Accounting presentation(updated)
•Download as PPTX, PDF•
1 like•103 views
This document discusses intangible assets, which are non-physical assets that provide future economic benefits. The key points covered are: intangible assets include things like patents, trademarks, and goodwill; purchased intangibles are recorded at cost while internally-created costs are expensed; intangibles have either definite or indefinite useful lives which determine if they are amortized; impairment tests are used to write down intangible asset values if recoverable amounts are less than carrying amounts; and research and development costs are always expensed when incurred due to difficulties in tracking costs and benefits.
Report
Share
Report
Share
Recommended
Financial instruments
This document provides an overview of different types of financial instruments, including capital market instruments and money market instruments. It discusses equity shares, preference shares, debentures, bonds, and derivative instruments as capital market instruments. It also covers treasury bills, certificates of deposits, commercial papers, repurchase agreements, and banker's acceptances as money market instruments. Key features and classifications of each instrument are described.
Financial instruments-CIMA Professional Gateway
The document discusses key concepts relating to financial instruments including definitions, classification, measurement and hedge accounting. It defines financial instruments as contracts that give rise to financial assets of one entity and financial liabilities or equity of another. It also discusses the classification of financial assets and liabilities under IAS 39 and IFRS 9. The document provides examples of different types of financial instruments like debt, equity and derivatives. It explains the accounting for compound financial instruments. Finally, the document discusses hedge accounting and provides examples of fair value and cash flow hedges.
Alhuda CIBE - Challenges to Making Sukuk Shariah Compalience by Dr. M. Anas
Alhuda CIBE - Challenges to Making Sukuk Shariah Compalience by Dr. M. AnasAlhuda Centre of Islamic Banking & Economics
This document discusses the challenges in making sukuk (Islamic financial certificates) fully shariah compliant. It outlines the definitions of key terms like sukuk and financial instruments. It then explains that most sukuk structures are based on leased real assets, as negotiability in shariah is only granted to those willing to own real assets. However, it notes that not all leases are equal - there are differences between financial and operating leases that must be considered. The document argues that stipulating that the lessee must repurchase the leased asset at the original price transforms the funds into a loan, which has serious shariah and economic consequences. It concludes that more work needs to be done to ensureAS 30 Part I
Financial instruments are contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. There are several types of financial instruments including cash, receivables, payables, loans, bonds, derivatives, and equity instruments. Financial instruments are classified and accounted for differently depending on whether they are assets, liabilities, or equity. Financial assets are classified as financial assets at fair value through profit or loss, held-to-maturity, loans and receivables, or available-for-sale. Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities. The classification of financial instruments affects how they are measured and presented in financial statements
EQUALIZATION
This document discusses equalization, which refers to an accounting methodology used to ensure incentive fees are fairly allocated among investors in funds that pay performance fees. Equalization is necessary when there is active investing and redemptions to prevent inequities between shareholders. Key terms discussed include high water mark, incentive/performance fees, hurdle rate, and the free ride effect experienced by new investors. The document also examines issues like clawbacks that can occur and different equalization methods used like separate share series and consolidated approaches.
Financial assets ch02
This document discusses various types of financial assets and instruments. It begins by defining real assets as tangible items and financial assets as promises to distribute future cash flows. It then lists and describes various short-term and long-term debt instruments, as well as equity instruments like preferred and common stock. Derivatives, which derive their value from underlying assets, are also covered. The document considers factors in choosing different financial instruments from both issuer and investor perspectives.
Financial instruments
This document discusses various types of financial instruments, including capital market instruments like equity shares and preference shares, as well as money market instruments. Equity shares represent ownership in a company and give shareholders voting rights and a claim on residual assets. Preference shares have preferential rights to dividends and repayment of capital. The document also covers debentures, bonds, derivatives and money market instruments like treasury bills, certificates of deposit, commercial paper, repurchase agreements, and banker's acceptances.
Hedge Fund Overview
The document provides an overview of hedge funds and hedge fund administration. It defines a hedge fund as a private investment partnership that employs both long and short positions, leverage, and derivatives to be less dependent on market direction than traditional investments. Hedge funds are largely unregulated and require high minimum investments. The document reviews the growth of hedge funds globally and lists the largest hedge funds in the US and UK. It describes the role of a hedge fund administrator in providing administrative, operational, financial, tax, and compliance support to reduce costs and burdens for fund managers and provide reassurance to investors. Key services mentioned include custody, accounting, operations, and middle office functions.
Recommended
Financial instruments
This document provides an overview of different types of financial instruments, including capital market instruments and money market instruments. It discusses equity shares, preference shares, debentures, bonds, and derivative instruments as capital market instruments. It also covers treasury bills, certificates of deposits, commercial papers, repurchase agreements, and banker's acceptances as money market instruments. Key features and classifications of each instrument are described.
Financial instruments-CIMA Professional Gateway
The document discusses key concepts relating to financial instruments including definitions, classification, measurement and hedge accounting. It defines financial instruments as contracts that give rise to financial assets of one entity and financial liabilities or equity of another. It also discusses the classification of financial assets and liabilities under IAS 39 and IFRS 9. The document provides examples of different types of financial instruments like debt, equity and derivatives. It explains the accounting for compound financial instruments. Finally, the document discusses hedge accounting and provides examples of fair value and cash flow hedges.
Alhuda CIBE - Challenges to Making Sukuk Shariah Compalience by Dr. M. Anas
Alhuda CIBE - Challenges to Making Sukuk Shariah Compalience by Dr. M. AnasAlhuda Centre of Islamic Banking & Economics
This document discusses the challenges in making sukuk (Islamic financial certificates) fully shariah compliant. It outlines the definitions of key terms like sukuk and financial instruments. It then explains that most sukuk structures are based on leased real assets, as negotiability in shariah is only granted to those willing to own real assets. However, it notes that not all leases are equal - there are differences between financial and operating leases that must be considered. The document argues that stipulating that the lessee must repurchase the leased asset at the original price transforms the funds into a loan, which has serious shariah and economic consequences. It concludes that more work needs to be done to ensureAS 30 Part I
Financial instruments are contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. There are several types of financial instruments including cash, receivables, payables, loans, bonds, derivatives, and equity instruments. Financial instruments are classified and accounted for differently depending on whether they are assets, liabilities, or equity. Financial assets are classified as financial assets at fair value through profit or loss, held-to-maturity, loans and receivables, or available-for-sale. Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities. The classification of financial instruments affects how they are measured and presented in financial statements
EQUALIZATION
This document discusses equalization, which refers to an accounting methodology used to ensure incentive fees are fairly allocated among investors in funds that pay performance fees. Equalization is necessary when there is active investing and redemptions to prevent inequities between shareholders. Key terms discussed include high water mark, incentive/performance fees, hurdle rate, and the free ride effect experienced by new investors. The document also examines issues like clawbacks that can occur and different equalization methods used like separate share series and consolidated approaches.
Financial assets ch02
This document discusses various types of financial assets and instruments. It begins by defining real assets as tangible items and financial assets as promises to distribute future cash flows. It then lists and describes various short-term and long-term debt instruments, as well as equity instruments like preferred and common stock. Derivatives, which derive their value from underlying assets, are also covered. The document considers factors in choosing different financial instruments from both issuer and investor perspectives.
Financial instruments
This document discusses various types of financial instruments, including capital market instruments like equity shares and preference shares, as well as money market instruments. Equity shares represent ownership in a company and give shareholders voting rights and a claim on residual assets. Preference shares have preferential rights to dividends and repayment of capital. The document also covers debentures, bonds, derivatives and money market instruments like treasury bills, certificates of deposit, commercial paper, repurchase agreements, and banker's acceptances.
Hedge Fund Overview
The document provides an overview of hedge funds and hedge fund administration. It defines a hedge fund as a private investment partnership that employs both long and short positions, leverage, and derivatives to be less dependent on market direction than traditional investments. Hedge funds are largely unregulated and require high minimum investments. The document reviews the growth of hedge funds globally and lists the largest hedge funds in the US and UK. It describes the role of a hedge fund administrator in providing administrative, operational, financial, tax, and compliance support to reduce costs and burdens for fund managers and provide reassurance to investors. Key services mentioned include custody, accounting, operations, and middle office functions.
Mfs
A bought out deal is a method for companies to offer securities through a sponsor such as a bank. The sponsor lists the securities on stock exchanges and reimburses costs for the issuing company. Terms are agreed upon by the company and sponsor. Only private companies can use this method under Indian regulations. It involves the company, sponsor, and investors. The sponsor forms a syndicate and negotiates a sale price with the company. Funds are locked in for a period. Listing generally occurs when the company is profitable and liquid. Benefits include speedy sale of securities, freedom for companies to set prices, better investor protection, and improved quality of offerings.
Equity
This document defines equity and describes different types of equities such as ordinary shares, deferred shares, and preferred stock. It explains why companies issue shares and how equity is traded in markets. The roles of various entities in the trading process are outlined, including stock exchanges, brokers/dealers, prime brokers, custodians, and clearing houses. Trade order types and reconciliation processes are also discussed.
Financial Instrument - Devesh
The document summarizes various types of financial instruments including warrants, options, private equity, and bonds. Warrants give the holder the right to purchase shares at a specified price within a set time period. Options provide the opportunity to buy or sell an asset at a stated price on or before expiration. Private equity consists of non-publicly traded equity securities and includes leveraged buyouts, venture capital for launching or expanding businesses, and growth capital for more mature companies. Bonds are debt securities where the issuer owes principal and interest to holders at maturity.
Financial engineering
Financial engineering involves the design and implementation of innovative financial products and processes. It deals with creating new financial instruments or repackaging existing ones. Some examples of financial engineering in India include debt-oriented mutual funds, interest rate futures, and floating rate bonds. Financial engineering can be applied to equity, debt, hybrid instruments, and derivatives. It is used by investment banks and for purposes like risk management, valuation, and portfolio management. The field needs further development to provide more choices for investors and corporations to improve financial efficiency and solutions.
Financial instruments (finance 1)
This document discusses the key characteristics and differences between various types of financial instruments. It describes stocks, bonds, notes, certificates of deposit, pre-need plans, treasury bills, life insurance plans, and banker's acceptances. The main differences highlighted include denomination, maturity, the type of claim against the issuer, collateral, terms of repricing, marketability, forms of interest payment, and currency denomination.
