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Assignment on AASB 138 - Australian Accounting Standards Board

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Added on  2021-02-20

Assignment on AASB 138 - Australian Accounting Standards Board

   Added on 2021-02-20

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Assignment on AASB 138 - Australian Accounting Standards Board_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
Assignment on AASB 138 - Australian Accounting Standards Board_2
INTRODUCTIONIntangible assets are the assets that cannot be touched or seen and do not have physicalexistence but have important valuation in company. Intangible assets are goodwill, intellectualproperty, brand recognition patents, trademarks and copyrights. There are two categories ofintangible assets limited life intangible assets that cover copyrights, patents and goodwill andother is unlimited life intangible asset like trademarks. This report will cover the ideas ofaccounting about the intangible assets. It will reveal how West Ltd will be accounting on theproposals using relevant accounting standards. It will also include how companies are affectedby environmental issues.AASB 138AASB 138 was formed using standard processes which were outlined previously. It definesintangibles as non monetary identifiable assets that do not have physical substance. AASB 138was brought for prescribing accounting treatment of intangibles assets which are not dealt in anyother standard (Howieson, 2017) . This standard only includes intangibles which are not dealtpreviously in any other standard. Accounting standard can be seen as normative theory exampleas it prescribes what it is to be done rather than what can be done. For recognition in financialstatements of company they must meet specified criteria. Criteria states that asset is identifiable,enterprise is having control over assets, future economic benefits will flow to company.Provisions of AASB 138 are given below:Paragraph 9 Para 9 of AASB defines intangible assets. As per the definition stated in this para anintangible asset includes maintenance, acquisition, development and enhancement oftechnological and scientific knowledge in category that are specifically classified as intangibleassets.Para 18In this paragraph includes the requirement of intangible assets are fulfilling therecognition criteria of intangible assets which are approved by definition given for intangibleassets that are to be included in financial statements of company.Para 211
Assignment on AASB 138 - Australian Accounting Standards Board_3

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