Intangible Assets

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Research Based Case Study and Report (ACCG224) Cervantes Corporation Ltd. South Perth, WA Clean Seas Tuna Limited South Australia BY: Jiamei Gu Student ID: 42184169 October 2, 2012 Table of Contents EXECUTIVE SUMMARY 3 INTRODUCTION 4 EVALUATION OF THE DISCLOSURES OF SELECTED COMPANIES 5 Disclosures on Intangible Assets 5 Compliance with AASB 138, Paragraphs 118 to 123 and 126 to 128 6 Differences in Disclosures Between the Two Companies 7 RECOMMENDATIONS 9 LIST OF REFERENCES 10 APPENDICES 11 Appendix A – Cervantes Corporation Ltd. – Consolidated Statement of Financial Position 11 Appendix B – Cervantes Corporation Ltd. – Note 1 (i) 11 Appendix C – Cervantes Corporation Ltd. – Note 13 12…show more content…
However, there is difficulty in assigning values to intangible assets because they have no physical form. Some companies even neglect recognition in their financial statements. In an attempt to improve the quality and increase the usefulness of financial reports, this research-based case study aims to review the disclosure requirements for intangible assets. It will be based on the comparison of the disclosures of Australian Securities Exchange listed companies, namely, Cervantes Corporation Ltd. and Clean Seas Tuna Limited, both participating in the aquaculture industry. It involves an evaluation of the companies’ Notes to the Financial Statements as of June 30, 2012, identifying all the disclosures presented to determine consistency with the requirements under AASB 138, paragraphs 118 to 123 and paragraphs 126 to 128. EVALUATION OF THE DISCLOSURES OF SELECTED COMPANIES Disclosures on Intangible Assets The Consolidated Statement of Financial Position as of June 30, 2012 of Cervantes Corporation Ltd. reported intangible assets of $188,670. Accordingly, Notes to the Financial Statements (Notes 1 (i) and 13) disclosed the composition, nature, valuation, useful life and provision for impairment of these assets. These are composed of licenses and leases on
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