Intangible Assets Of The Microsoft’s Company

Running head: ACCOUNTING
Accounting
Name of the Student:
Name of the University:
Author’s Note:

ACCOUNTING1
Table of Contents
Part A...............................................................................................................................................2
Question 1....................................................................................................................................2
Question 2....................................................................................................................................2
Question 3....................................................................................................................................3
Part B...............................................................................................................................................5
Question 1....................................................................................................................................5
Question 2....................................................................................................................................5
Question 3....................................................................................................................................5
Question 4....................................................................................................................................6
Part C...............................................................................................................................................7
Part D...............................................................................................................................................9
Part E.............................................................................................................................................10
References......................................................................................................................................11

ACCOUNTING2
Part A
Question 1
The goodwill is well tested for an impairment basis at unit level of
report by the company that is (operating segment or one level below the
operating segment) for an annual consideration that would be from (May 1
for us) and the same can also be in the form of annual tests if an event does
well occurs or the level of circumstances change that would be more likely
seen for reducing the fair value of a reporting unit that is well below its
carrying value.
Intangible Assets
The intangible assets of the Microsoft’s Company are well subject to
amortization and are well amortized by applying the straight-line method
over their useful estimated period of benefit that well ranges from a period of
one year to 20 years. The Microsoft Company well evaluates the
recoverability for the intangible assets that periodically takes into account
various events or circumstances that may warrant revised estimates of
useful lives or that indicate the asset may be impaired.
In Microsoft Corp., balance sheet:
US$ in millions Jun 30,2019 Jun 30,2018
Goodwill 42,026 35,683
Intangible Assets 7,750 8,053

ACCOUNTING3
Question 2
The management of the Microsoft Corporation records the figures of Goodwill and other
intangible assets in the Balance sheet which depicts the financial position of the business.
Goodwill and other intangible asset for the business form part of the non-current assets of the
business (Microsoft.com. 2020). The figures which are shown in the financial statements of 2018
and 2019 are appropriately shown in the table below:
Balance Sheet Extracts
US$ in millions Jun 30,2019 Jun 30,2018
Goodwill 42,026 35,683
Intangible Assets 7,750 8,053
The value of goodwill shows a rise from previous year estimate and the other intangible assets
depicts a fall in their respective values. The value of goodwill and other intangible assets are
shown after charging amortization and impairment for the assets.
The impairment which was reported by the business of Microsoft is reflected in the profit and
loss statement for the period. The annual report of the company shows that no impairments are
charged on other intangible assets by the business during the periods of 2018 and 2019. In the
case of goodwill impairments, accumulated goodwill impairment was $11.3 billion considering
the period of 2018 and 2019. The amount is properly shown in the notes section of the annual
reports and proper disclosures and treatments are also shown properly.