This document discusses accounting for intangible assets and brands. It defines intangible assets and notes their importance, comprising 80% of company value on average. Common intangible assets include patents, copyrights, franchises, trademarks and goodwill. Intangible assets must be identified, costs measured and collected, amortized over their useful life, and reflected on financial statements. Brands are also considered intangible strategic assets that create goodwill and market share. Brand accounting requires collection and allocation of brand creation costs, valuation of the brand, and amortization of brand costs on financial statements. Valuation methods for brands include cost, market and income approaches.
Cost Accounting-
-Meaning of Cost Accounting
-Scope of Cost Accounting
-Nature of Cost Accounting
-Relationship b/w Financial Accounting & Cost Accounting
-Cost Accounting v/s Management Accounting
-Objectives of cost accounting
-Function of cost accountant
-Essentials of cost accounting
-Advantages of cost accounting
-Limitations of cost accounting
-Role of cost in cost accounting
-Cost Unit & Cost Centre
-Cost Techniques
-Costing Systems
-Costing Methods
-Cost Classification
-Components of total cost
-Cost Sheet.
Cost Accounting-
-Meaning of Cost Accounting
-Scope of Cost Accounting
-Nature of Cost Accounting
-Relationship b/w Financial Accounting & Cost Accounting
-Cost Accounting v/s Management Accounting
-Objectives of cost accounting
-Function of cost accountant
-Essentials of cost accounting
-Advantages of cost accounting
-Limitations of cost accounting
-Role of cost in cost accounting
-Cost Unit & Cost Centre
-Cost Techniques
-Costing Systems
-Costing Methods
-Cost Classification
-Components of total cost
-Cost Sheet.
Tax Planning Concept and tax planning with specific managerial decisionsSundar B N
In this ppt most of the tax planning concepts are covered. Tax planning, Tax evasion, tax avoidance, tax planning with inter corporate dividend and Bonus share. Tax Planning with specific managerial decisions are covered.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Responsibility accounting is a system of dividing an organization into similar units, each of which is to be assigned particular responsibilities. These units may be in the form of divisions, segments, departments, branches, product lines and so on. Each department is comprised of individuals who are responsible for particular tasks or managerial functions. The managers of various departments should ensure that the people in their department are doing well to achieve the goal. Responsibility accounting refers to the various concepts and tools used by managerial accountants to measure the performance of people and departments in order to ensure that the achievement of the goals set by the top management.
Responsibility accounting, therefore, represents a method of measuring the performances of various divisions of an organization. The test to identify the division is that the operating performance is separately identifiable and measurable in some way that is of practical significance to the management. Responsibility accounting collects and reports planned and actual accounting information about the inputs and outputs of responsibility centers.
Tax Planning Concept and tax planning with specific managerial decisionsSundar B N
In this ppt most of the tax planning concepts are covered. Tax planning, Tax evasion, tax avoidance, tax planning with inter corporate dividend and Bonus share. Tax Planning with specific managerial decisions are covered.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Responsibility accounting is a system of dividing an organization into similar units, each of which is to be assigned particular responsibilities. These units may be in the form of divisions, segments, departments, branches, product lines and so on. Each department is comprised of individuals who are responsible for particular tasks or managerial functions. The managers of various departments should ensure that the people in their department are doing well to achieve the goal. Responsibility accounting refers to the various concepts and tools used by managerial accountants to measure the performance of people and departments in order to ensure that the achievement of the goals set by the top management.
Responsibility accounting, therefore, represents a method of measuring the performances of various divisions of an organization. The test to identify the division is that the operating performance is separately identifiable and measurable in some way that is of practical significance to the management. Responsibility accounting collects and reports planned and actual accounting information about the inputs and outputs of responsibility centers.
Intangible Assets under IAS 38 worry people more than it needs to. Here's a straightforward presentation which covers the essentials you should know when studying IAS 38 for work or exams.
Study On The Quality Of The Patent System in Europe Enndbaf03
This study is dedicated to a comprehensive assessment of the quality of the patent system in Europe. An effective system for the protection and enforcement of intellectual property rights represents an essential element for the growth of economies, which are based on the generation and exploitation of new scientific and technological knowledge. The well-known risks of market failures in the private financing of innovation investments call for a continuous effort of policy makers to the improvements of the tools that are expected to guarantee proper private returns from R&D activities while protecting also the interests of consumers and society at large. The increased salience of patents to companies competing in the knowledge economy has raised concerns throughout the world in the past decade about the actual effectiveness of the current patent systems.
