Accounting for Contingent Liabilities and Intangible Assets

FINANCIAL ACCOUNTING

Executive Summary
Financial reporting refers to disclosure of financial results as well as related information to the
users of financial statements relating to operations of an organization over a specific period of
time. The present report provides disclosure requirement relating to contingent liabilities as well
as an intangible asset. It has been accessed that an organization does not require to recognize a
contingent liability. Further, in the case of intangible asset, an organization require to provide
disclosure in accordance with provision specified in AASB 138.

Table of Contents
Answer 1..........................................................................................................................................4
A: Accounting for contingent liabilities with reference to AASB 137.......................................4
B: Accounting Implication of lawsuit..........................................................................................4
Answer 2..........................................................................................................................................4
A: Accounting treatment for internally generated intangible assets and impairment of
intangible assets as per AASB 138/ IAS 138..............................................................................4
B: Difference between accounting of intangible assets internally generated and acquired
intangible assets...........................................................................................................................5
C: Reason behind reluctant to press for changes for AASB 138/ IAS 138 to require more
recognition for internally generated intangible assets.................................................................5
References........................................................................................................................................6