Secondary market
1) The secondary market refers to the market where existing securities are traded, providing a platform for investors to buy and sell securities that are already listed on a stock exchange.
2) The primary difference between the primary and secondary market is that in the primary market, securities are first offered to the public for subscription to raise capital, while in the secondary market, already existing securities are traded.
3) Stock exchanges like NSE provide a trading platform regulated by SEBI, where transactions in securities can be done electronically through systems like NEAT.
Ias 32
IAS 32 provides guidance on classifying financial instruments as either financial liabilities or equity. A financial liability is a contractual obligation to deliver cash or another financial asset. An equity instrument is a contract that provides residual interest in the assets of an entity after deducting all liabilities.
The standard establishes several criteria for classifying financial instruments as equity rather than financial liabilities, including having no contractual obligation to deliver cash or another financial asset (except for settlement in the issuer's own equity instruments) and providing pro rata shares of net assets upon liquidation.
Treasury shares (an entity's own shares it acquires) are deducted from equity. No gains or losses arise on treasury share transactions and related
Financial Engineering
This document discusses how accounting books can be engineered to the advantage of shareholders under accounting regulations like FASB and IFRS. It provides an example of how goodwill and intangible assets are treated differently under FASB 142 compared to previous rules. Financial engineering techniques can structure statements to maximize reported earnings through interpretations of accounting rules that are legal and aim to benefit the corporation. The document also discusses challenges in valuing intangible assets and provides a demonstration of the effect of FAS 142 on a company's balance sheet through an example.
Financialinstruments
This document provides an overview of various types of financial instruments, including capital market instruments, money market instruments, equity shares, preference shares, debentures, bonds, and derivative instruments. It describes the key features and classifications of each type. For example, it explains that equity shares represent ownership in a company and give shareholders voting rights and preemptive rights, while preference shares provide a fixed dividend payment and preferential treatment in liquidation over equity shares.
Islamic Investment : Call warrant
Call warrants give the holder the right to purchase the underlying asset, such as a share of stock, at a predetermined price (the exercise or strike price) on or before the expiration date. They are issued by companies and trade on exchanges separately from the underlying asset. While call warrants offer unlimited upside if the underlying asset rises above the strike price, potential losses are limited to the amount invested. Key terms that define a call warrant include the issuer, underlying asset, exercise price, expiration date, and entitlement or conversion ratio.
Derivatives in Islamic Finance - an overview
This article will describe about an overview of derivatives in Islamic Finance. Derivative is a "claim on a claim" the value of the derivative will depend on the value of the asset (stocks, bonds, etc) on which it has a claim.
2. investment alternatives
There are many investment alternatives available to investors including equity shares, debentures, bonds, government securities, money market securities, bank deposits, post office deposits, life insurance, mutual funds, and real assets. However, it can be difficult for investors to choose the best option due to lack of awareness about the different alternatives. The document then provides further details about types of securities, tax shelter saving schemes, advantages of life insurance, classifications of mutual funds, and examples of real assets.
Unit 5 Factoring and Forfaiting - FIS
This document provides an overview of factoring and forfaiting. It defines factoring as the financial transaction where a business sells its accounts receivable to a third party called a factor at a discount. Forfaiting refers to the financing of receivables related to international trade where the right to export receivables is purchased by a financial intermediary without recourse. The document outlines the key parties involved in factoring and forfaiting, the different types of factoring arrangements, the functions of a factor, and the information and documents required by a forfaiter.
Hedge New Rules
The document discusses accounting for foreign currency transactions and hedging under IAS 39. It covers determining functional currency, types of hedges, hedge documentation requirements, assessing hedge effectiveness, measuring ineffectiveness, and journal entries. Key steps include determining functional currency, type of hedge, documenting the hedge relationship, valuing derivatives, quantifying ineffectiveness, and preparing journal entries.
Financial Instruments & services
This document discusses various financial instruments and services. It defines different types of equity shares, preference shares, bonds, debentures, commercial paper and treasury bills. It also describes various fund-based financial services including working capital loans, term loans, venture capital, and non-fund based services such as merchant banking and credit ratings. Retail financing services for individuals include deposits, loans, insurance and mutual funds. Financial services for corporations include underwriting, portfolio management, mergers and acquisitions. The informal financial system consists of money lenders, community groups and local partnership firms.
Derivative(new)
Derivatives are securities whose value is derived from an underlying asset such as stocks, bonds, currencies, or commodities. There are several types of derivatives including forwards, futures, options, and warrants. Futures contracts obligate the buyer to purchase an asset at a predetermined future date and price. They are standardized and exchange-traded. Options contracts provide the right but not the obligation to buy or sell an underlying asset at a strike price by expiration. Margin requirements are used to minimize counterparty risk for derivatives traders.
Long term debt
This document discusses various forms of long term debt financing for companies. It describes capital markets which facilitate the trade of securities like stocks and bonds. Private placements involve direct selling of bonds to a small number of qualified institutional investors like banks and insurance companies. Commercial papers are short term unsecured notes issued by large companies and financial institutions with maturities of up to nine months. Corporate bonds are longer term debt instruments issued by corporations to raise funds. Medium term notes have maturities between 5-10 years and combine aspects of commercial papers and corporate bonds.
