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- May 16, 2020 at 9:05 am
Sir, for PYQ Sept 2018 Q3 b(i)
“There are other intangible assets which are gradually replaced by the purchasing entity’s own intangible asset”
1.is it refers to they become own generated intangible assets?
“for example,customer lists,and it may make sense to account for these assets within goodwill.In such cases,investors may wish to reverse amortisation charges.”
2. The customer lists not valued at FV when acquired? why subsumed within goodwill? and why need to reverse amortisation charges for the customer lists?
“IFRS standard do not permit a different accounting treatment for this distinction”
3.What distinction is refers to here?
Thank you so much for your help.May 16, 2020 at 1:42 pm
This is a discussion question
It’s saying that some academics believe that more intangibles should be subsumed within goodwill.
If that happened the amortisation would be replaced by impairment reviews
And some academics think the opposite
So all you need to know is what the current rules are, and then discuss whether they might be the best rules that you could have
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