Snow Protek Ltd. The company is incompetent to increase the
value of the brand even though their sales have rising after the advertising and marketing of its brand because any expenditure that spent after the
initial recognition of an intangible asset barely will be recognized and capitalized in the carrying amount of the asset (AASB 138:20). This brand is
already capable

Intangible Asset
Assets 2 (Intangible Assets) Based on Week 4 Due Week 5 (due 25th March) NOTE: Provide references for your answers and quote where you have
written something that is word–for–word from a source Textbook Questions (15 marks): Challenging Question 29 (5 marks) Inglis Ltd has a number
of taxi licences that are shown in the financial statements at cost. Can these licences be revalued to fair value and, if so, do they also need to be
subject to periodic amortisation? Yes, if these taxi licenses are freely transferable, they can be revalued to fair value. The requirements of AASB 138
state that intangible assets may be revalued only if there is an 'active market'. Most of intangible assets will not be able to be revalued as there is no...
Show more content on Helpwriting.net ...
I need find out the what is intangible assets, the presentation of Financial Statement and the RESEARCH and EVALUATE (500 words maximum)
Gather relevant facts and evidence, sort all evidence, identify themes or issues, develop a data scaffold AND Sort all evidence and weigh it up to
start building a picture of what your Answer might be ANSWER (50 words maximum) Your opinion of the themes or issues you have identified,
justified by the evidence you have gathered and evaluated Total marks for Week 5 Tutorial work: 25 (will be scaled back to 5% if marked) Critical
Thinking Questions Assessment Criteria| | Question 1| Identify the requirements of both AASB 138 and the AASB Framework in relation to
accounting for brands| | | High distinction (4.5 – 5 marks) | Distinction (4 marks) | Credit (3 – 3.5 marks) | Pass (2.5 marks) | Unsatisfactory ( 1 –
2marks)| Mark| | The answer thoroughly and accurately portrays the accounting treatment of internally generated intangible assets, referring
appropriately to the media article, AASB 138 and the AASB Framework.| The answer provides a good amount of correct information about the
accounting treatment of internally generated intangible assets, making some reference to the media article, AASB 138 and the AASB Framework.|
The answer provides some correct information about the accounting treatment of internally

Depreciation And Amortization For Intangible Assets
In accounting the terms depreciation, depletion and amortization often involve the movement of costs from the balance sheet to the income statement
in a systematic and logical manner. Amortization Expense is an accounting term used as Account Charged for the Amortization or allocation of
Expenses for Prepayments & Intangible Assets. It solely deals with intangible assets and does not concer tangible assets like land property etc.
Intangible Assets include trade names, trademarks, franchise licenses, patent, copyrights, government licenses, goodwill and other assets that lack
physical substance but provide long–term benefits to the company. Amortization for Intangible Assets is allocated over the useful life or legal life,
whichever is ... Show more content on Helpwriting.net ...
Intangible assets include patents, copyrights, software, contracts, trademarks, trade names, franchise licenses, government licenses, goodwill, and other
items that lack physical substance but provide longterm benefits to the company.
A trademark is a word, phrase, symbol, and/or design that identifies and distinguishes the source of the goods of one party from those of others. A
service mark is a word, phrase, symbol, and/or design that identifies and distinguishes the source of a service rather than goods. The term "trademark"
is often used to refer to both trademarks and service marks.
A patent protects an invention and innovations or improvements thereon by providing the inventor with a set of exclusive rights which prevent others
from making, using, offering for sale, or selling the invention without the consent of the inventor. An idea in itself can not be patented. The idea must
be materialized into an invention, innovative product, device or process that offers new solutions to a problem in order for the registrant to be able to
seek the patent. Patents protect products in the fields of machinery, manufacturing, composition of matter (a combination of chemicals), and processes
(methods of manufacturing).
Copyrights protect works of authorship and cover: a) works of art (2 or 3 dimensional), b) photos,