Intangible assets
1) Intangible assets are non-physical assets that provide long-term benefits to a company such as patents, copyrights, and goodwill.
2) The costs of intangible assets are capitalized and amortized over the shorter of their legal or economic useful life. Amortization expense is recorded systematically over time.
3) Examples of intangible assets include patents, copyrights, trademarks, goodwill, franchises, and research and development costs. The accounting treatment depends on whether the asset was internally generated or purchased.
Slide 2c intangible assets ifrs
The document summarizes accounting for intangible assets including:
1) Intangible assets are identifiable, lack physical existence, and are not monetary assets. They are normally classified as non-current assets.
2) Internally created intangibles that meet certain criteria can be capitalized, otherwise R&D costs are expensed.
3) Limited-life intangibles are amortized over their useful lives, while indefinite-life intangibles and goodwill are tested annually for impairment.
Kieso inter ch12_ ifrs
The document discusses accounting for intangible assets such as goodwill, patents, trademarks, and research and development costs. It describes characteristics of intangible assets, how to value and amortize them, types of intangibles including goodwill, procedures for recording goodwill, accounting for impairment of intangibles, conceptual issues and accounting treatment for research and development costs.
Applied Accounting Theory (Chapter 5).pptx
The document discusses the valuation of different types of assets. It defines assets as future services or benefits that are legally secured to an individual or firm. Assets are classified as fixed assets, current assets, wasting assets, intangible assets, and investments. Fixed assets are valued at historical cost less depreciation. Current assets are valued at the lower of cost or market value. Wasting assets are valued at cost less depletion. Intangible assets are valued at cost less amortization.
Basics of accounts ppt @ bec doms mba bagalkot
The document defines key accounting terminology used in basic accounts, including capital, liabilities, assets, expenses, investments, tangible and intangible assets, inventory, and revenue. It also covers the types of accounts such as personal, real, and nominal accounts. Finally, it mentions accounting cycle and rules for debit and credit.
More Related Content
What's hot
Mfs
A bought out deal is a method for companies to offer securities through a sponsor such as a bank. The sponsor lists the securities on stock exchanges and reimburses costs for the issuing company. Terms are agreed upon by the company and sponsor. Only private companies can use this method under Indian regulations. It involves the company, sponsor, and investors. The sponsor forms a syndicate and negotiates a sale price with the company. Funds are locked in for a period. Listing generally occurs when the company is profitable and liquid. Benefits include speedy sale of securities, freedom for companies to set prices, better investor protection, and improved quality of offerings.
Equity
This document defines equity and describes different types of equities such as ordinary shares, deferred shares, and preferred stock. It explains why companies issue shares and how equity is traded in markets. The roles of various entities in the trading process are outlined, including stock exchanges, brokers/dealers, prime brokers, custodians, and clearing houses. Trade order types and reconciliation processes are also discussed.
Financial Instrument - Devesh
The document summarizes various types of financial instruments including warrants, options, private equity, and bonds. Warrants give the holder the right to purchase shares at a specified price within a set time period. Options provide the opportunity to buy or sell an asset at a stated price on or before expiration. Private equity consists of non-publicly traded equity securities and includes leveraged buyouts, venture capital for launching or expanding businesses, and growth capital for more mature companies. Bonds are debt securities where the issuer owes principal and interest to holders at maturity.
Financial engineering
Financial engineering involves the design and implementation of innovative financial products and processes. It deals with creating new financial instruments or repackaging existing ones. Some examples of financial engineering in India include debt-oriented mutual funds, interest rate futures, and floating rate bonds. Financial engineering can be applied to equity, debt, hybrid instruments, and derivatives. It is used by investment banks and for purposes like risk management, valuation, and portfolio management. The field needs further development to provide more choices for investors and corporations to improve financial efficiency and solutions.
Financial instruments (finance 1)
This document discusses the key characteristics and differences between various types of financial instruments. It describes stocks, bonds, notes, certificates of deposit, pre-need plans, treasury bills, life insurance plans, and banker's acceptances. The main differences highlighted include denomination, maturity, the type of claim against the issuer, collateral, terms of repricing, marketability, forms of interest payment, and currency denomination.
Secondary market
1) The secondary market refers to the market where existing securities are traded, providing a platform for investors to buy and sell securities that are already listed on a stock exchange.
2) The primary difference between the primary and secondary market is that in the primary market, securities are first offered to the public for subscription to raise capital, while in the secondary market, already existing securities are traded.
3) Stock exchanges like NSE provide a trading platform regulated by SEBI, where transactions in securities can be done electronically through systems like NEAT.
Ias 32
IAS 32 provides guidance on classifying financial instruments as either financial liabilities or equity. A financial liability is a contractual obligation to deliver cash or another financial asset. An equity instrument is a contract that provides residual interest in the assets of an entity after deducting all liabilities.
The standard establishes several criteria for classifying financial instruments as equity rather than financial liabilities, including having no contractual obligation to deliver cash or another financial asset (except for settlement in the issuer's own equity instruments) and providing pro rata shares of net assets upon liquidation.
