Financial Accounting: Accounting for Intangible Assets in Technology Enterprise Ltd

Running head: Financial Accounting
Financial Accounting
Name of the Student
Name of the University
Author Note

1Financial Accounting
Executive Summary
The report include about the financial reporting in the company. It also contains details of the
accounting standard and how it help the company to do the accounting of the asset. It
includes about an company name Technology Enterprise Ltd. As the company have done
research upon the intangible asset so the report show how the company have recorded it in
the financial statement and also how they should treat the expenses which is been carried on
the intangible asset.

2Financial Accounting
Table of Contents
Introduction................................................................................................................................3
Reduction of Comparability of Financial statement..................................................................7
Understanding of AASB 138/IAS 38.........................................................................................8
Conclusion..................................................................................................................................9
Reference..................................................................................................................................10

3Financial Accounting
Introduction
The company have to do all the transaction of the business as per the accounting
standard and policy so the process of doing it is been termed as Financial Accounting. This
help the company to follow all the rules and regulation in regards of the company financial
statement and also help them to give information to the financial user of the company
(Aasb.gov.au. 2019). As if the company will maintain all the accounting standard than it will
be easy for the financial user to compare it with the company so that it will able to judge the
performance of the company easily and help them to take proper decision of the investment
in regards with the company. The case study which is been given it can be seen that the
company Technology Enterprise Ltd have to do some changes in the intangible asset so
before doing any change in the intangible asset the company should check the accounting
standard of the intangible asset and do the accounting of the same as per the details given in
the standard (Arrighetti, Landini and Lasagni2015).It can be seen that the company have
spend some amount upon the research and development of the intangible asset so they should
also take into consideration before doing the accounting entry of the intangible asset. The
standards which contain the details of the intangible asset are AASB 138 / IAS 38. This
standard has all the details in regard of the intangible asset and how the company should
value the same in the financial statement of the company. It should take in to consideration
also the costs spend upon the research and development of the intangible asset. As the
company is been situated in Australia so they should follow Australian Accounting Standard
so they should follow AASB 138 for the accounting of intangible asset. In the given case
study it can be seen that the company Technology Enterprise Ltd had done the research upon
the intangible asset so that it can able to do some modification upon the battery (Bianchi
2017). The report related to how the company should account the cost of the intangible asset
in the company financial statement and also how they should treat the expense in the