Intangible Assets as a Source of Competitive Advantage
Intangible Assets as a Source of Competitive Advantage
Look No Further
Managing Intangibles seems to be a smart idea. But to bet on it, one has to create a whole new organization. The concept of intangibles is not new,
but across the globe, companies are slowly coming to grips with it. tury back physical, tangible assets created wealth; today, it's intangible assets that
are creating wealth. It's a concept that packs a lot of punch but has no form as such. It questions capitalism for its emphasis on buying assets like plant
and machinery, and hiring executives and workers to run those to make money in the process. Managing Intangibles seems to be a smart idea. But to
bet on it, one has to create a whole new organization. Management ... Show more content on Helpwriting.net ...
His paper on "Best Practices of the organization" was adjudged the 2nd best paper in the Outstanding Young Managers Competition conducted by
Baroda Management Association. He can be reached at swarup@ibsindia.org
The story of intangible assets is one of the changing faces of business globally. Consider the shifts that have happened in the modern industrial era.
The first phase of industrialization which commenced some 200 years ago and lasted roughly till World War II belonged to entrepreneurial capital.
Following the footsteps of the English East India Company, entrepreneurs built huge empires across businesses as diverse as railroad, oil, shipping,
steel and trading. This gave way to the second phase of industrialization, which came to the fore roughly in the last six decades, thanks to the amount
of managerial capital invested. The same entrepreneurs who built business empires graciously withdrew to allow professional managers to manage
their business affairs. However, while these managers have, over time, become better at managing their companies, there's been a sea change in the
nature of business, as well as its conduct, as the environment has changed dramatically. The argument is still going on as to what's kicking off the third
shift in the series? The third shift is an era of intangible assets. Something is of competitive advantage if it is not openly

Food for Thought
Case 11–7:
Food for Thought
The Audit Committee of the Board of Directors of Allfoods Corporation:
Allfoods Corp. acquired 80% of the outstanding common stock of Baked Beans Corp in a business combination on February 1, 2009. Allfoods paid
$40 million in cash and issued two million shares of Allfoods common stock to the selling shareholders of Baked Beans. Allfoods stock options will
replace all outstanding stock options granted to Baked Beans employees as required by the merger agreement. This transaction has been accounted for
in accordance with ASC 805, Business Combinations.
We have determined that consideration transferred amounts to $135 million, land and buildings should be recorded using the "in–use" valuation ... Show
more content on Helpwriting.net ...
ASC 805–30–30–11 further clarifies that a replacement award that is part of the consideration transferred in exchange for the acquiree equals the
portion of the acquiree award that is attributable to pre–combination service. Any portion of replacement award that relates to post–combination service
should be recorded as compensation cost.
Acquisition Cost
ASC 805–10–25–23 indicates that acquisition related costs shall account as expenses in the period in which the costs are incurred and received.
However, cost to issue debt or equity securities shall be recognized in accordance with other applicable GAAP. In our case, we assume that acquisition
cost is not allocated for issuing debt or equity securities.
After critical examination of the related standards, we conclude that cash, common stock, contingent consideration and replacement stock option
awards attributable to pre–combination services should be considered to determine consideration transferred. As a result, total consideration transferred
is (in million)
Cash $ 40
Common Stock (2*35)$ 70
Contingent Consideration $ 20
Pre–combination service stock option awards$ 5
$135
Highest and Best Use
ASC 820 requires that the measurement of fair value of assets acquired and liabilities assumed should be based on the

Fair Value Accounting And Intangible Assets
Fair Value Accounting and Intangible Assets
The considerable debate on the advantages and disadvantages of moving towards a full mark to market accounting system for financial institutions has
been triggered by the move of the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) to
make changes in this direction as part of an attempt to globalize accounting standards. Both fair value accounting and historical cost accounting have
their advantages and drawbacks and therefore it is hard to conclude which system is superior to the other. Within the accounting systems, the valuation
of intangible assets has been a constant source of attention by the board as well. This essay summarizes the superiority of fair value accounting in
measuring value of certain assets and liabilities including intangible assets in light of the IASB discussion paper released recently.
According to RodrГguez–PГ©rez et al (2011) the debate between the choice of Fair value and Historical cost accounting essentially takes root from the
debate of relevance and reliability. The IASB Framework defines relevancy as when information "influences the economic decisions of users by helping
them evaluate past, present or future events or confirming, or correcting, their past evaluations."Reliability as defined by the IASB framework is when
information is faithfully represented, prudent, it contains substance over form, it is neutral, and complete. Even though both

