Topic

Intangible assets have become a matter of concern for analysts, accountants, company stakeholders, regulators and company directors. On the one hand intangible assets present the potential for unscrupulous or desperate company officials to manipulate the presentation and reporting of intangible assets. On the other hand the traditional bricks and mortar type assets are not always the only relevant assets of companies due to the extensive technological developments that have taken place. For instance Google and Microsoft are examples of firms where the intangibles assets are likely to be the biggest assets group in terms of monetary value.

Task: The AASB has released many standards in order to clarify the conceptual framework. This written assignment is to critically discuss and evaluate AASB 138 Intangible Assets. You will need to explain how intangible assets are treated differently to other assets reported in the Balance Sheet. In particular you will need to address the following questions –

1. What is the impact on profits?

2. What is the impact on the value of the business?

3. Upon what grounds in the conceptual framework is this treatment justified?

Students must demonstrate an understanding of the accounting issue addressed by the standard and how that issue has been addressed. In your assignment you should explain the arguments for and against the stance taken by the AASB and include alternative solutions that may have been presented by researchers. Any problems which may arise from the implementation of the standard should be addressed. A brief overview of the transaction analysis should be included and explained. Complicated examples should be avoided. You should be able to demonstrate a deep understanding of the issues and challengers faced by the AASB as it attempts to formulate accounting standards that are faithful to conceptual framework, but at the same time meet the expectations and the practical restraints of the business community.

Learning Outcomes (LO)

On successful completion of Assessment Task 1, you should be able to:

LO 1. Explain current accounting theory, the paradigms and the methodologies it has generated, how it has developed; and

LO 3. Analyse and assess the impact that conceptual framework projects make to accounting practice.

Graduate Attributes (GA)

On successful completion of Assessment Task 1, you should have developed your ability to:

GA 4. Think critically and reflectively;

GA 5. Demonstrate values, knowledge, skills and attitudes appropriate to the discipline and/or profession;

GA 6. Solve problems in a variety of settings taking local and international perspectives into account; and

GA 8. Locate, organise, analyse, synthesise and evaluate information

Important:

No extension of time will be given under normal circumstances. Assignments must have the standard cover sheet and be signed. Any student submitting his/her assignment after the deadline but within 72 hours of it will be penalised 10% of the maximum mark available for the assignment. Any submissions after this time will receive a zero mark.

Remember:

The assignment will need to be submitted electronically via LEO Turnitin through the student portal and will be checked for originality.

This assignment must include the following

• Introduction

• Body and content – main discussion to questions raised

• Conclusions

• Appendices

Details (General) Students are expected to research the topic in relevant accounting/finance texts and journal articles. The research should be well referenced. Do not rely solely on the prescribed text.