Accounting Treatment of Brands, Goodwill and Restructuring Costs

ACCOUNTING 1
ACCOUNTING

ACCOUNTING 2
Executive summary:
This assignment report aims at discussing the accounting treatment of brands with regard to
the rules and the regulations as have been laid down under IAS 138 and also, discusses and
throws light on the difficulties that are faced by the standard setters when it comes to
allowing the formulas for the purposes of calculating the brands and on the statement of the
financial positon. Further, it throws light on the restructuring provisions as have been laid
down under AASB 137.

ACCOUNTING 3
Contents
Accounting treatment of brands:................................................................................................4
Accounting treatment of goodwill:............................................................................................5
Recognition:...........................................................................................................................5
Flawed investment strategy:...................................................................................................5
Accounting treatment of restructuring costs:.............................................................................5
Accounting:............................................................................................................................5
Restructuring provision:.........................................................................................................6
Closing down of division:......................................................................................................6
References:.................................................................................................................................7