The Requirements Of Ias 38
The requirements of IAS 38 in respect of Research and Development expenditure are theoretically dubious and practically unnecessary. All such
expenditure should be treated as an expense in the Income Statement and its amount disclosed in notes to the accounts. Submitted by: Muhammad
Rohail Zahoor Contents
Introduction4
Types and Accounting Treatment of Intangible Assets5
Research5
Development5
Accounting Treatment of Research and Development Costs6
Explanation of the Accounting Treatment7
Accrual Concept7
Prudence Concept7
Matching Concept8
IAS 38 Explanation for the Accounting Treatment8
Conclusion10
References12 Introduction
Businesses spend a huge amount of money every year on the research and ... Show more content on Helpwriting.net ...
An intangible asset is an identifiable, non–monetary asset that has no physical presence. IAS 38 states that an intangible asset should be recognized
initially at cost if some criteria are met such as the following:
The intangible asset needs to be identifiable which means that the organization should be able to dispose of the asset without disposing off the whole of
the business at the same time.
The intangible asset is controlled by the organization. This means the organization has the power to obtain future economic benefits from the asset.
The intangible asset will generate probable future economic benefits for the organization which can either be in the form of costs reduction or in the
form of increasing revenue in the future for the organization.
The cost incurred on the intangible asset can be measured reliably.
If an intangible asset is not able to meet either of these criteria, it should be recognized as an expense rather than being capitalized to the statement of
profit or loss when it incurs. IAS 38 therefore specifically prohibits recognizing internally generated goodwill, customer lists, publishing titles, brands,
start–up costs, mastheads and training costs etc.

Types and Accounting Treatment of Intangible Assets
There are two types of intangible assets, those that have been purchased by organizations and secondly

Balance Sheet and Cost
E12–1 (Classification Issues–Intangibles) 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 would generally be reported as intangible assets in the balance sheet. (b) Indicate how, if at all, the items not
reportable as intangible assets would be reported in the financial statements. 1. Investment in a subsidiary company.
2. Timberland.
3. Cost of engineering activity required to advance the design of a product to the manufacturing stage.
4. Lease prepayment (6 months' rent paid in advance).
5. Cost of equipment obtained.
6. Cost of searching for applications of new research findings.
7. Costs ... Show more content on Helpwriting.net ...
The amortization expense is 75,000/12=$6,250
.
Dec 31 ,2012
Amortization expense 6,250
Patents 6,250
E12–12 (Accounting for Goodwill)
The entry in Graff's books is
Cash 100,000
Land 120,000
Buildings 200,000
Equipment 170,000
Copyrights 30,000
Liabilities 350,000
Fair value of net assets 270,000
Cash 380,000

Goodwill=380,000–270,000=$110,000
E12–16 (Accounting for R&D Costs) Margaret Avery Company from time to time embarks on a research program when a special project seems to
offer possibilities. In 2011, the company expends $325,000 on a research project, but by the end of 2011 it is impossible to determine whether any
benefit will be derived from it.Instructions
(a)What account should be charged for the $325,000, and how should it be shown in the financial statements?
The amount of $325,000

