Company Accounting

Running head: COMPANY ACCOUNTING
Company accounting
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1COMPANY ACCOUNTING
Table of Contents
Answer (a)..................................................................................................................................2
Answer (b)..................................................................................................................................2
Answer (c)..................................................................................................................................4
Reference....................................................................................................................................5

2COMPANY ACCOUNTING
Answer (a)
Intangible asset is the asset that does not have any physical substance. Examples for
intangible assets are patent, goodwill, copyrights, intellectual property and software. An
intangible asset may be segregated into the one that has definite life value and the one that
gas indefinite life value. For instance, brand value is considered to have indefinite life value
as it remains with the entity for its lifetime. On the contrary, legal agreement on patent can be
considered as the intangible asset with definite life value as legal agreement on patent is
made for definite time periods say 10 years or 20 years (Crema & Nosella, 2014).
Total assets of Telstra group for the year ended 30th June 2018 amounted to $ 42,870
million, out of which intangible assets accounted for $ 9180 million.
Amount in million
Total asset $ 42,870.00
Intangible assets $ 9,180.00
% of intangible asset 21.41%
Hence, 21.41% of total assets are made up of intangible assets. Intangible assets of the
company include goodwill, licences, software assets, deferred expenditure and other
intangible assets (Telstra.com.au, 2019).
Answer (b)
During the year, Telstra group charged $ 568 million as impairment losses in its
financial statement. Impairment losses provided for the following accounts –
 Intangible assets –
 Goodwill - $ 261 million
 Software assets - $ 31 million