Australian Accounting Standards Analysis

Running head: AUSTRALIAN ACCOUNTING STANDARDS ANALYSIS
Australian Accounting Standards Analysis
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AUSTRALIAN ACCOUNTING STANDARDS ANALYSIS1
Executive Summary
The report discusses on the accounting criteria that is set up by the Australian Accounting
Board regarding the principles of intangible assets. The recognition criteria and the
measurement of the intangible assets are stated. The report is specifically focussed towards
the guidelines set up for the recognition and measurement of brands. The next section of the
report talks about the limitations that occur due to writing-off of the goodwill by the firms.
Further the report moves on to discuss about the provisions that had been laid down regarding
the process of restructuring in business. Under this heading, other concepts are also discussed
such as provisions due to acquisition activities. A specific case is elaborated in this context
which talks about acquisition activity conducted in an organisation. In this respect, suitable
provisions are highlighted regarding this acquisition activity of the acquirer.

AUSTRALIAN ACCOUNTING STANDARDS ANALYSIS2
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Response to question 1...............................................................................................................2
Accounting for brands under AASB 138...................................................................................2
Response to question 2...............................................................................................................2
Circumstances under which goodwill is recognised and subsequent written-off subsequently 2
Reasons why a significant goodwill write-off may signal a “flawed investment strategy”.......3
Response to question 3...............................................................................................................3
Accounting for restructuring provisions with reference to AASB 137......................................3
Creation of a provision for restructuring by Tooth Ltd. as a part of its acquisition accounting
entries.........................................................................................................................................3
Changes due to amendments in the acquisition activity of Tooth Ltd.......................................4
Conclusion..................................................................................................................................4
References..................................................................................................................................5