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Dixon Ltd

AASB 138 Intangible Assets

Ocean Fresh

Salty Taste

DEFINITION

" Identifiable Non monetary asset without physical substance "

Dixon Ltd

Contents

Internally generated

Dixon Ltd

  • Controlled as a result of past events
  • Probable economy benefit

Ocean Fresh

presented by

1. Brief Background Dixon Ltd

Salty Taste

2. Classification of Intangible Assets

Dian Kartika Sari

3. How to treat repair cost of Panamax ship?

RECOGNITION

CRITERIA

4. Can company reputation be added into goodwill?

  • Future Economic Benefit
  • Cost Reliably Measured

5. Conclusion

Internally Generated Intangible Assets

Cost is not reliable measured

Unidentifiable

Difficult to distinguished from the

initial development

1. Internally generated

On the other hand

INTANGIBLE ASSETS CLASIFICATION

2. Externally generated

Cannot be included into

balance sheet

Example : internally generated brand names, patents, trademark, license, software, goodwill.

Failed to be recognised as asset

EXTERNALLY GENERATED

INTANGIBLE ASSETS

Acquired from purchasing

According to AASB 138 always satisfy for Intangible assets

We can refer this as goodwill

Can be included into balance sheet

Company Reputation & Goodwill

How to treat repair cost of Panamax ship?

Company Reputation

Dixon Ltd

Goodwill

It is part of company's goodwill

Internally generated

Arise only through business combination

One of the most valuable intangible assets

Ocean Fresh

It is expected to be increased

BUT

Difference between purchase price and the acquisition asset

Not arise through business combination

Externally generated

Salty Taste

Record in balance sheet of acquirer

Company Reputation

Guaranteeing repair to damage ship

Probable economic flow into entity

BUT

unidentifiable & not reliable measured

Cannot be added into goodwill

Cost related to advertising and promotional activities

Reason of guaranteeing repair cost

under AASB 138 para 69(c) should be expensed to Profit Loss Statement

Brand building advertising campaign

Under GAAP, cannot be capitalized into asset

Keep the ship at best original condition

General Flow - How to treat repair cost of Panamax ship?

Conclusion

Not prolong the useful life

Not adding new value

In conclusion...

Part of advertising

& marketing

Profit Loss

Statement

Expensed

Repair cost of

Panamax ship

Not adding new value

to asset

Thank You

Financial value hard

to determined

Objective

Cannot

be added

into

goodwill

Increase

reputation

Not part of business combination

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