Reporting of Intangible Assets in Financial Statements

Accounting
Assignment

By student name
Professor
University
Date: 31st March 2019.
Page 1

Executive Summary
The following assignment deals with reporting of intangible assets in the financial statements of
a company and is based on the provisions of the AASB 138. Intangible assets are those that have
no physical existence but from which the company can draw future economic benefit. In this
assignment the intangible asset includes the Research and Development program that was
undertaken by the management of the company and is based on how the same should be reported
in the financial statements of the company. It covers the various provisions of the given standard
and shows its implication in terms of the company
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Table of Contents
Executive Summary.......................................................................................................... 2
Introduction.................................................................................................................... 4
Analysis........................................................................................................................ 4
Expenses in the Research Phase.............................................................................4
Expenses in the Development Phase......................................................................5
Value of the Asset................................................................................................... 5
Disclosure Requirements......................................................................................... 5
How does adoption of AASB 138 affects the comparability of the financial
statements................................................................................................................. 6
Response to the CEO.................................................................................................. 7
Conclusion and Recommendation..............................................................................7
References................................................................................................................. 9
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