Accounting principles - intangible assets, Auditing

Assignment Help:

Accounting Principles - Intangible Assets

IFRS 3 prescribes the financial reporting through an entity whenever it undertakes a business combination. A business combination is the together bringing of part entities or businesses in one reporting entity.

Combinations of all business are accounted for through applying the purchase technique, such views combination of the business from the perspective of the acquirer. The acquirer is the combining entity which obtains control of the other businesses or combining entities acquire.

The acquirer procedures the cost of combination of a business as the combined of:

  1. The fair values, of assets given, at the date of exchange liabilities, incurred or assumed equity instruments issued through the acquirer, in exchange for control of the acquire;
  2. Any costs directly attributable to combination of the business.

Any adjustment to the cost of the combination, which is contingent on future events, is included in the combination of the at the acquisition date whether the adjustment is possible and can be measured reliably.

The acquirer assigns the cost of the business combination through recognizing the acquirer's identifiable assets and contingent liabilities at their fair value on the date of acquisition, except for non-current assets such are classified as held for sale in accordance along with IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations. That assets held for sale are known at fair value less costs to sell.

Kindness, to be the excess of the cost over the acquirer's interest in the net fair value of the identifiable liabilities, assets and contingent liabilities, is acknowledged as an asset.

Kindness is subsequently carried on cost less various accumulated impairment losses in accordance along with IAS 36 Impairment of Assets. Whether the acquirer's interest in the total fair value of the identifiable liabilities, assets and contingent liabilities exceeds the cost of the combination, the acquirer:

  1. Reassesses the measurement and recognition of the acquirer's identifiable liabilities, assets and contingent liabilities and the measurement of the cost of the combination;
  2. Distinguishes immediately in loss or profit any excess remaining behind that reassessment.

IFRS 3 identified the accounting treatment:

  1. For business combinations such are achieved in stages;
  2. Whether fair values can only be determined provisionally in the duration of acquisition;
  3. Whether deferred tax assets are found after the acquisition for the accounting is complete; and
  4. For previously found goodwill, opposite goodwill and intangible assets.

Related Discussions:- Accounting principles - intangible assets

Verification, procedures for verifying a fixed assets

procedures for verifying a fixed assets

Recording the audit - isa 230, Recording the Audit - ISA 230 Purpose...

Recording the Audit - ISA 230 Purpose of working papers It is necessary which all audit work is documented - the working papers are the tangible evidence of the work co

Disclosure requirements - investment, Disclosure Requirements - Investment ...

Disclosure Requirements - Investment In common terms, the following items have to be disclosed in the concern to all investments: (a) The accounting policies about:-

Standardization of working papers - auditing, Standardization of Working Pa...

Standardization of Working Papers - Auditing The ICPAK guideline states that the needs of standardized working papers may improve the effectiveness along with that they are re

Transferee liability, Transferee Liability - A person may be held LIABLE fo...

Transferee Liability - A person may be held LIABLE for another taxpayer's delinquent taxes if: 1. The transferee received assets of the transferor-taxpayer; and 2. The transf

The concept of audit evidence, The Concept of Audit Evidence Auditing i...

The Concept of Audit Evidence Auditing is an evidence gathering exercise. It is an exercise carried out to confirm the assertions made by the management in carrying out the man

Accounting principles and policies, Accounting Principles and Policies ...

Accounting Principles and Policies The user of the accounts expects that the accounting principles and policies used will be in conformity with IAS, be generally accepted, be

Detail work on stocks - audit of current assets, Detail work on stocks - Au...

Detail work on stocks - Audit of Current Assets Detail work on stocks is imperative in an audit, since there are other review tests that are equally important and these includ

Skills and objectivity of expert, Skills and Objectivity of Expert T...

Skills and Objectivity of Expert The skills and competence of the expe rt Whether planning to require the work of an expert, so the auditor should assess the professiona

Write Your Message!

Captcha
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