Accounting for Intangible Assets in Financial Statements

FINANCIAL
ACCOUNTING

IAS 38
Executive Summary
The report is primarily based on the organization name Technology Enterprises Ltd. The
company has engagement in R&D and completed the project successfully. In tune to this the
company applied for patent. The report initiates with the introduction and followed by
accounting for the project in the financial statements. The explanation and interpretation is
done in terms of AASB 138 which stated that the assets need to be valued at their cost of
acquisition. Further, the crucial costs need to be added to the specific capital assets. Further,
relevant action is studied in the case. In the given case, it comes to the forefront hat company
is capable to value the intangible assets at the specific FV. At the end, a response to the CEO
is drafted where understanding of AASB 138 together with efficient market hypothesis is
dealt with.
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IAS 38
Contents
Introduction............................................................................................................... 3
Accounting for the project in the financial statements...........................................................3
Adequate action in such a situation.................................................................................. 4
Response to CEO........................................................................................................ 5
Conclusion................................................................................................................ 8
References................................................................................................................ 9
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