Accounting Treatment For Intangible Assets
1.0 Introduction
A few years ago West Ltd acquired all assets and liabilities of Fishy Tale. According to Fishy Tale's Financial Statement, its intangible assets include the
brand development which was valued at $800,000. However, there have been significant changes to accounting treatment for intangible assets after
Australia adopted International Financial Reporting Standards (IFRS). The aim of this report is to examine the accounting treatment for Intangible
Assets, both prior to, and after the adoption of IFRS. The differences between the old and new accounting treatment will also be presented as journal
entries. An analysis of changes and subsequent impact on accounting treatment for internally generated intangible assets is followed by a comparison
of the old and new models. Furthermore, this report will evaluate whether to capitalise or not to capitalise intangible assets for West Ltd. Finally, the
most efficient option will be recommended to the client.
2.0 Accounting treatment for Intangible Assets
Under Australian Accounting Standards Board (AASB) 138, intangibleasset is defined as 'an identifiable non–monetary asset without physical
substance' (Australian Accounting Standards Board, 2010). In recent years many companies in different countries have used several methods to record
intangible assets. However, Tudor and Dragu (2010) firmly believe that different companies from Europe use the same financial reporting method to
record intangible assets. In order to

Intangible Assets Quiz Questions
ADVANCED FINANCIAL ACCOUNTING 260
INTANGIBLE ASSETS
QUIZ QUESTIONS
1.List two assets which would not meet the 'identifiable' aspect of the definition of an intangible asset. (2 Marks)
Goodwill
Customer loyalty
2.Intangible assets acquired via a separate acquisition are always recognised. Why? (2 Marks)
The price an entity pays to acquire an intangible asset will reflect expectations about future economic benefits of the will flow to the company. This
meets the probability test to identify an asset.
3.How is an intangible asset acquired as part of a business combination measured for initial recognition? Why? (2 Marks)
It is measured at fair value as part of the total cost of the business acquisition. This is because the fair ... Show more content on Helpwriting.net ...
15.List in detail two factors which an entity would consider in determining the useful life of an intangible asset. (2 Marks) 1. Obsolescence
2. Expected actions by competitors and potential competitors
16.Identify one circumstance in which the residual value of an intangible asset with a finite useful life may be more than zero. (1 Mark)
A residual value of more than zero implies that the entity expects to dispose of the asset before the end of its economic life.
17.What is the key difference between the research phase and the development phase of an internal project? (1 Mark)
Costs associated with the project in the research phase are expensed while costs associated with the project in the development phase are capitalised.

18.XYZ Ltd has developed a new polymer for powder coating metal giving far superior weather proofing. The company has been granted a 7 year
patent protecting its process and expects to be the market leader in this field for at least 1o years. What is the useful life of the process? Why? (2 Marks)
The useful life of the patent is seven years. Therefore the patient should be amortized at a rate that will leave its residual value of zero after seven
years this is because once the patent expires is worth nothing it was to be sold. Therefore the fair value of the patent after

What Is Meant Be the Term вЂњIntangible Asset?вЂќ
What is meant be the term "intangible asset?"
Intangible assets are defined as identifiable non–monetary assets that cannot not be seen, touched or physically measured, which are created through
time and/or effort and that are identifiable as a separate asset. Corporate intellectual property (items such as patents, trademarks, copyrights, business
methodologies), goodwill and brand recognition are all common intangible assets in today's marketplace.
Intangible assets have 3 critical attributes which are:
Indetifiability. This means that they must be capable of being separated from the rest of the company and can be sold, licensed, rented or exchanged
either individually or together with a related item or the intangible asset must ... Show more content on Helpwriting.net ...
The only circumstances in which it might not be possible to measure reliably the fair value of an intangible asset acquired in a business combination are
when the intangible asset arises from legal or other contractual rights and either:
(a) is not separable; or
(b) is separable, but there is no history or evidence of exchange transactions for the same or similar assets, and otherwise estimating fair value would be
dependent on immeasurable variables.
Just like the above requirements for separately acquired intangible assets, brands that were acquired separately from any other assets should initially be
recognised at Cost.
Internally generated intangible assets
Internally generated goodwill shall not be recognised as an asset.
No intangible asset arising from research (or from the research phase of an internal project) shall be recognised. Expenditure on research (or on the
research phase of an internal project) shall be recognised as an expense when it is incurred.
An intangible asset arising from development (or from the development phase of an internal project) shall be recognised if, and only if, an entity can
demonstrate all of the following:
(a) the technical feasibility of completing the intangible asset so that it will be available for use or sale.
(b) its intention to complete the intangible asset

