User Account

All Pages

What are the practical difficulties in measuring intangibles

Assignment Help Accounting Basics
Reference no: EM132716484

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 effectively target marking campaigns and manage customer relations. A number of businesses have approached the company to purchase their customer list and have offered 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 difficulties in measuring intangibles?

Reference no: EM132716484

Questions Cloud

Identify which accountants preparing financial statements : Identify four areas in which the accountants preparing financial statements must make professional judgments that will affect the content of the statements
Department of homeland security : Look at a real-world scenario and how the Department of Homeland Security (DHS) plays into it.
How wealthy and powerful create legitimacy through ideology : Why do the majority of people (who have no wealth, a lack of power, and political influence) accept this inequality? Why is not questioned or challenged enough?
Public-sector and private-sector computer investigations : There are many differences between public-sector and private-sector computer investigations. What do you see are the top three and why
What are the practical difficulties in measuring intangibles : A number of businesses have approached the company.Do you think these restrictions are justified? What are the practical difficulties in measuring intangibles?
Socializing agents in life : If you are to list in order of importance the five (5) socializing agents in your life, how would your list look like?
Determine the variable cost per gross-ton mile : The activity base used by Continental Railroad is a measure of railroad operating activity, Determine the variable cost per gross-ton mile
Describe the apticom aptitude test battery program : 1. Review the guidelines for the effective use of work samples.
Describe the key features of relevant agency agreements : Describe the key document that financial services providers must give to clients so as to meet disclosure of capacity requirements and maintain compliance.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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