- This topic has 4 replies, 2 voices, and was last updated 1 year ago by
.
- Posts
maam in this question’s part b)ii) what is the intangible asset? computer software(likely to be purchased) or customer database(likely to be internally generated)? Or both? and so accordingly we have to write the procedures for both?
“…to assist with your valuation of Titian Tyres Co’s intangible assetS.” i.e. plural – the customer database is one, the license is another.
no ma’am license I know, but apart from the obvious 2(Customer database and license) I was asking is the computer software third intangible asset? because some fo the procedures are directed specially towards software, with no connection to customer database
in a real exam situation it would have never struck me to write procedures on software in itself, like what the examiner has done…I was having hard time thinking all procedures for customer database
In the first para of the scenario “As part of the due diligence review and to allow
for consideration of an appropriate offer price, Sanzio Co has requested that you identify and value all the assets and liabilities of Titian, including items which may NOT currently be reported in the statement of financial position.”So I would expect focus to be on what is internally generated (as anything purchased would presumably be reported). You needed only 8 points for full marks – it doesn’t matter if you couldn’t think of them all – if you didn’t consider that the database might have its origins in purchased software (suggested by 3 bullets) you might have considered, instead, that there would have been internal costing records concerning its development.
- You must be logged in to reply to this topic.