McKeith and Collins, Financial Accounting & Reporting, 2ndeditionEssay Questions Chapter 31. Discuss the extent to which the costs incurred in research and development qualify for asset recognition. 2. The information below is taken from a recent annual report of a major company inthe drinks industry. Explain the terms underlined in the extract and discuss, in the context of the provision of IAS 38 (Intangible Assets), the extent to which the value ofbrands should be included in the statement of financial position of a company.3. Discuss the extent to which goodwill should be recognized in the financial statements of a business.4. From an accounting viewpoint, intangible assets are in essence the same as tangible assets and should be treated in exactly the same way. Discuss.5. IAS38 takes the view that expenditure incurred after the initial recognition of a purchased intangible asset will only rarely be capitalized. Discuss the reasons for this and explain the treatment available under IAS 38. Key:Level I = EasyLevel II = IntermediateLevel III = Difficult
McKeith and Collins, Financial Accounting & Reporting, 2ndeditionEssay Questions with solutions1. Discuss the extent to which the costs incurred in research and development qualify for asset recognition.