Juniper acquired several companies in 2005. Through these acquisitions it acquired several intangible assets. The company has given details related to the corresponding finite-lived purchased intangible assets. Now intangible assets that have a finite economic life are amortized. The assets that are considered to have indefinite life are not amortized, but they are regularly evaluated for impairment.
Cash and cash equivalents 98,000,000 A/R 199,000,000 1. What percentage of total assets consists of purchased intangible assets, net, at July 27th, 2013? At July 28th, 2013? What type of events triggered the existence of these intangible assets?
Purchased intangibles are originally valued at cost. The useful life of this asset is considered finite or indefinite. The residual value is presumed to be zero unless certain circumstances occur. The asset’s useful life is deemed indefinite when there is no estimable limit to the period over which it is expected to generate cash flows for the entity. An asset with an indefinite life requires no amortization until the life is determined to be definite. Under IAS 38 and U.S. GAAP, intangibles acquired in a business
The main elements of the balance sheet are assets and liabilities. Assets generally include both current assets (cash or equivalents that will be converted to cash within one year, such as accounts receivable, inventory, and prepaid expenses) and noncurrent assets (assets that are held for more than one year and are used in running the business, including fixed assets like property, plant, and equipment; long-term investments; and intangible assets like patents, copyrights, and goodwill). Both the total amount of assets and the makeup of asset accounts are of interest to financial analysts.
Goodwill is an intangible asset, probably the most intangible of all intangible assets, hard to measure and even more difficult to account for. Goodwill today constitutes a much larger part of acquisition prices than it did previously, resulting in a much greater impact on financial statements.
1. The Australian Accounting Standards Board made Accounting Standard AASB 138 Intangible Assets under section 334 of the Corporations Act 2001. Generally, Assets that do not have a definite existence are called intangible assets. AASB Australian accounting standards board 138 defines an intangible asset as an identifiable non-monetary asset lacking physical substance. It is a claim to future benefits that does not have a financial example. There are three main features of intangible asset as laid by AASB138.They are:
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
• The intangible asset needs to be identifiable which means that the organization should be able to dispose of the asset without disposing off the whole of the business at the same time.
WHAT IS GOODWILL? The main method used by businesses to classify assets is to split them into tangible assets, which have a separate existence from the business (examples of which would include buildings, land and machinery), and intangibles which do not. Some clear examples of intangibles include goodwill, patents, research and development expenditure and trademarks. Intangible assets are usually created within the organisation over a period of time, by the company itself, rather than acquired from an external source and are rarely sold off individually they can normally only be sold in conjunction with associated tangible assets.
GOODWILL What is the definition of Goodwill? Goodwill is an intangible asset that mostly appears as the biggest intangible asset on the balance sheet. The Goodwill can only be identified with the business as a whole. Therefore, the goodwill cannot be sold individually in the marketplace, while some other intangible assets can be sold.
Executive summary Recently, importance of intangible assets for a reporting entity has been increasing continuously. This report will discuss intangible assets with indefinite or infinite useful life and research and development expenditure in SEEK Ltd annual report 2014. This report will state the background of SEEK Ltd and the increasing importance of intangible assets. Furthermore, the disclosure of intangible assets and research and development expenditure will be revealed. Moreover, this report will critically evaluate whether the disclosures SEEK has made are in accordance with requirements of intangible assets’ segment in AASB 138. Consequently, this report will summary the findings and states the basic recommendation.
Over the years, there have been various accounting treatments of purchased goodwill as follows: 1. Immediate write off against reserves 2. Capitalisation with amortization over a pre-selected number of years 3. Capitalisation with annual impairment reviews Using the IASB Framework, you are required to evaluate each of the above alternative treatments. Introduction Goodwill is the difference in monetary value
Assets will mean all variables of creation utilized as a part of the generation process. Such assets are rare. So every firm will attempt to make ideal allotment of such rare assets to get most ideal result.
IAS 38 applies to all intangible assets other than: financial assets, exploration and evaluation assets, intangible assets covered by another IFRS, such as intangibles held for sale and
Name: Su Han Program: M2 Luxury Management Food&Wine Title of the case: Samsung and theme park industry in Korea 1) “Is the Global theme parks industry an interesting industry to be in?” a) Rivalry among existing competitors Is the industry growing rapidly? Yes,because of the increasingly fierce competition and the maturity of the market. Concentration Do the 4 biggest players have together more than 80% of market share? Yes, because 4 biggest players which are The Walt Disney Company,Time Warner’s Six Flags Corporation, Paramount, Anheuser Busch and Cedar Fair have together more than 80% of market share.