Treasury shares (an entity's own shares it acquires) are deducted from equity. No gains or losses arise on treasury share transactions and related
Financial Engineering
This document discusses how accounting books can be engineered to the advantage of shareholders under accounting regulations like FASB and IFRS. It provides an example of how goodwill and intangible assets are treated differently under FASB 142 compared to previous rules. Financial engineering techniques can structure statements to maximize reported earnings through interpretations of accounting rules that are legal and aim to benefit the corporation. The document also discusses challenges in valuing intangible assets and provides a demonstration of the effect of FAS 142 on a company's balance sheet through an example.
Financialinstruments
This document provides an overview of various types of financial instruments, including capital market instruments, money market instruments, equity shares, preference shares, debentures, bonds, and derivative instruments. It describes the key features and classifications of each type. For example, it explains that equity shares represent ownership in a company and give shareholders voting rights and preemptive rights, while preference shares provide a fixed dividend payment and preferential treatment in liquidation over equity shares.
Islamic Investment : Call warrant
Call warrants give the holder the right to purchase the underlying asset, such as a share of stock, at a predetermined price (the exercise or strike price) on or before the expiration date. They are issued by companies and trade on exchanges separately from the underlying asset. While call warrants offer unlimited upside if the underlying asset rises above the strike price, potential losses are limited to the amount invested. Key terms that define a call warrant include the issuer, underlying asset, exercise price, expiration date, and entitlement or conversion ratio.
Derivatives in Islamic Finance - an overview
This article will describe about an overview of derivatives in Islamic Finance. Derivative is a "claim on a claim" the value of the derivative will depend on the value of the asset (stocks, bonds, etc) on which it has a claim.
2. investment alternatives
There are many investment alternatives available to investors including equity shares, debentures, bonds, government securities, money market securities, bank deposits, post office deposits, life insurance, mutual funds, and real assets. However, it can be difficult for investors to choose the best option due to lack of awareness about the different alternatives. The document then provides further details about types of securities, tax shelter saving schemes, advantages of life insurance, classifications of mutual funds, and examples of real assets.
Unit 5 Factoring and Forfaiting - FIS
This document provides an overview of factoring and forfaiting. It defines factoring as the financial transaction where a business sells its accounts receivable to a third party called a factor at a discount. Forfaiting refers to the financing of receivables related to international trade where the right to export receivables is purchased by a financial intermediary without recourse. The document outlines the key parties involved in factoring and forfaiting, the different types of factoring arrangements, the functions of a factor, and the information and documents required by a forfaiter.
Hedge New Rules
The document discusses accounting for foreign currency transactions and hedging under IAS 39. It covers determining functional currency, types of hedges, hedge documentation requirements, assessing hedge effectiveness, measuring ineffectiveness, and journal entries. Key steps include determining functional currency, type of hedge, documenting the hedge relationship, valuing derivatives, quantifying ineffectiveness, and preparing journal entries.
Financial Instruments & services
This document discusses various financial instruments and services. It defines different types of equity shares, preference shares, bonds, debentures, commercial paper and treasury bills. It also describes various fund-based financial services including working capital loans, term loans, venture capital, and non-fund based services such as merchant banking and credit ratings. Retail financing services for individuals include deposits, loans, insurance and mutual funds. Financial services for corporations include underwriting, portfolio management, mergers and acquisitions. The informal financial system consists of money lenders, community groups and local partnership firms.
Derivative(new)
Derivatives are securities whose value is derived from an underlying asset such as stocks, bonds, currencies, or commodities. There are several types of derivatives including forwards, futures, options, and warrants. Futures contracts obligate the buyer to purchase an asset at a predetermined future date and price. They are standardized and exchange-traded. Options contracts provide the right but not the obligation to buy or sell an underlying asset at a strike price by expiration. Margin requirements are used to minimize counterparty risk for derivatives traders.
Long term debt
This document discusses various forms of long term debt financing for companies. It describes capital markets which facilitate the trade of securities like stocks and bonds. Private placements involve direct selling of bonds to a small number of qualified institutional investors like banks and insurance companies. Commercial papers are short term unsecured notes issued by large companies and financial institutions with maturities of up to nine months. Corporate bonds are longer term debt instruments issued by corporations to raise funds. Medium term notes have maturities between 5-10 years and combine aspects of commercial papers and corporate bonds.
What's hot (17)
Similar to Accounting presentation(updated)
Intangible assets
1) Intangible assets are non-physical assets that provide long-term benefits to a company such as patents, copyrights, and goodwill.
2) The costs of intangible assets are capitalized and amortized over the shorter of their legal or economic useful life. Amortization expense is recorded systematically over time.
3) Examples of intangible assets include patents, copyrights, trademarks, goodwill, franchises, and research and development costs. The accounting treatment depends on whether the asset was internally generated or purchased.
Slide 2c intangible assets ifrs
The document summarizes accounting for intangible assets including:
1) Intangible assets are identifiable, lack physical existence, and are not monetary assets. They are normally classified as non-current assets.
2) Internally created intangibles that meet certain criteria can be capitalized, otherwise R&D costs are expensed.
3) Limited-life intangibles are amortized over their useful lives, while indefinite-life intangibles and goodwill are tested annually for impairment.
