Class of assets could be reported in accordance

Reference no: EM1375485

IP ltd reports the subsequent intangible assets:

Patents at directors valuation 160 million
less accumulated amortisation (40 million)
120 million

Trademarks at cost 15 million
Goodwill at cost 50Million
less accumulated amortisation (10 million)
40 million
Brand name 100 million
Licence at cost 10 million
less accumulated amortisation (1 million)
9 million

Patents were acquired at cost of 80 million and were revalued soon afterwards. They have a calculated life of 16 years, of which 12 years remain.
The trademark will be renewed indefinitely, subject to continued use. The cost indicates registration fees, which were initially expensed but recognized five years later after the trademark had started to become recognized by consumers.

Goodwill has been purchased and amortized on the straight line basis.
The brand name is stated at fair value and is internally prepared the license has a 10 year life of which 9 years remain. The license will be traded in an active market and has a fair value of 17 million.

QUESTION.

A) State how wvwry asset or class of assets could be reported in accordance with AASB 138

B) State carrying value and whether every asset/ asset class should be amortised. Identify any choice of method permitted for IP Ltd.

Reference no: EM1375485

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