Miele Case Study
1. The success of Miele comes to question when the company persistence in staying in German which known as high–cost country, while its
competitors has outsourced to low–cost country. Moreover, Miele also producing its own producing machine, which result in bigger production cost
and higher product price.
Aiming on customer loyalty, superior value must be delivered along with the superior performance. Narver and Slater (1990) said there are 5
components which composed those things, which are: * Customer orientation * Competitor orientation * Inter–functional coordination *
Organizational culture * Long–term focus
In my opinion, those five components can be summarized on their resources. Customer orientation has ... Show more content on Helpwriting.net ...
b. Capabilities
Capabilities mean how the company mixes and utilizes all assets to bring the best product offered. These capabilities summarize in company 4Ps,
which are listed as below: 1. Product
Miele produces home appliances ranged from kitchen, bathroom, or other home appliances. In product strategy, premium quality product offered along
with superior product service. High durability becomes a unique point in Miele's product.
Since 1899, Miele has been proud to produce premium products that live up to our mantra, "Immer Besser" – a German phrase meaning, "Forever
Better." Now we're committed to providing a level of customer service that is as exceptional as the products themselves. With Miele ForeverCare you
get a guarantee. A guarantee that our commitment to you extends far beyond the time you buy, throughout the very long life of your machine. After
learning the best practices from other international Miele markets, and studying other industries to look for new, great ideas, we are confident in
offering you unparalleled customer service. We understand your appliance purchase is an investment, both in a product and in a company. So please
enjoy the unique benefits of dealing directly with Miele – Miele ForeverCare (Miele Price Guide, 2012)
2. Price
In pricing strategy, Miele sets high price as a symbol of high quality product and differentiation

Goodwill Is An Intangible Asset
Goodwill is an intangible asset recorded on the balance sheet when one business acquires another business and when the purchase price, or carrying
value, is greater than the fair market value. It includes the reputation, brand, geographic location, patents, employee commitments, and etc of the
acquired company. Goodwill is calculated by deducting the carrying value from the fair market value of identifiable assets and liabilities. According to
the FASB Accounting Standards Codification (ASB), which is the authoritative source for GAAP, if fair value is less than the carrying value, net
identifiable assets, then there may be a potential impairment loss. (FASB ASC 350, 2013). Net identifiable assets typically include a summation of...
Finally, the standard also indicates that the component should be combined and treated as a single reporting unit in limited circumstances.
It is crucial to ensure that the reporting units are identified properly because testing impairment at the reporting unit level, versus testing another level,
could result in dramatically different conclusions. For example, goodwill that does not appear to be impaired at the consolidated level, perhaps due to
the strong performance of some segments, may offset the deteriorating performance of others. However, goodwill rose from the acquisition upon the
poor performing segments, so testing that goodwill for impairment at the segment level might result in an entirely different conclusion.
ASC 350–20 specifically indicates that the impairment test should be performed on an annual basis. Importantly, the entity has the option of selecting
the date in which they want to perform the test, which doesn't have to be in its fiscal year end. But once the date is selected, the test should be
performed at the same day in subsequent periods to avoid bottlenecks. In addition to performing the test on an annual basis, the test should be
performed when every balanced circumstance indicates that the fair value of goodwill is less than its carrying value (FASB ASC 350, 2013). Finally,
entities often perform impairment tests and have different assets with the same

