Yellow Brick Holdings ltd. Intangible assets policy and disclosure

Corporate Accounting

Contents
Corporate Accounting.....................................................................................................................1
Introduction......................................................................................................................................3
1. Analysis of the Yellow brick holding ltd. Intangible asset policy and how they have made
their disclosure in the interim financial year statements.............................................................4
2. Evaluation of the Yellow Brick holdings ltd. compliance with the AASB 138 Intangible
assets and various definition, recognition and measurement and disclosure that are done in
their financial report....................................................................................................................6
3. The discussion of whether continued impairment of intangible assets may in future impact
on the company’s compliance with debt covenants....................................................................8
4. Conclusion as to whether, and if so, how Yellow Brick Holdings Ltd’s accounting for
intangible assets has influenced your Buy/Sell/Hold decision....................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Introduction
The term intangible asset is defined as the identifiable non-monetary asset which does not have
any physical substance so as to touch or feel. Hence this is considered to be an intangible asset as
these are tangible and cannot be touched or feel by the humans. This is seen that the intangible
assets are considered made by the entities by themselves as some of the examples of the
intangible assets include patents, copyrights, goodwill, customer relationship,software etc.
These are hence considered to be the asset which is shown in the balance sheet on the assets side
but the owner does not have the physical view of the asset with them (André, Dionysiou and
Tsalavoutas, 2018). This report is based on Yellow Brick Holdings Ltd. Which Australian
company and is holding a various intangible asset with them. The company had a problem in
compliance with the AASB 138 hence it leads to the generation of the financial report later. So in
this video, we will be providing how the company accounted for the intangible assets and how
they have disclosed their interim financial statements. Also, evaluation and discussion on the
compliance with the AASB 138 would be done by the company. The discussion than would be
moved to whether the company continued impairment with the intangible asset may in future
impact the company’s compliance with the debt covenants. At last, the conclusion would be
provided where this would be analysed how the accounting for intangible assets has influenced
the buy or sell decision of the shareholders.