IP ltd reports the following intangible assets:
Patents at directors valuation 160 million
less accumulated amortisation (40 million)
Trademarks at cost 15 million
Goodwill at cost 50Million
less accumulated amortisation (10 million)
Brand name 100 million
Licence at cost 10 million
less accumulated amortisation (1 million)
Patents were acquired at cost of 80 million and were revalued soon afterwards. They have an estimated life of 16 years, of which 12 years remain.
The trademark can be renewed indefinately, subject to continued use. The cost represents registration fees, which were initially expensed but recognised five years later after the trademark had started to become recognised by consumers.
Goodwill has been purchased and amortised on the straight line basis.
The brand name is stated at fair value and is internally generated
the licence has a 10 year life of which nine years remain. The licence can be traded in an active market and has a fair value of 17 million.
A) State how each asset, or class of assets should be reported in accordance with AASB 138
B) State the carrying value and whether each asset/ asset class should be amortised. Specify any choice of method permitted for IP Ltd.
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