F7 – Queries

Hi Sir, Thanks for answering my queries from the earlier post. I have a few more queries and would appreciate your input.

If a intangible asset has a finite life say 10 years should it be reviewed for impairment yearly?

In the calculation of goodwill in determining the FV of SNA @ DOA, If you are told that a liability’s Fv is X less then its carrying amount. Would this have the effect of increasing goodwill @ DOA.

If a question states explain why the share capital is only for Parent company in the CSOFP.

A answer along the lines of – The accounts are being prepared for the shareholders for the parent so it would in effect show the resources controlled by the group which are owned by the shareholders of the Parent.

A change in inventory valuation is a change of accounting policy and a change in dep’n method/no of years on asset is a change of accounting estimate.

Discountinued operations presentation in the accounts – Is it correct to say the profit / loss should be shown on the face of the financial statements and the detailed info such as revenue tax exp’s etc.. should be disclosed in the notes to the accounts.

If a asset is being produced can the dep’n costs of assets which are being used to produce this asset be capitalised to the cost of the asset?

And Lastly is it correct to state that research costs should be written of on straight line basis?

Once again thanks for your time.