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Intangible Assets Snow Protek Limited

   

Added on  2020-06-04

4 Pages1047 Words33 Views
INTANGIBLE ASSETS

INTRODUCTIONAn asset in the company which cannot be measured through monetary terms and valuesalong with not physical in nature, is considered as an intangible asset. The study reflects aboutAASB 138 which relies from intangible asset's treatment and on the basis of this, somesuggestions are given to the manager of Snow Protek Limited company. Apart from this, itconcerns with basically two aspects of intangible assets like brand value as well as research anddevelopment asset at cost. MAIN BODYIn the corporate, intangible assets include various intellectual rights like patent,copyright, trademarks etc. and brand value or goodwill etc. In order to make accountingtreatments of the intangible assets in balance sheet within workplace, Australian AccountingStandards Board (AASB) 138 is taken into account by the management. As per the presentscenario, managing director makes expenses on advertising and marketing worth of $300,000.On the other hand side, purchased intangible asset amortises in the next accounting period. Inaddition to this, the MD wishes that level of brand valuation will be amortised or enhanced inupcoming year. According to the cost model of AASB 138, any kind of costs associated with theintangible asset shall be carried out in the next year (AASB 138: Intangible Assets, 2007). Due tothis law it has been advised to the MD of Snow Portek Limited that, brand value adjusted with anincreasing amount due to making marketing expenses. As per the revaluation model of intangibleassets, the amount of brand value of selected asset must be carried out in the balance sheet on thebasis of revalued amount. After completing recognition or any kind of amortisation of theintangible asset, whatever amount comes into consideration that would be treated in the books offinancial position. Moreover, fair value of the asset at the time of revaluation must be determinedafter considering base to the active or present market situation. On the basis of such above both the models like cost and revaluation of the intangibleasset, it can be advised to the MD of Snow Portek Limited company that, brand value musttreated after increasing at the end of year. An amount in which depreciation and amortisationvalues are subtracted or included respectively is known as the carrying amount. In the presentstudy, total carrying amount and brand value of Snow Portek Limited is worth of $8800001

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