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ACCM4200 Assignment on the Financial Accounting

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Kaplan Business School Australia

   

Financial Accounting and Reporting (ACCM4200)

   

Added on  2020-05-28

ACCM4200 Assignment on the Financial Accounting

   

Kaplan Business School Australia

   

Financial Accounting and Reporting (ACCM4200)

   Added on 2020-05-28

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Running head: FINANCIAL ACCOUNTINGFinancial AccountingName of the StudentName of the UniversityAuthor Note
ACCM4200 Assignment on the Financial Accounting_1
1FINANCIAL ACCOUNTING718 Geelong Street, Melbourne, VIC 3000 Telephone 28 2 6295 7010 www.magentaandassociates.com.au16 January 2018Mr. Christopher SampsonThe managing DirectorBeachlife Ltd.Level 7, 927 William Street,Brisbane QLD 4000Dear Christopher,We would like to thank you for the quick response through the mail. We as always try to providethe best possible solutions and this time as well we would like t provide the same solutions sothat it can help you in making better decisions regarding the issues faced by your company. Wealso assure to you that the solutions that will be provided by us will be in accordance to theCorporation Act, IFRS and AASB. You might be aware of the fact that the assets that are intangible in nature are the ones thatcannot be touched. There are some examples of intangible assets as well such as patents andtrademarks of the company, methodologies of business, goodwill and the recognition of thebrand (Bond, Govendir and Wells 2016). These assets that are intangible in nature may have adefinite or an indefinite period of life within the organization. In accordance with the procedure
ACCM4200 Assignment on the Financial Accounting_2
2FINANCIAL ACCOUNTINGfor the valuation of the intangible assets such as recognition of the brand, the valuation of it isnot that easy. This requires solid and definite methodology, which will help in the valuation ofthese assets. The procedure of valuation of the intangible assets such as recognition of the brandis not easy and would require the use of a better style of methodology, which will help indetermining its valuation (Goodwin et al. 2016). Additionally, the intangible assets that aregenerated within the organization will not be recognized until it has been sold by the company.In accordance with Para 63 of IAS 38 and International Financial Reporting Standards (IFRS),the recognition of brand is the ability of the customers in identifying the brand from its artisticsymbol and the distinct logo that one can associate with the organization. This also helps inraising the expectation of the customers with respect to the quality of the product and assists thecompany in accumulating the behaviours and the attributes, which can help in the campaigningof the product as well. The assets that are intangible in nature such as the brand cannot be dealtwith in the regular consumer market, as there are different issues that may be generated due tothe valuation of these brands (Picker et al. 2016). It can be identified on a further manner that theamount that is paid, which is the brand value are lower than the actual worth of the companywhen compared to it. An example of this would be the issue that has been stated by the directorsas $800,000 has to be recognized by ‘Sun n Surf Shirts’ during the selling of the brand, whichcan be realized at an amount of $800,000.The recognition of the assets that has been generated internally such as the brand of thecompany, there are three options that has to be considered, which will help in the recognition ofthe brand in the financial statement and will be in accordance with the integrity, objectivity,efficiencies and effectiveness. In accordance with the options that are present regarding theacquiring of the assets through external manner, it needs to be recorded under the goodwill
ACCM4200 Assignment on the Financial Accounting_3

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