| View all ACCA F3 / FIA FFA lectures >> | This ACCA F3 / FIA FFA lecture is based on OpenTuition course notes, view or download here>> |
Intangible Assets: Goodwill, Research and Development
Comments
Leave a Comment
You must be logged in to post a comment.
the lecturer says when you are able to measure costs.What type of costs does he mean?
@mikelittle is there any lecture for amortisation?
open tuition…. u have been very great full to me in all my papers i have had till now… thumbs way way way uppp…..
@judocallin, GOOD!
Very easy to understand and follow, the whole lecture. Thank you so much.
The final disposal value of the microscope decreases if you depreciate over a longer period.
E.g Assume after 5 years it is worth nothing. Depreciation charge is (500 – 0) / 5 = £100 p.a.
Now consider that it is worth 300 after 2 years. Depreciation charge is (500 – 300) / 2 = £100 p.a.
So essentially, (And certainly for the purpose of this exam), it makes no difference.
However, you should generally stick with working out depreciation based on an assets useful life to the company. If the company only intends to keep it for 2 years, it should depreciate it over 2 years.
nice lectures really enjoyed
If we have expenses for development not just wages, but also for example: fees to consultant, fees for electricity, fees for paper and pencils – should we capitalise it and show in balance sheet?
@sangria9, They should be capitalize when they are directly attributable costs necessary to create,produce and prepare the asset to be capable of operating it in manner intended by management.
@judocallin, I love the idea of capitalising paper and pencils. But why stop there? What about the paper clips and staples?
is there any lecture for amortisation?
Question:
For example we buy a tangible asset (e.g., microscope) for development stage and we know that we need this for 2 years (during this time we expect to develop new product), but we also know, that useful life of this tangible asset is 5 years. What life period should we use in our calculations of depreciation: 2 years or 5 years?
@sangria9, under the accrual concept, it should be 2 years.
@sangria9, it must be for 5 years how it can be for 2 years????????
@sangria9, if you plan to dispose the microscope after 2 years, then 2 years, but if not depreciate it for 5 years. depreciation may be due to passage of time(or nonuse).
what does this mean when i am trying to play the lecture Server not found: rtmpt://173.208.109.173:80/play
it means that for some reason that your PC can’t connect to the server where the lecture is hosted,
realod the page, and hopefully it will connect, it could be just temporary glitch
if it persists, maybe you are behind a firewall, if so, please contact your internet service provider to check this for you
thank you for your clarifications.