The Value Of Goodwill And Goodwill Essay
"What is goodwill?" Based on the information on the internet, goodwill is defined as "the excess of purchase price over the fair market value of a
company 's identifiable assets and liabilities." Moreover, goodwill is reported as a non–current asset on the balance sheet. But the U.S companies are
not required to amortize the record amount of goodwill since 2001. Because the value of goodwill is highly subjective, the accounting standard
requires the goodwill to have impairment test at least once per year in order to determine the amount of goodwill. However, when reporting the
goodwill in terms of valuation and impairment, there are some rules that people need to follow under the US GAAP. Moreover, there are also some
similarities and differences regarding valuation and impairment of goodwill between US GAAP(Generally Accepted Accounting Principles) and
IFRS(International Financial Reporting Standards). First of all, under US GAAP on ASC 805, the value of goodwill can be recognized initially by
measuring any excess of the fair value of the acquired business over the fair value of the net identifiable assets acquired. According to the ASC
805–30–30–1 from the FASB website, it mentions that "The acquirer shall recognize goodwill as of the acquisition date, measured as the excess of (a)
over (b): (a) The aggregate of the following: (1) The consideration transferred measured in accordance with this Section, which generally requires
acquisition–date fair value

Ias / Ifrs Vs Us Gaap
Brianna Martin May 4, 2016
Dr. Serrano–Garcia ACCT 4270–01
IAS/IFRS vs. US GAAP: IAS 38
IAS 38 is an accounting standard regarding intangible assets. It supplies accounting rules for intangible assets that are purchased, acquired in a business
combination, and internally generated. According to Investopedia, intangible assets are nonmonetary assets without a physical presence, that have
useful lives greater than one year. This type of asset is held for use in the production of goods or services, for rental to others, or administrative
purposes. Examples of intangible assets include trademarks, customer lists, licensing agreements, service contracts, etc. Brand name ... Show more
Costs incurred during the planning stage should be recognized as an expense when incurred. Application and infrastructure development, graphical
design, and content development stages are closely related to the development phase of IAS 38.57 which states, "Development costs are capitalized
only after technical and commercial feasibility of the asset for sale or use have been established." Expenditures induced during the stated stages should
be covered in the total cost the website and recognized as an intangible asset when the cost can be instantly allocated on a reliable and consistent basis.
Costs incurred in the content development stage should be recognized as expenses as incurred in accordance with IAS 38.69. The following are some
costs identified by IAS 38.69 to be expensed: start–up, pre–opening, pre–operating, training, and relocation costs. Expenses incurred in the operating
stage are treated the same way.
Purchased intangibles are originally valued at cost. The useful life of this asset is considered finite or indefinite. The residual value is presumed to be
zero unless certain circumstances occur. The asset's useful life is deemed indefinite when there is no estimable limit to the period over which it is
expected to generate cash flows for the entity. An asset with an indefinite life requires no amortization until the life is determined to be definite. Under
IAS 38 and U.S. GAAP, intangibles acquired in a business

Financial Accounting : An Intangible Asset
2102AFE Financial Accounting Business Report
Kirubhakar rajan madhan rajan
An intangible asset is an identifiable non–monetary asset without physical substance. (AASB 138, para 8). In order for an asset to be recognised as an
intangible asset three main characteristics have to be met namely they are: (i) identifiable, (ii) non–monetary, (iii) without physical substance. An
intangible asset can either be separately acquired or internally generated. This report will focus on the accounting treatment of internally generated
intangible assets prior to and after the adoption of IFRS.
IFRS are a set of International accounting standards issued by the International accounting standard board stating how particular set of transactions ...
It also specifically prohibits the recognition of Goodwill, Brands, Mastheads, Trademarks, Customer lists and an intangible asset arising from the
research phase or an internal project. In order for an intangible asset to be recognised arising from the development phase all the below stated
conditions must be performed:
The technical feasibility of completing the intangible asset so that it will be available for use or sale. b) Company's purpose to complete the intangible
asset and use or sell it. c) Company's capability to use or sell the intangible assets. d) How the intangible asset will generate probable future economic
benefits. e) The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset. And
f) Company's ability to measure reliably the expenditure attributable to the intangible asset during its development. (Cpaaustraliacomau, 2010). After
the recognition of the intangible asset it needs to measured, the measurement of an intangible asset depends on how it is acquired so the internally
generated intangible assets are measured as cost determined as the sum of expenditure incurred from the date when the intangible assets met the
recognition criteria. (Cpaaustraliacomau, 2010). After the measurement of the intangible asset either cost model or revaluation model can applied. Cost
model states that "An intangible asset

