Essay on Advanced Issues in Accounting

Submitted By BiBi_Lin
Words: 2104
Pages: 9
Open Document
CO5123
ADVANCED ISSUES IN ACCOUNTING
PEI-JU LIN (13035425)
XIANGJIN HUANG (12992351)

CO5123

Advanced Issues In Accounting

Group Essay

Intangible assets have become the vital drivers of financial performance which has urged a growing amount of managers to measure internal decision-making and control purposes by underlining existing intangible assets in the firms (Christopher,
2008). In this essay, 2 companies, including Harvey Norman Holdings Limited (HVN) and Aristocrat Leisure Limited (ALL) will be evaluated. Firstly, this essay will discuss intangible assets which are identified and compared between the presentation of 2 financial statements within HVN and ALL, and the recognition under AASB138.
Secondly, the ratios calculations in both companies will be analysed. Thirdly, the optimal approaches for intangible assets within 2 companies will be examined.
According to paragraph 54 of AASB 101 Presentation of Financial Statements, intangible assets, as a category, must be separately disclosed in a corporation’s statement of financial position (AASB101, 2012). In terms of AASB 138, intangible assets are classified as identifiable, including patents, mastheads, brands, copyrights and trademarks, or unidentifiable which mainly refers to goodwill. Nevertheless, the situations that only where there is an associated cost with intangible assets, or when it has been externally acquired, will be recognised in the financial statements
(AASB138, 2009). The first company to be stated is Harvey Norman Holdings Limited.
It is a retailing company which only engages in a small portion of intangible assets that refer to computer software, goodwill and license property (HVN, 2014).
1|Pa g e

CO5123

Advanced Issues In Accounting

Group Essay

Compared the 2 years’ annual reports, there was an obvious increasing in the assets of license property in 2014. The license property rose sharply to $4,279,000, which was almost adding $4,000,000 more to its net book value than that of its 2013.
Conversely, computer software extended its net book value from $58,532 000 to
$73,609,000, which was approximate $15,000,000 increased. The net book value of goodwill was the only one that kept its value from 2013 to 2014 ($10,000).
Consequently, the total intangible assets of HVN in 2014 grew around $20,000 more than what it is in 2013 (see appendix 1). The other firm is Aristocrat Leisure Limited.
It is a global provider of gaming solutions as an Australia-based. The organisation is involved in the design, development and distribution of gaming content, platforms and systems. Besides, it is licensed by in exceed of 200 regulators (Google, 2015).
Therefore, a great number of intangible assets will be utilised in ALL. In accordance with the financial statements, goodwill, licences, capitalised development costs, technology and software are recognized as intangible assets in ALL. Compared to the
2 years financial reports, capitalised development costs have increased by the amount of $5909000. However, both goodwill, and technology & software have dropped down by a large amount in 2014. Hence, the total number of intangible assets have decreased by $20667000 from the year of 2013 to 2014 (ALL, 2014) (see appendix 2).
2|Pa g e

CO5123

Advanced Issues In Accounting

Group Essay

Intangible assets are purchased as long-term assets which must be amortised over their useful lifetimes by companies. Amortisation is the periodic recognition of an expense that is reduced the purchase cost by the useful life of asset to calculate the annual amortisation expense. Once the intangible assets have been expenses, the reduction of total assets occurs. In the end of years, firms adjust the retained earnings by the net income or loss annually. Therefore, the retained earnings will be decreased in the equity section (Hearst Newspapers, 2015). The ratio calculations of return on assets, return on equity, debt to equity and debt to total assets in 2013 and
2014 will be analysed
Show More

Related Documents: Essay on Advanced Issues in Accounting

Goal Of The Masters Of Science In Accounting

Science in Accounting (MSA) Program: The primary goal of the MSA program is to prepare the student for a professional career in accounting, and, in particular, to prepare the student to take and pass the Uniform CPA Examination (or other appropriate professional examination). Students who complete the MSA degree will build on their undergraduate business and accounting coursework to obtain a comprehensive understanding of complex financial accounting and reporting, taxation, and regulatory issues. Students…