Talk at the Zagreb Festival of Digital Heritage about copyright. The issues are addressed and how Europeana together with the network tries to solve this. It also gives an overview of the different licenses being used and finally focusses on what makes good quality metadata.
Brand Relationship Quality as a Formative Third-order Construct – Findings of...CBR Conference
Presentation given at the 1st International Consumer Brand Relationships Conference, http://consumer-brand-relationships.org/
copyright by
Manfred Bruhn
Falko Eichen
Karsten Hadwich
For a business, quality is not only important, but measurable. Quality impacts a brand's influence, so businesses should strive to develop a framework to measure it.
The presentation below examines some of the following topics:
Why should biotech companies look to sell rather than go public?
How (and why) to build your deal team
Legal matters, insurance planning and tax planning
Indemnification privisions and the advantages of doing it early on
Financial statement considerations
Corporate books and other items you will need
How to position your biotech company for a sale
The subsidiary De Micco & Friends Capital invests internationally in diversified segments. At the heart of every investment decision is not only a good product, but a good communication strategy, an interesting market, and also the entrepreneur and the management team.
Besides their own investments De Micco & Friends advises private and institutional investors. De Micco & Friends Capital invests also in private equity as well as in the context of stock exchange capital market transactions, such as capital, IPOs, reverse mergers with institutional block trades or replacement of existing shareholders.
Milestone One Guidelines and Rubric For this project, cons.docxARIV4
Milestone One Guidelines and Rubric
For this project, consider this scenario: you have worked very hard and have just earned a promotion at Quality CPA firm. As part of your new responsibilities, you will be advising an influential client on their international aspirations. Their business has been booming and they are seriously considering expanding their operation overseas. They are concerned about the political and financial risks of such an undertaking.
You will build a multimedia presentation (utilizing audio, if possible, with speaker notes to elaborate) that addresses the upper management of this company. You will choose a country other than the United States. This country will be presented as a potential destination for the company, although other countries can be included, as the global market is the focus. The presentation must explore the company’s potential expansion into the chosen country, the global market in general, and how that will impact their operations.
Specifically, the following critical elements must be addressed:
I. Global Business: For this part of the assessment, convey to your audience the differences between accounting practices around the world.
A. Explain the influence of environmental issues of diversity on accounting practices.
B. Evaluate the impact of the chosen country’s culture on their financial accounting standards.
1. What accounting principles could help inform your response (i.e., Hofstede’s dimension of culture, Gray’s accounting values, etc.)?
C. Evaluate the impact of potential issues on business operations that may arise when conducting accounting business in the chosen country.
Rubric Guidelines for Submission: Your multimedia presentation should include 10–15 slides, which must be accompanied by speaker notes and may contain audio if you wish.
Critical Elements
Exemplary (100%)
Proficient (90%)
Needs Improvement (70%)
Not Evident (0%)
Value
Global Business: Diversity
Meets “Proficient” criteria and demonstrates a nuanced understanding of the underlying issues in the environmental factors
Explains the influence of environmental issues of diversity on accounting practices
Explains the influence of environmental issues of diversity on accounting practices but explanation lacks depth or detail
Does not explain the influence of environmental issues of diversity on accounting practices
30
Global Business: Culture
Meets “Proficient” criteria and supports evaluation with accounting principles
Evaluates the impact of culture of the chosen country on financial accounting standards around the world
Evaluates the impact of culture of the chosen country on financial accounting standards around the world but evaluation is cursory
Does not evaluate the impact of culture of the chosen country on financial accounting standards around the world
30
Global Business: Potential Issues
Meets “Proficient” criteria and provides keen insight into the potential issues that may ari ...
