Tutorial+topic+4+%26+5+%28week+6%29+-+solutions%281%29.docx

Tutorial+topic+4+%26+5+%28week+6%29+-+solutions%281%29.docx...

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FA&R Topic 4 & 5 Solutions Q1 1) The company may capitalise the copyright as intangible asset, and have to carry it at cost because there is no active market. Copyright will be amortised along it useful life. 2) The company cannot recognised the brand name as intangible asset because it is internally generated and not purchased from external party. Q2 Yes the amount can be recognised as provision, because it is an estimated obligation (debt) to customers for warranty purposes. It is classified in the credit side of BS, as a liability in form of provision. Q3 issues to the public 5 years bonds for $500,000 which pay interests every 6
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  • One '14
  • Debt, Financial Reporting, Candy & Sons Ltd, $1,351,200, $2,162,290

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