Words 2363 - Pages 10

ACTG 4160Y Trivedi Course Outline Winter 2015 Final Essay

4160 Section Y 3.0: Advanced Financial Accounting Course Outline Winter 2015 Thursday(s), 2:30 to 5:30 p.m., beginning January 8th Instructor Faculty Secretary Shanker Trivedi Mary Rizzo (416)736-5066 416-736-5066 S3447 Seymour Schulich Building S344K Seymour Schulich Building strivedi@schulich.yorku.ca mrizzo@schulich.yorku.ca Office hours: Wednesdays 2:30-3:30 and Thursdays 11:30 a.m. to 2:30 p.m. Shanker Trivedi’s research interests are in financial accounting, the accounting profession, and tax…

Words 3288 - Pages 14

Accounting Standards Board Paper

A Joint Venture: International Accounting Standards Board and the Financial Accounting Standards Board ACC 541 Accounting Theory & Research Chelsey Mills June 30, 2015 The Financial Accounting Standards Board (FASB), since 1973, has remained the appointed organization for establishing financial accounting standards for the United States. The organization is recognized by the Securities and Exchange Commission as well as the AICPA. The International Accounting Standards Board, established in…

Words 1106 - Pages 5

Essay about Accounting: Accountancy and Certified Public Accountants

Accounting is a glorious but misunderstood field. The popular view is that it's mostly mind-numbing number-crunching; it certainly has some of that, but it's also a rich intellectual pursuit with an abundance of compelling and controversial issues. Accountants are often stereotyped as soulless drones laboring listlessly in the bowels of corporate bureaucracies. But many accountants will tell you that it's people skills, not technical knowledge, that are crucial to their success. And although it's…

Words 544 - Pages 3

Essay on Seminar 1

good [seminar] is to have a good beginning and a good ending; and to have the two as close together as possible.” (George Burns) 2 Business and Economics Welcome to the wonderful world of ... Advanced Strategic Management Presented by Ralph Kober Accounting ACF5100 Advanced Strategic Management Accounting Can you pass it? YES YOU CAN! “Learning is not attained by chance, it must be sought for with ardour and attended to with diligence” (Abigail Adams, 1744 – 1818) 4 Who is the Chief Examiner…

Words 3552 - Pages 15

Accountants: Auditing and Management Accountants Essay

numbers, such as earnings and salaries. While Internal auditors, on the other hand, check that records are accurate and that controls are in place to protect against fraud and waste. | The management accounting section will deal with advanced material related to the area. Studies will involve accounting pricing decisions and performance measurement in general, within organizational structures. This part will also include an examination of the elements of strategic management and the different contributions…

Words 619 - Pages 3

Evaluation Of International Accounting

Introduction International accounting harmonization has always been a significant issue in accounting study at the recent time. With the development of international capital market and the growth of global economic, international accounting harmonization has become a mainstream trend all over the world (Senin,2012). Also, the hot issue drew a great attention with extensive debates. Goeltz (1991) stated that all of the harmonization of international accounting standard has not intrinsic value as well…

Words 1122 - Pages 5

intermediate accounting 2 test bank Essay

Intermediate Accounting Kieso 15th Edition Test Bank Click here to download the solutions manual / test bank INSTANTLY!!! http://www.solutionsmanualtestbanks.com/2013/05/intermediate-acc ounting-kieso-15th-edition-test-bank.html Intermediate Intermediate Intermediate Intermediate Accounting Accounting Accounting Accounting Kieso Kieso Kieso Kieso 15th Edition Test Bank 15th Edition Test Bank Weygandt Warfield 15th Edition Test Bank Weygandt Warfield 15th Edition Test Bank…

Words 8328 - Pages 34

Essay on Part A

May 2015 Subject: Vehicles for Hope Limited Audit Planning This memo will discuss the issues that were noted in the VHL engagement for the current year. Several factors increase the level of audit risk associated with this engagement as outlined in this memo and we will discuss safeguards and procedures on how to approach them. Familiarity threat Before proceeding with engagement, I would like to address the issue on familiarity as I have been the auditor for VHL for the past five years and during…

Words 1187 - Pages 5

Braun3e Ch01 Inst Essay

Introduction to Managerial Accounting Chapter 1 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1 Objective 1 Identify managers’ three primary responsibilities Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 2 Managers’ Responsibilities Planning Decision Making Setting goals and objectives Directing Overseeing day-to-day operations Controlling Evaluating results of operations Copyright © 2013 Pearson Education, Inc. Publishing as Prentice…

Words 1149 - Pages 5