FINANCIAL ACCOUNTING FINANCIAL ACCOUNTING 2 Financial Accounting

Running head: FINANCIAL ACCOUNTING
Financial Accounting
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1FINANCIAL ACCOUNTING
Executive Summary:
The current report has dealt specifically with three such standards that constitute of AASB
136, AASB 137 and AASB 138. It has been found that contingent liabilities are needed to be
disclosed as notes to the financial statements unless there is remote chance of outflow of
economic resources. The internally generated intangible assets need not be recognised in the
financial statements except under certain circumstances. Finally, it has been identified that
there are certain loopholes in AASB 138/IAS 28 that include inflation of future profits, lack
of relevance and others.

2FINANCIAL ACCOUNTING
Table of Contents
Introduction:...............................................................................................................................3
Question 1:.................................................................................................................................3
A) Accounting treatment for contingent liabilities with reference to AASB 137:................3
B) Ways through which Delta Limited would disclose the accounting implications of the
lawsuit in the financial statements:........................................................................................3
Question 2:.................................................................................................................................4
A) Accounting treatment for internally generated intangible assets and impairment of
intangible assets:....................................................................................................................4
B) Differences between accounting for internally generated intangible assets and acquired
intangible assets:....................................................................................................................4
C) Reasons behind the reluctance of the companies in pressing for changes in AASB
138/IAS 38:............................................................................................................................4
Conclusion:................................................................................................................................5
References:.................................................................................................................................6