Kieso inter ch12_ ifrs
The document discusses accounting for intangible assets such as goodwill, patents, trademarks, and research and development costs. It describes characteristics of intangible assets, how to value and amortize them, types of intangibles including goodwill, procedures for recording goodwill, accounting for impairment of intangibles, conceptual issues and accounting treatment for research and development costs.
Applied Accounting Theory (Chapter 5).pptx
The document discusses the valuation of different types of assets. It defines assets as future services or benefits that are legally secured to an individual or firm. Assets are classified as fixed assets, current assets, wasting assets, intangible assets, and investments. Fixed assets are valued at historical cost less depreciation. Current assets are valued at the lower of cost or market value. Wasting assets are valued at cost less depletion. Intangible assets are valued at cost less amortization.
Basics of accounts ppt @ bec doms mba bagalkot
The document defines key accounting terminology used in basic accounts, including capital, liabilities, assets, expenses, investments, tangible and intangible assets, inventory, and revenue. It also covers the types of accounts such as personal, real, and nominal accounts. Finally, it mentions accounting cycle and rules for debit and credit.
Understanding the Balance Sheet.
This document provides an overview of accounting concepts related to balance sheets, including definitions and explanations of key items that appear on a balance sheet. It begins with an introduction to balance sheets and how they show a business's assets and liabilities at a point in time. It then defines and explains common items that make up sources of funds (equity and liabilities), applications of funds (assets), as well as other accounting concepts like provisions, receivables, payables, and work-in-progress. The document aims to help readers understand the key components of a balance sheet and their meanings.
ENM5201_week 7.pdf
The document discusses financial statements and balance sheets. It explains that public companies must produce four financial statements: the balance sheet, income statement, statement of cash flows, and statement of stockholders' equity. The balance sheet lists a company's assets, liabilities, and stockholders' equity at a point in time. It is divided into current and long-term assets and current and long-term liabilities. The difference between assets and liabilities is the stockholders' equity. While the balance sheet provides information, it does not always accurately reflect the true value of a company's equity.
Accounting Lec#10.pptx
Corporations are legal entities that allow for ownership shares to be traded publicly. They have a separate legal existence from owners and can raise large amounts of capital through stock sales. Ownership is represented by shares of stock. Corporations are controlled by shareholders who elect a board of directors to oversee management. They provide advantages like limited liability but are also subject to double taxation.
Intangible Assets, Patents, Copyrights
Intangible Assets, Patents, copyrights, and trademarks, franchises, goodwill, leases, amortization, depletion, jose cintron, advance business consulting, mba4help.com
Intangible Assets
Intangible assets are defined as those non-monetary assets of a company that cannot be seen, touched or physically measured, whereas with a tangible asset you can “stub your toe” on it
Business jargons
This document defines various business and financial terms grouped under headings such as accounts, markets, contracts, profits and more. It provides definitions for common jargon used in accounting, finance and business management. Key terms defined include accounts payable, accounts receivable, blue chip companies, bull and bear markets, bonds, dividends, EBITDA, futures contracts, hedging, insolvency, IPOs, mergers and acquisitions, margins and more.
Verification and valuation of assets and liabilities
The document discusses the verification and valuation of various assets and liabilities. It defines verification as examining the existence and ownership of assets, while valuation determines their current worth. Some key points:
- Current assets include cash, debtors, prepaid expenses and stock. Fixed assets include land, buildings, plant and equipment. Intangible assets lack physical existence but can be realized, like goodwill.
- Verification includes examining documents like deeds and agreements to validate ownership and values. Valuation methods consider depreciation, market values, and accounting standards.
- Contingent assets and liabilities may arise in future and are disclosed in footnotes rather than accounted for. Events after the balance sheet may require
INd As 16.pdf
IND AS 16 provides guidance on accounting for plant, property and equipment (PPE). Key points include:
- An asset must meet the definition of a PPE to be classified as such, which includes being held for use in production, rental or administration with a useful life of more than 12 months.
- Initial recognition of a PPE involves capitalizing all costs required to bring the asset to working condition. Special cases like barter transactions also have specific guidance.
- Subsequent expenditures are generally expensed unless increasing the life or efficiency of the asset. Major replacements are capitalized by adjusting the carrying value.
- PPE can be carried at cost or revaluation model with periodic revaluations and accounting for
Audit of treasury
The document discusses guidelines for classifying, valuing, and accounting for investments in a bank's portfolio. It outlines three classifications for investments - Held to Maturity, Available for Sale, and Held for Trading - and rules around shifting between categories. It also covers income recognition, non-performing investments, valuation methods for each classification including use of fair value and provisions, and maintaining regulatory reserves like the Investment Fluctuation Reserve. Record keeping for investments held via the Subsidiary General Ledger account with the RBI is also summarized.
Assets and liablity
This document discusses assets and liabilities in accounting theory. It defines assets as probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Assets are classified as fixed, current, tangible, and intangible. Liabilities are defined as obligations of an entity to transfer economic benefits in the future. Liabilities are classified as current or long-term. The key difference between assets and liabilities is that assets are resources owned by the entity, while liabilities are amounts owed by the entity.
Ias36impairmentofassets 150604175400-lva1-app6891
The document discusses two International Accounting Standards: IAS 36 Impairment of Assets and IAS 40 Investment Property.
