L'Oreal is the world's largest cosmetic company, with brands such as its own name, Redken, Mayhelline, Lancome, and Ralph Lauren, just to name a few.
Access L'Oreal’s annual financial statements for the year ended December 31, 2011, from the company's website and answer the following questions with respect to the intangible assets.
(a) Identify all types of intangibles that are reported by L'Oreal and their related amounts. You may have to refer to the notes to the financial statements to complete your list. How much was
added to each intangible asset during the year? Are intangible assets a significant portion of the
company's total assets?
(b) For each intangible asset that you identified, indicate the accounting policy that L'Oreal follows.
(c) Describe how L'Oreal's management tests for impairment of intangibles. Be specific on the
methods and assumptions used. Are these reasonable? Is there any other information you would
like to have as a user? Were any impairment losses reported in 2011?
(d) Does L'Oreal report any R&D assets? Explain. What were the company's expenditures on R&D for its year ended December 31, 2011?
(e) How does L'Oreal account for advertising costs?
(f) Read Note 2 to the financial statements and describe the amounts of the intangible assets

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