Accounting for Intangible Assets: YBR Holdings Video Analysis

This presentation analyzes the accounting treatment of intangible assets for Yellow Brick Holdings Ltd. (YBR), a financial services company. The presentation covers the initial recognition, measurement, and subsequent accounting for intangible assets like goodwill, brand recognition, and intellectual property, as per AASB 138. The video examines how YBR calculates and accounts for these assets, including amortization of finite-life assets and impairment testing for indefinite-life assets. The analysis includes a comparison of intangible asset values over time and the reasons for any changes. The presentation also addresses the accounting for goodwill, customer relations, and brand assets, and the impact of these accounting practices on the company's financial statements. The presentation concludes with references to relevant financial reports and accounting standards.

CORPORATE
ACCOUNTING

• The company which has been undertaken for
analyzing the accounting treatment of the
intangible assets is Yellow Brick Holding Ltd.
• This company helps in providing financial
services advice along with the various financial
services.
• Home loans, investment strategies, self-
managed superannuation fund establishment
are some of the financial facilities which are
being provided by this company.
• YBR operates worldwide with the help of its
various branch which is in Australian Capital
Territory, New South Wales, and Western
YELLOW BRICK HOLDING
LTD.

• An intangible asset is an asset which does not
have a physical appearance in nature. It can be
said as the opposition of the physical assets for
example machinery and building.
• An intangible asset is somehow hard to
evaluate. Calculating the intangible value can
be referred to as valuing the company
intangible assets. This calculation helps in
allocating the fixed value of the intangible
assets which cannot be changed as per the
company's market value.
• Goodwill, brand recognition, and intellectual
INTANGIBLE ASSETS

• The intangible assets of the company which is
purchased as a part of the business are calculated
at the fair value at the time of the purchase.
• In starting intangible assets are identified at the
cost.
• Indefinite life intangible assets are not written off
and they have calculated at the cost less any
impairment. Whereas,
• Finite life intangible asset is calculated at the cost
less amortization & any impairment.
INTANGIBLE ASSETS OF YBR

• The losses and gain identified in the profit and
loss comes from the de-recognized of intangible
assets are calculated as the differentiation
among the net disposal proceeds & the cost of
the intangible assets.
• According to the AASB 136, impairment of
Assets need for the motive of the impairment
calculating the goodwill purchased in the YBR
distributed to the Group cash-generating
segments.
• When any entity is purchased in the
organization, then the identifiable net assets
are purchased at the fair value. Goodwill is not
amortised.

• The brand assets are taken at the cost less
impairment and amortization value.
• The straight-line basis is used in the case of
deferred and amortized of the software
• Cost in relation to the other intangibles is
amortized on the basis of the straight line for
the time of the excepted life.
• Costs in relation to other minor intangibles,
comprising mostly user interface platform,
software and wealth book acquisitions, are
amortized on a straight-line basis over the
period of their expected benefit.
VALUATION

COMPARISON

 There is a decrease in the amount of
intangible assets from the year 2017 to
2018 because of the following reasons:
• Sale of the assets which are of intangible
nature.
• Depreciation on the assets which are of
intangible nature.
• Any type of loss bear by the company
(Yellow Brick Road, 2018).
REASONS

Bloomberg, 2019. Yellow Brick Road Holdings Ltd.
[Online]
Available at:
https://www.bloomberg.com/profile/company/YBR:AU
[Accessed 1 august 2019].
Yellow Brick Road, 2018. Annual Report. [Online]
Available at:
http://www.ybr.com.au/ybr/media/investor-centre/ann
ualreport18.pdf
[Accessed 1 august 2019].
BIBLIOGRAPHY