The Goal Of The Accounting And Audit Professions Essay
The goal of the accounting and audit professions is to provide statements and information on behalf of a firm that are reliable and relevant to users. In
order to accomplish this goal, the accounting and audit professions have continuously evolved in order to meet the needs of said users. In this new age
of accounting, we feel the need for accountants and auditors to further modify their methodology and process. With the focus of accounting and
auditing staying the same, we in the profession must be sure to strive to produce valuable information to the end users. First we will discuss the
importance of intangibles and their value to a company. This value is being under disclosed using traditional accounting methods, and therefore the
accounting profession must be modified in order to properly value intangibles when presenting users with the finished financial statements. Secondly,
this paper will divulge into how the effects of corporate disclosures through new media may inadvertently force auditing profession to adapt
accordingly. Due to corporations having the ability to disclose earnings using new media, the users of this information need to be able to recognize that
it is trustworthy. Lastly, the idea of new emerging technologies causing the auditing profession to change will be discussed. While companies have yet
to adapt the mainstream use of computer systems, the future of bookkeeping will most likely be done entirely by computer systems, thereby rendering
the

Johnson & Johnson And Johnson
Company History Johnson & Johnson was founded in 1886 by a New England Druggist named Robert Wood Johnson. Robert had his ingenuity
inspired when Joseph Lister revealed that infections in the operating room were caused by airborne germs. Robert joined with his brothers, James
and Edward, and started producing dressings in New Brunswick, New Jersey in 1886. They started with only 14 employees and were situated in an
old wallpaper factory. Johnson and Johnson became incorporated in 1887. (Johnson & Johnson) Today one of the largest health care companies in
the world is Johnson & Johnson. They now have over 128,000 employees and more than 250 operational subsidiaries located in 60 countries around
the world. Johnson & Johnson has more than $132.6 billion in total assets. Johnson & Johnson's headquarters, however, is still located in New
Brunswick, New Jersey. Johnson & Johnson research, develop, manufacture, as well as sell health care products all over the world. (Johnson &
Johnson) Johnson & Johnson's operations are categorized into three business divisions: Consumer, Medical Devices and Diagnostics, and
Pharmaceutical. The Consumer segment's products are promoted to the overall public and sold to both retail outlets and distributors all over the
world. These products include wound care, skin care, baby care, and wellness and prevention platforms just to name a few. The Medical Devices and
Diagnostics segment involves disposable contact lenses, surgical and bio–surgical

Disney Intangibles Assets
The Walt Disney Company has a wide reach within their industry. Their business segments include: Consumer Products, Media Networks, Studio
Entertainment, Parks and Recreation, and Interactive. (Dalavagas, 2016) Intangibles assets are the foundation of the Disney empire. Children would
read the journeys of Disney princesses and other characters as they went from the exposition to the resolution with a fairytale ending. As the company
began to have such a large success they started to turn these stories into movies and television shows. This gave all the children who grew up reading
about the Disney characters an opportunity to watch the vision they created in their minds, come alive on the screen in front of them. Now families
were given the... Show more content on Helpwriting.net ...
There are eleven around the world, and that number does not include the water parks. These parks take the concepts from all the books and
movies and bring the stories to life for a magical experience. Something that a lot of people pride Disney on is their willingness to make sure their
theme parks are as close to the image they provided through their books and movies as possible. So the cast members fit the description of the each
character, down their height and weight. The rides and attractions are made to replicate the storylines created for each concept within the Disney
Company. Each ride even has a gift shop, so as you exit you can purchase something to remember the experience you had at the park, as well as have
something to connect to one of your favorite storylines. Both the tangible and intangible assets contribute to Disney's large financial success. But their
tangible assets are what set them apart from companies like CBS and Fox. Even though both companies provide similar intangible assets through what
they broadcast. Disney is able to establish heterogeneous resources, compared to their competition because they take what is on screen and in books
are create a live

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