EssayQuestionsChapter3 - McKeith and Collins Financial Accounting Reporting 2nd edition Essay Questions Chapter 3 1 Discuss the extent to which the

EssayQuestionsChapter3 - McKeith and Collins Financial...

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McKeith and Collins, Financial Accounting & Reporting, 2 nd edition Essay Questions Chapter 3 1. 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 in the 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 of brands 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 = Easy Level II = Intermediate Level III = Difficult
McKeith and Collins, Financial Accounting & Reporting, 2 nd edition Essay Questions with solutions 1. Discuss the extent to which the costs incurred in research and development qualify for asset recognition.

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