Significance of Intangible Assets Valuation in Financial Accounting

Running head: FINANCIAL ACCOUNTING
Financial Accounting
Name of the Student:
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1FINANCIAL ACCOUNTING
Executive Summary:
The study evaluates the significance of intangible assets valuation, which is depicted in "AASB
138/IAS 38", as it allows the organization to determine the actual and relevant valuation of their
financial and non-financial assets. From the relevant evaluation, it could be identified that
Technology Limited could adequately utilize the "AASB 138/IAS 38"standard to recognize their
overall expenses and intangible assets in the annual report. The standard also indicated about the
treatment that is required for transferring the research and development cost in the intangible
assets section. In the current case, the “Technology Enterprise Limited” has mainly accounted
for different levels of expenses, which has been conducted by the organization in regards to the
intangible assets.

2FINANCIAL ACCOUNTING
Table of Contents
Introduction:....................................................................................................................................3
1. Analysing the overall financial statements of the organisation for the year ended 30 June 2018
by using the AASB 138/IAS 38:.....................................................................................................3
2. Mentioning about the restrictions imposed by AASB 138/IAS 38 to reduce the comparability
of financial statements:....................................................................................................................5
3. Providing a relevant explanation about the AASB 38/IAS 38 and the efficient market
hypothesis:.......................................................................................................................................6
Recommendation and Conclusion:..................................................................................................6
References and Bibliography:..........................................................................................................8