This report has been written to analyse the financial statements of the theme park Dream world and discuss the observations. In order to achieve this, the financials for the year 2016 has been compared with the financials of previous years to ascertain the changes in the operational activities. Dreamworld is the biggest theme park in Australia and is a part of Argent Leisure group. The financial statements procured are of Argent Leisure group and Dream world is only a segment of it. It has been observed that the company had an overall profit of 9% during the year 2016 with an Earnings Per Share of 9.37(cents). Although there was a negligible decline in profit of 0.38% as compared to last year despite the increase in revenue. Major …show more content…
The only exception to this is Research and Development expense where Development expenses are internally generated and can still be recognised as Intangible Assets . Argent Leisure - Intangible Assets 2016 2015 (in 000 's) (in 000 's) Customer Relationships 2,202 5,549 Brands 5,715 6,766 Other Intangible Assets 10,179 5,477 Goodwill 228,033 225,152 Total Intangible Assets 246,129 242,944 Argent Leisure (comprising Dreamworld) has 3 main types of Intangible assets apart from a group of other intangible assets, a part of which get amortised every year. These intangible assets are customer relationships, brands and goodwill. Goodwill covers 92.64% of the total intangible assets as on 2016 with an increase of 1.28% from 2015. Goodwill here represents the goodwill acquired by the group through acquisitions of other companies and is subject to impairment test every year. The increase during the period of 2016 is negligible as there were $27.6m(approx.) worth of additions in goodwill during 2015, whereas the additions in 2016 were only $857k. No goodwill was impaired during the year. Goodwill related to theme parks was $4.37m for both 2015 and 2016 indicating no additions or impairment in both years. Other intangible assets comprise of registered trademarks of Dreamworld and licences related to other business units of the group. With a total increase of 85% in 2016, other intangible assets
In 2010, Bust-a-Knee paid MD International $15 million cash in exchange for its 100 percent ownership. A $15 million credit to the cash account indicates that Bust-a-Knee paid MD International that amount of cash at the date of transfer of the ownership. Ownership is treated as an intangible asset in this case. Intangible assets are non-physical assets that are acquired from others or developed internally by a company. Assets are the probable future economic benefits controlled by the company from past events or transactions. Intangible assets have similar characteristics with assets. Bust-a-Knee has control over MD International since equity had been transferred and will gain future economic profits because there are two in-process
vi) Goodwill- The beginning balance for Goodwill was determined by finding the difference between Total Assets and Total Liabilities at the beginning . Goodwill accounts for all the intangible assets that were transferred from the old company to the new company, including brand name, as well as a premium paid for the company. Goodwill was not amortized in this model.
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?
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.
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
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.
Goodwill, in the law and accounting, an intangible asset established a value over and above the valuation of the tangible assets of the
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.
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
Goodwill is seen as an intangible asset on the balance sheet because it is not a physical asset such as buildings and equipment. Goodwill typically reflects the value of intangible assets such as a strong brand name, good customer relations, good employee relations and any patents or proprietary technology.
Companies always have different kinds of assets, such as buildings and machines, but they also have some other assets like brand names, research and development, copyrights or patents. These assets contain three essential characteristics: they are assets, they lack physical substance and they are identifiable non-monetary. This kind of asset is called intangible asset. It can be recognized if it can meet these four criteria: it is separately identifiable, controlled by the enterprise, the expected future economic benefits will flow to the entity and the cost of the assets can be measured reliably. The fair value and validity of the intangible assets and the supply and demand in intangible assets market must be
Goodwill is the difference in monetary value between the amount paid by a purchasing company and the book value of the purchased company’s net assets (Moehrle and Reynolds-Moehrle, 2001). However, there has been debate over the recognition of goodwill as an asset. The Concept Statement No.6 (Financial Accounting Standard Board, 1985, p.16) defines an asset as having
Intangible assets are those assets that are not visible but can be measured and add to the profitability of the organization.In most companies and organizations, the intangible assets are greater than the tangibles.There are three types of intangible assets, all derived from people.(All assets and organizational structures are the result of human actions). The three types are:
An intangible asset arising from development (or from the development phase of an internal project) shall be recognised if, and only if, an entity can demonstrate all of the following:
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.