Explain how the above expenditure should be treated

Assignment Help Accounting Basics
Reference no: EM132987907

Question - Doge Ltd is developing a new production process. During 2020, expenditure incurred was $100,000, of which $90,000 was incurred before 1 December 2020 and $10,000 between 1 December 2020 and 31 December 2020. Doge Ltd can demonstrate that, at 1 December 2020, the production process met the criteria for recognition as an intangible asset. The recoverable amount of the know-how embodied in the process is estimated to be $50,000. Explain how the above expenditure should be treated in accordance with IAS 38 / AASB 138 Intangible Assets.

Reference no: EM132987907

Questions Cloud

Identify one type of training and one assessment tool : Identify one type of training and one assessment tool for each PA that could be used to identify training success. Identify three different types of PAs.
What is the additional cash flow in year three : The firm's marginal federal plus state tax rate is 40 percent. What is the additional (non-operating) cash flow in Year 3
Make a balanced scorecard for the financial : Make a balanced scorecard for the financial, customer, business, and learning aspects of the project and insert it onto the discussion board.
Good strategic decisions for long term life of company : How to manage their finances and business as well as make good strategic decisions for the long term life of the company.
Explain how the above expenditure should be treated : The recoverable amount of the know-how embodied in the process is estimated to be $50,000. Explain how the above expenditure should be treated
Develop dynamic website using asp.net data : Develop, test and maintain a dynamic Internet application for business using an integrated suite of software tools - Introduction and background
Create a balanced scorecard for the financial : Create a balanced scorecard for the financial, customer, business, and learning aspects of the project and insert it onto the discussion board.
Does not fully appreciate its leadership role : Cannot make sense of classical versus autonomist leadership or traditional versus evolved leadership theory. Does not fully appreciate its leadership role
What is the new breakeven in dollars : How many units, of each product, do you need to produce in order to make a profit of $500. Provide support. What is the new breakeven in dollars

Reviews

Write a Review

Accounting Basics Questions & Answers

  How the departments should be structured for reporting

Explain how the departments should be structured for reporting in accordance with the Uniform System Of Accounts For Lodging Industry.

  Calculate the amount of her failure-to-pay penalty

If Linda pays the taxes exactly 3 months late, calculate the amount of her failure-to-pay penalty. (Use two decimals places)

  Abraham inc a new jersey corporation operates 57 bakeries

abraham inc. a new jersey corporation operates 57 bakeries throughout the northeastern section of the united states. in

  Prepare all necessary adjusting journal entries

prepare all necessary adjusting journal entries for the year ended Dec

  Calculate the sale price after markdown

An item that cost Rs. 2300 was marked up 38 % of the selling price. After some time the item is markdown 30 %. Calculate the sale price after markdown.

  What will be the payback period

If company can establish a steady customer base before production starts and the cash inflows will be $14,530 per year for years 1 - 15, what the payback period

  Prepare operating activities section of statement of cf

Rasheed Company reports net income of $390,000 for the year ended December 31, 2011. It also reports $70,000 depreciation expense and a $10,000 gain.

  Problem on accrued wages payable

During July, wage expense of $25,000 was reported on the income statement. If wages payable at July 1st was $2,000, and wages of $20,000 were paid during July, how much was accrued wages payable on July 31st?

  Plot actual cost over time against the upper and lower limit

Plot the actual costs over time against the upper and lower limits. Comment on whether or not there is a need to investigate any of the variances.

  Explain at least five non-financial items

Explain at leastfive non-financial items (e.g., culture, language, etc.), which may impact the perceived desirability of each location.

  What is the initial cost of the machine

Acquisition cost; machine - Beaverton Lumber purchased a milling machine for $50,000. What is the initial cost of the machine

  Calculate the depreciation for the first year

Sanders Construction Co. specializes in building replicas of historic houses. Calculate the depreciation for the first year using the straight-line method

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd