What are the practical dif iculties in measuring intangibles

Assignment Help Accounting Basics
Reference no: EM132783496

A company has an extensive customer base. Over many years, it has built a detailed customer list, which includes various data including demographics, contact details, purchasing history and preferences. It has spent quite a lot of resources on developing this customer list so that it can ef ectively target marking campaigns and manage customer relations. A number of businesses have approached the company to purchase their customer list and have of ered prices from $60 000 to $210 000. However, the company has decided not to sell at this stage.

Problem (a) Explain whether this customer list would meet the definition and recognition criteria of an asset, applying the principles in 2018 Conceptual Framework.

Problem (b) Requirements in accounting standards currently prohibit the recognition of internally generated intangibles such as customer lists and only allow cost basis to be used for any intangible assets recognised. Do you think these restrictions are justified? What are the practical dif iculties in measuring intangibles?

Reference no: EM132783496

Questions Cloud

Calculate the total direct material cost variance : At an hourly rate of $13.00 per hour. 8,500 units required 19,000 hours at total cost of $246,050. Calculate the total direct material cost variance.
Accuracy of the accounting of assets and operations : Why do organizations, government included, not capitalize all assets that last for more than one budgeting period, despite knowing that doing
Calculate the effective duration : Portfolio = $1,000,000, 90% in equity earning 12%, 40% in Fixed Income = $125,000 earning 2.5% [ note 90% + 40% > 100%, there is a margin here
Provide adjusting journal entries pertaining to intangible : Provide any Adjusting Journal Entries pertaining to Intangible Assets for the year-ended December 31, 2020. Show all relevant calculations.
What are the practical dif iculties in measuring intangibles : Cost basis to be used for any intangible assets recognised. Do you think these restrictions are justified? What are the practical dif iculties in measuring
Determine the weighted average unit cost : Determine (a) the weighted average unit cost after the July 23 purchase, (b) the cost of the merchandise sold on July 26, and (c) the inventory on July 31
Restructure of loan versus extension of loan : Based on the above case, discuss the following options that Spandex Corporation has to survive a financial crisis.
Calculate your monthly payments for loan : You negotiate with the bank to finance your purchase over 25 years making monthly payments. The bank is offering a 25-year amortized mortgage loan at 5.25 perce
How many customers will each target store have to convert : How many customers will each Target store have to convert from the low-loyalty category to high-loyalty category to break even on the proposed

Reviews

Write a Review

Accounting Basics Questions & Answers

  Wilkins inc has two types of handbags standard and custom

wilkins inc. has two types of handbags standard and custom. the controller has decided to use a plantwide overhead rate

  What is the amount of the loss on impairment

What is the amount of the loss on impairment that Beehive should recognize at June 30, 2006?

  Prepare a brief analysis of the budget

Prepare a brief analysis of the budget. What would you suggest to increase the cash available before new financing?

  Prepare a memo to plugs controller detailing the elimination

Prepare a memo to Plug's controller detailing the elimination procedures that should be followed in transferring equipment between subsidiary and parent.

  Prepare Pearl journal entries for January

The market price (fair value) of the stock is $63 per share on the date of grant. The period of benefit is 2 years. Prepare Pearl journal entries for January

  During 2012 cotte manufacturing expected job no 59 to cost

during 2012 cotte manufacturing expected job no. 59 to cost 600000 of overhead 1000000 of materials and 400000 in

  Prepare journal entries for the given transactions

Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions

  Product versus period costs-fixed versus variable costs

Write a memo to your partner covering all of the following: Write a description of the difference between product and period costs and examples of each. Explain how the financial results of a business would be reported differently if costs were not..

  What was the amount of depreciation and amortization expense

What was the amount of depreciation and amortization expense for each of the three years 2012-2014? (Hint: Use the statement of cash flows).

  Calculate the fvina acquired

Calculate the FVINA (fair value of net assets) acquired and determine the amount of goodwill on acquisition. Cash of $1,000,000, with ¼ to be paid on 1 January

  What is the amount of joint cost allocated to product c

A joint process produces three products at the split-off point. Product A can be sold without further processing at the split- olf point. Products B and C.

  Caterpillar is the largest industry who makes

caterpillar is the largest industry who makes constructionequipment. company is interesting to build a new crain which

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