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Did you check the question on brands for adams group and laurel group so why in laurel group they recognised as indefinite useful life
Am confused because two different question on risk for brand that is indefinite or finite useful life how did they identify.
QN )ADAMS GROUP (june 2014) kaplan qn 14
Scenerio
The Group has a policy of non-amortisation of the Adams brand name. The brand name was
acquired many years ago and is recognised at its original cost. The previous audit firm
accepted the policy due to the strength of the brand name and the fact that the Group spends
a significant amount each year on product development and marketing aimed at supporting
the brand.During the year, the Group attracted negative publicity when an investigation by a wellknown journalist alleged that child-labour was being used by several suppliers of raw
materials to Lynott Co.Answer
The brand of $8 million is material. It is recognised in the statement of financial
position as an intangible asset which is appropriate given that the brand is a purchased
intangible asset. However, the asset is recognised at its original cost and there is risk
attached to the policy of non-amortisation of the brand.IAS 38 Intangible Assets states that an intangible asset with a finite useful life is
amortised, and an intangible asset with an indefinite useful life is not. The risk is that
the assumption that the brand has an indefinite life is not correct, and that the asset
is overstated and operating expenses understated through the lack of an annual
amortisation charge against the asset.so my question is how did they identify that there is brand doesnot have indefinite useful life?
QN 2 LAURLEY GROUP (MJ 2017 ) KAPLAN QN 10
The Group produces cosmetics and beauty products which are sold under various brand
names in more than 100 countries. Most of the brand names have been acquired with
subsidiary companiesIn April 20X5, allegations were made in the press and by customers that some ingredients
used in the Chico perfume range can cause skin irritations and more serious health problems.
As a result, the Chico products have been withdrawn from sale and a $30 million impairment
charge has been recognised in respect of the Chico brand name. Despite this issue, Group
revenues have increased by 13% and Group management is confident that no other brands
are affected.
Acquired brand names are held at cost with no amortisation being charged on the
grounds that the assets have an indefinite life. An annual impairment review is
conducted on all brand names. A $30 million impairment has been recognised in
respect of the Chico brand name as discussed above.ANSWER
The audit team will need to verify whether the $30 million impairment recognised in
relation to the Chico brand name is a full impairment of the amount recognised in
relation to that specific brand within intangible assets. Given that the branded
products have been withdrawn from sale, it should be fully written off. If any amount
remains recognised, then intangible assets and operating profit will be overstated.
The impairment charge of $30 million is highly material by reference to the threshold
and may warrant separate disclosure. There is a risk that the necessary disclosures are
not made in relation to the discontinuance and/or the impairment of assets.They didnot mention about the risk that the brand is not indefinte while they agreed as indefinite ..why ? how is this brand an indefinite useful life and not the previous adams question ?
okay thanks understood..
so now for public sector organisation which stakeholder are key players whom should be keep informed and whom should be keep satisfiedYes I was referring to that… thanks….
What if they says it’s borrowing loan but for Foreign exchange hedging so is it receipt ?
I still didn’t understand part 2 &3 coz subsidised benefit is usually post tax right either (1-30% )or 70%…
Part 1 &4 understood thanks
Where can I get the Acca answer solution for this Omnikit …
If u have plz send meIn the Qn for omnikit for Npv in foreign …
I got this question but don’t have the Acca answer for it can plz help or guide me where can I get the solution for itIf there is no disposal so in y6 so we don’t depreciation rgt so we find the tax on it directly
Which is correct ?
1)so for y6 do we depreciate first then find the tax on it or
2)Do we have to find the tax on bal figure ..wdv -0(zero)disposal=bal.
Bal* tax rateIf that’s the case then why In specimen exam 1 Qn 1 they recognize the provision while only one criteria met n the other criteria that of no communication was not met….
Why did they recognize it as provisionOkay…
But Kaplan text book shows
Actual hrs paid *actual labour rate
Actual hrs worked *standard labour rate…
So am confusedFixed cost of 50 we get by taking 96-46 rgt…
N why do we reduce the fixed cost
Okay understood thanksYes I know that’s not the only reason behind my fail..but the whole five questions in section B on the variance I was just blank n I lost the confidence of doing the exam…it was very difficult to understand the logic …I want to understand the logic behind that question in dec 2020 so that next exam I am confident that any type of variance questions I can do ….it’s always good to learn from mistakes …so I don’t wanna risk …is there any where that u have reviewed the December 2020 exams questions or I can get the question from…
Thanks for ur advice I will definitely follow up ..
N is there enough time for March exam ..A contract requires 100 hrs of skilled labour labour is paid 5$per hour .
Labour is currently fully occupied making another product which is generating a contribution of 8$per unit.each unit of the other product requires 2 hrs of skilled labour .what is the relevant cost for labour