2. Introduction
“Intangible assets are all the elements of a
business enterprise that exist in addition to
working capital and tangible assets. They
are the elements, after working capital and
tangible assets, that make the business
work and are often the primary contributors
to the earning power of the enterprise. Their
existence is dependent on the presence, or
expectation, of earnings”
2
3. Characteristics of intangible assets
They are capable of legal enforcement and also of
legal transfer of ownership
They are capable of producing revenues in their
own right
The assets are capable of generating additional
resources / cash flows / profits over and above
those which the business would otherwise make if
it did not own the rights in question
They are often separable from the underlying
business
The asset can be regarded as a capital asset
rather than a carryover of recent expenditure 3
4. Importance of Intangibles
PwC research shows that total intangible assets comprise,
on average, some 80% of companies’ value.
Intangible assets may be the only thing of significant value
in the business.
This is because:
- They provide barriers to entry
-They differentiate products (even commodities)
- They provide a more stable and profitable earnings
stream
- They can have a long life (e.g. brands / trademarks)
- They may provide international recognition
4
5. Objectives of Intangible Accounting
Identification of Intangibles requirement
Measuring the cost on Intangibles
Collection of data
Amortization of cost
Reflecting the same in financial statement
Interpreting the result thereon
5
6. 6
Common Types of Intangibles
Patents,
Copyrights,
Franchises,
Trade names,
Trademarks,
Goodwill etc..
7. 7
Valuation of Intangibles
Intangibles are recorded at cost and
are also reported at cost at the end of
an accounting period.
Intangibles with limited life are subject
to amortization and possible
impairment test.
Intangibles with indefinite life are only
subject to impairment test at least
annually.
8. 8
Costs of Intangibles
Costs of Intangibles include acquisition
costs plus any other expenditures
necessary to make the intangibles ready
for the intended uses (i.e., purchase price,
legal fees, filing fees etc).
Essentially, the accounting treatment of
valuation for intangibles closely parallels
that followed by tangible assets.
9. 9
Intangibles Assets with Finite lives
Patents (20 years), copyrights (the life
of the creator plus 70 years), franchise
and license (the contractual life).
The costs are subjected to amortization
(a process of cost allocation) over the
shorter of the legal or useful life, not to
exceed 40 years.
10. 10
Amortization of Intangibles
The impairment test needed only when
events indicate that the book value may
not be recoverable.
Amortization Method: Straight-line
method.
Other method can be applied if it is more
appropriate than the S-L method.
Residual value: Usually zero.
11. Summary of the Chapter
Intangible Legal Life Amortization
Patent 20 The shorter of useful or
legal life
Copyrights Life of creator + 70
years
The shorter of useful or
legal life not to exceed
40 years
Franchises or
Licenses
Contractual
agreements
The shorter of
contractual Life or
useful life
Trade Names &
Trademarks
Unlimited (renewed
every 10 years)
Impairment test only
(at least annually)
In-Process R&D Unlimited Impairment test only
Goodwill Unlimited Impairment test only
11
13. Introduction to Brand
“A name, term, design, symbol or any other
feature that identifies one seller’s good or
service as distinct from those of other
sellers.”
Intangible Assets 13
14. Brand as a Strategic Assets
It Creates goodwill in the market
Brand enhances the market share
Brand generates huge revenue as other
assets
It creates competitive position in the market
It is an intangible asset
14
15. Need for Brand Accounting
Collection of data and cost of Brand creation
Allocation and apportionment of cost on
various centers
Valuation of brand and life
Amortization of cost of brand
Reflection on financial statement
Interpreting on the financial statement
Intangible Assets 15
16. Valuation of Brands
Homegrown Brands
The total cost incurred in order to develop
the brand
Acquired Brands
Total cost paid to purchase the brand
Intangible Assets 16
17. Practice
Intangible Assets 17
In Australia Rupert Murdoch’s News Corporation
included a valuation of some of its magazines on
its balance sheets in 1984.
British firms used brand values primarily to boost
their balance sheets.
In the United States, generally accepted
accounting principles (blanket amortization
principles) mean that placing a brand on the
balance sheet would require amortization of that
asset for up to 40 years. Such a charge would
severely hamper firm profitability; as a result,
firms avoid such accounting maneuvers.
18. General Approaches
Intangible Assets 18
In determining the value of a brand in an
acquisition or merger, firms can choose from
three main approaches:
Cost approach: Brand equity is the amount of money
that would be required to reproduce or replace the
brand
Market approach: The present value of the future
economic benefits to be derived by the owner of the
asset
Income approach: The discounted future cash flow
from the future earnings stream for the brand