IAS 36 provides guidance on recognizing and measuring impairment losses on assets. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount, defined as the higher of an asset's fair value less costs to sell or its value in use.
IAS 40 provides the accounting requirements for investment property, which is property held to earn rentals or for capital appreciation. Investment property can be measured initially at cost and subsequently using either the fair value model or cost model.
Farm balance-sheet-analysis2765
Farm balance sheets provide an overview of a farm's financial position by listing everything owned (assets) and owed (liabilities) at a point in time. The balance sheet is used to measure financial ratios that assess the farm's solvency and liquidity. Assets are valued using either cost basis or market basis, with the market basis reflecting current market values. Common assets include current assets like crops and livestock and non-current assets like machinery, buildings, and land. Depreciation is used to allocate the cost of long-term assets like equipment over their useful lives.
Income Investing
If you need to know how to invest into cash flow investment real estate then check out this presentation. Email me at aduggal@rernj.com to request the video that further explains these slides.
reit-introduction-lecture.ppt
1. The document discusses Real Estate Investment Trusts (REITs) and Real Estate Operating Companies (REOCs), defining them and comparing their structures.
2. It provides an overview of asset securitization and how it has changed investment and financing decisions by allowing investors to own real estate assets both directly and indirectly.
3. The document outlines the key requirements for US REITs and describes the major types of REITs including equity, mortgage, and hybrid REITs as well as innovations like Umbrella Partnership REITs (UPREITs) which allowed property owners to sell to REITs without tax consequences.
Similar to Accounting presentation(updated) (20)
Verification and valuation of assets and liabilities
Verification and valuation of assets and liabilities
Recently uploaded
BBR 2024 Summer Sessions Interview Training
Qualitative research interview training by Professor Katrina Pritchard and Dr Helen Williams
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...Nguyen Thanh Tu Collection
https://app.box.com/s/y977uz6bpd3af4qsebv7r9b7s21935vdHow to Create a More Engaging and Human Online Learning Experience
How to Create a More Engaging and Human Online Learning Experience Wahiba Chair Training & Consulting
Wahiba Chair's Talk at the 2024 Learning Ideas Conference. Walmart Business+ and Spark Good for Nonprofits.pdf
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
Constructing Your Course Container for Effective Communication
Communicating effectively and consistently with students can help them feel at ease during their learning experience and provide the instructor with a communication trail to track the course's progress. This workshop will take you through constructing an engaging course container to facilitate effective communication.
Solutons Maths Escape Room Spatial .pptx
Solutions of Puzzles of Mathematics Escape Room Game in Spatial.io
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...Nguyen Thanh Tu Collection
https://app.box.com/s/tacvl9ekroe9hqupdnjruiypvm9rdaneRHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
Physical pharmaceutics notes for B.pharm students
Leveraging Generative AI to Drive Nonprofit Innovation
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47
Event Link:- https://meetups.mulesoft.com/events/details/mulesoft-mysore-presents-mule-event-processing-models/
Agenda
● What is event processing in MuleSoft?
● Types of event processing models in Mule 4
● Distinction between the reactive, parallel, blocking & non-blocking processing
For Upcoming Meetups Join Mysore Meetup Group - https://meetups.mulesoft.com/mysore/YouTube:- youtube.com/@mulesoftmysore
Mysore WhatsApp group:- https://chat.whatsapp.com/EhqtHtCC75vCAX7gaO842N
Speaker:-
Shivani Yasaswi - https://www.linkedin.com/in/shivaniyasaswi/
Organizers:-
Shubham Chaurasia - https://www.linkedin.com/in/shubhamchaurasia1/
Giridhar Meka - https://www.linkedin.com/in/giridharmeka
Priya Shaw - https://www.linkedin.com/in/priya-shaw
Chapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
-------------------------------------------------------------------------------
Find out more about ISO training and certification services
Training: ISO/IEC 27001 Information Security Management System - EN | PECB
ISO/IEC 42001 Artificial Intelligence Management System - EN | PECB
General Data Protection Regulation (GDPR) - Training Courses - EN | PECB
Webinars: https://pecb.com/webinars
Article: https://pecb.com/article
-------------------------------------------------------------------------------
For more information about PECB:
Website: https://pecb.com/
LinkedIn: https://www.linkedin.com/company/pecb/
Facebook: https://www.facebook.com/PECBInternational/
Slideshare: http://www.slideshare.net/PECBCERTIFICATION
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
How to Setup Warehouse & Location in Odoo 17 Inventory
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
Recently uploaded (20)
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
How to Create a More Engaging and Human Online Learning Experience
How to Create a More Engaging and Human Online Learning Experience
Walmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdf
Constructing Your Course Container for Effective Communication
Constructing Your Course Container for Effective Communication
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47
Chapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering.pptx
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
How to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 Inventory
Accounting presentation(updated)
- 1. ACCOUNTINGPRESENTATION Nader Nehal (B1405011) Kousar Sharmin Jany (B1405020) Faiaz Sababa Saeed (B1405023) Syeda Afrida Haque (B1405038) FazleeWahid Omi (B14050113) Sk.Mamunur Rashid Sady (B1405144) Group-3
- 4. LET’S DEFINE
- 5. An asset that is not physicalin nature. 'IntangibleAsset ' is
- 8. INTANGIBLE ASSETS REPRESENTS “POTENTIAL REVENUE”
- 9. LEAKYCOULDRON ANDPAPER PLANE CO. *INFINITE*
- 10. INTANGIBLE ASSTESTCAN BE “INTELLECTUAL PROPERTY”
- 13. Two Main Characteristics: Characteristics (1) Lack of physical existence. (2) They are not financial instruments. Normally classified as long-term asset. Common types of intangibles: Patents Copyrights Franchisesorlicenses Trademarksortradenames Goodwill INTANGIBLE ASSETSISSUES
- 14. Purchased Intangibles: Recorded at cost. If purchased in exchangeof stock, the fair value of the consideration given or received which isevident, should be recognized. Includes all costs necessary to make the intangible asset ready for its intended use. VALUATION INTANGIBLE ASSETSISSUES
- 15. InternallyCreated Intangibles: Expense as incurred Onlycapitalize direct costs incurred in developing the intangible,such as legalcosts. INTANGIBLE ASSETSISSUES
- 16. Determine TheUseful Life •Expected Use •Useful Lifeof relative assets •LegalRegulatory ConceptualFramework •Limitingusefullife •Law supporting renewal orextension •Effect of obsolesce, demand, competition. Levelof Maintenancecost INTANGIBLE ASSETSISSUES
- 17. Limited-Life Intangibles: • Amortize to (Cost Less Residual Value) • Assume zero Residual value unlessit hasvalue to another company after its useful life • Reflect the pattern in which the company consumes the asset (if Determined) • Credit asset account or accumulated amortization. AMORTIZATION OF INTANGIBLES
- 18. Indefinite-LifeIntangibles: • No foreseeable limit on timetheasset is expected to provide cash flows. • No amortization. AMORTIZATIONOF INTANGIBLES
- 19. Six Major Categories: 1) Marketing-related. 2) Customer-related. 3) Artistic-related. 4) Contract-related. 5) Technology-related. 6) Goodwill. TYPES OF INTAGIBLES
- 20. Marketing-RelatedIntangibleAssets • Examples are: Trademarks or trade names, newspaper mastheads, Internet domain names, and noncompetition agreements. • Trademark or trade name haslegal protection for indefinite number of 10 year renewal periods. • Capitalize acquisition costs. • Noamortization. TYPES OFINTAGIBLES
- 21. Contract-Related Intangible Assets • Examples are: franchise and licensing agreements, construction permits, broadcast rights, and service or supply contracts. • Franchise (or license)with a limited life shouldbe amortized to expense over the life of the franchise. • Franchise with an indefinite life shouldbe carried at cost and not amortized. TYPES OF INTAGIBLES
- 22. Goodwill • Created by good relationships by building up a reputation. • A going concern valuation. • Measured at the time of business to be sold. • The excess or residual amount of the cost over the fair value of the identifiable net assets purchased. • The most intangible of the intangible assets. • Can not be amortized; can only be impaired. • Internally created goodwill should not be capitalized. TYPES OF INTAGIBLES
- 23. Recording: Purchased goodwill: Goodwill is recorded only whenan entire business is purchased. The difference betweenfairvalue of identifiablenet assets and purchased price is considered as goodwill. For example: ABC Ltd. purchased thenet assets of XYZ company for $500,000 on 31 December 2012. TYPES OF INTAGIBLES
- 24. Goodwill Write-off • Goodwill is considered to have an indefinite life • Should not be amortized • Only adjust carrying amount when goodwill is impaired. Bargain Purchase- Negative goodwill • Purchase price less than the fair value of the identifiable net assets acquired. • Also referred as Negative goodwill. • Results from a market imperfection. • The excess amount is recorded as again by the purchaser. TYPES OF INTANGIBLEASSETS
- 25. Impairment of Limited-Life Intangibles Same as impairment for long-lived assets in Chapter 11. 1. If the sum of the expected future netcash inflows is less thanthe carrying amount of the asset, an impairment has occurred(recoverability test). 2. Theimpairment loss is the amount by which the carrying amount of the asset exceeds the fair value of the asset (fair value test). Theloss is reported as part of income from continuing operations, “Otherexpenses and losses” section. IMPAIREMENTOF INTANGIBLEASSETS
- 26. Recoverability test: If the sum of the expected future net cashflows is less than the carrying amount of the asset, an impairment hasoccurred. Expected Future Cash Flow $ 50000 Carrying Amount $ 80000 Difference $ (30000) Asset is Impaired IMPAIREMENTOF INTANGIBLEASSETS
- 27. Impairment of Indefinite-Life Intangibles Other than Goodwill • Should be tested for impairment at leastannually. • Impairment test is a fair value test. • If the fair value of asset is less than the carrying amount, an impairment loss is recognized for the difference. • Recoverability test is not used. IMPAIREMENTOF INTANGIBLEASSETS
- 28. LASTLY
- 29. Frequently results in something that a company patents or copyrights such as: newproduct, process, idea, formula, composition, or literary work. Because of difficulties related to identifying costs with particular activities and determining the future benefits, allR & D costs are expensed whenincurred. RESEARCHAND DEVELOPMENTCOST
- 30. THANK YOU
- 31. QUESTIONS?