discussed already

1. ACCOUNTING FOR
INTANGIBLES

3. An intangible asset.
which provides a competitive advantage .
In an acquisition, goodwill appears on the balance sheet of the acquirer .
LEADS TO …………….

4. *A STRONG
BRAND
*REPUTATION
*HIGH EMPLOYEE MORALE

5. Period ending 27 sept 2014 27 sept 2013 27 sept 2012
goodwill 4616000 1577000 1135000
Intangible asset 4142000 4179000 42240005

6. *

7. ACCOUNTING FOR INTANGIBLES
1.ARBITRARY
METHOD
2.SIMPLE AVERAGE
SUPER PROFIT METHOD
3.WEIGHTED AVERAGE
SUPER PROFIT METHOD
4.CAPITALISATION
OF AVG. PROFITS
5.CAPITALISATION OF
SUPER PROFITS
6.ANNUITY METHOD

9. Right given by law
TO THE CREATORS
OF
MUSIC
COMPOSER

10. TO THE CREATORS
OF
*Film*
 Producer
(“Gulab Gang”)

11.  Artistic work
Painting, an
engraving
 Photo 
Photograph
 Covered under the
“INDIAN COPY RIGHT
ACT 1957”

12. A.PUBLIC PERFORMING
COPY RIGHT
 GRANTED BY COUNTY ‘S
COPY RIGHT LAW.
 TO AUTHORISE THE
TRANSMISSION OF
WORK IN GENERAL
PUBLIC
 E.G LEGAL RIGHT TO
PUBLICALY SHOW A FILM
OR VIDEO

13. B. PUBLIC
PERFORMANCE
LICENCE
LISENCE IS
ISSUED ON BEHALF
OF COPY RIGHT
OWNER
 TO GRANT RIGHT
TO TRANSMIT THE
WORK IN PUBLIC
 RIGHT TO
PUBLICALLY PLAY A
SONG AT.
CLUBS
BUSES
RESTAURANTS

14. COPY RIGHT
OWNER
RECORD
COMPANY
REPRODUCTION
DISTRIBUTION
OF A
COMPOSITION
A LICENSE THAT GRANTS LIMITED PERMISSIONS.
E.G. “SUN SAATHIYA” SONG IN ABCD

15. MUSIC
PUBLISHERS(COPY
RIGHT OWNER)
PRODUCERS
GRANTING THE
RIGHT
TO SYNCHRONISE
THE MUSIC
COMPOSITION
IN TIME D
RELATION WITH
AUDIO VISUAL
IMAGES ON A TELE
FILM

16. A. VALUE OF COPY RIGHT 3,00,000
FEES (40,000)
------------------
2,60,000
------------------
B. EXPECTED LIFE OF COPY RIGHT IN BOOKS = 18
YEARS
C. AMOUNT TO BE AMORTISED DURING LIFE OF
COPYRIGHT
260000
= -----------------------
18
=14444 ANS.

18. AN IMPORTANT INTANGIBLE ASSET
GAINING IMPORTANCE NOW A DAYS
PRODUCT DOES NOT SELL ITSELF , IT IS THE
BRAND WHICH SELLS THE PRODUCT.
HUGE AMOUNTS ARE SPENT BY COMPANIES TO
MAKE THE BRAND POPULAR

19. SELF
GENERATED
BRANDS
AQUIRED
BRANDS

20.  ACQUIRED BY ACQUIRING COMPANY .
 A PARTICULAR ACQUISITION AMOUNT IS ALSO
PAID

21. ONLY BRAND
NAME IS
ACQIRED
BRAND NAME
+ACQUIRING
THE EXISTING
BUSINESS
1. 2.

22. ONLY BRAND
NAME IS
ACQIRED

23. 1. BRAND
NAME IS
ACQIRED
WITH
EXISTING
BUSINESS
-

24.  BRANDS FOR WHICH COMPANY HAS NOT
PAID ANY COST FOR ACQIRING THEM.
 BUT ACCOUNTING STANDARD
COMMITTEE
 IN U.K
HAS STRONGLY OPPOSED THE INCLUSION
OF SELF GENERATED BRANDS AS ASSET IN
BALANCE SHEET
SELF GENERATED BRANDS

25. VALUATION PROCESS OF
SELF GENERATED BRANDS

26. SELF
GENERATED
BRANDS
COST BASED
APPROACH
HISTORICAL
COST
REPLACEMENT
COST
VALUE BASED
APPROACH
MARKET PRICE
POTENTIAL
EARNING
MODEL

28. COMPANIES INCUR VARIOUS TYPES
OF COST IN CONNECTION WITH BRANDS:

29. • BY CALCULATING THE
VALUE ,IF THE BRAND
CONCERNED IS SOLD.
MARKET PRICE
MODEL
• BY DETERMINING THE
POTENTIAL EARNINGS
THAT ARE GENERATED
BY A BRAND.
POTENTIAL
EARNING
MODEL
=NET BRAND
EARNINGS*CAPITALISATION

30. {PROFITS OF BRANDED PRODUCTS-
PROFITS OF UNBRANDED
PRODUCTS}-
{MARKET COST+RESEARCH AND
DEVELOPMENT COST+TAXES ON
EXCESS INCOME}

31. THE TOTAL BRAND VALUE IS ASCERTAINED BY
SEGREGATING IT INTO 3 PARTS:

32. ASSUMPTIONS
1.CONSUMERS ARE RATIONAL
2.UTILITY IS SUMMATIVE……
3.PRICE HAS NEGATIVE UTILTTY

33. TOTAL
PRODUCT
VALUE
PRICE
UTILITY
PRO
DUCT
UTILI
TY
BRAN
D
EQUI
TY
A1
A2
A3
2ND
CONJOINT
task
1st
conjoint
task

35. *
THE CONCEPT OF BRAND EQUITY CAUGHT FANCY IN
CORPORATE WORLD DURING 1980S WHEN COMPANY
STARTED TO BUY FAMOUS BRANDS.
BEFORE 1980S COMPANIES WERE BOUGHT ON THE BASIS OF NET WORTH
 BRANDS WERE NOT CONSIDERED AS ASSET BUT THE INSTRUMENT OF
PROFITABILLITY

37. OBJECTIVES
4

38. REDUCE STRAIN
ON COMPANIES
INCOME
1

39. 32
PROVIDES
STRATEGIC BRAND
INFORMATION.
2

40. HELP IN QUOTING
3

41. 4

42. SUBMITTEDTO:-
MS. SANJNAWALIA
SUBMITTEDBY:-
JASPREET KAUR
3119
M.COM-3