A client of yours Sandfield Ltd (a television manufacturer), has come to you for advice on a number of financial reporting issues of which they are unsure about the financial reporting treatment for the year ended 31 August 2022. You have received the following email.

TV Brand:

A few years ago we purchased the brand name Digitas to use to produce our own line of Televisions for £2,000,000. As sales of Digitas products are increasing we believe the brand name actually has a higher fair value and are aware a competitor bought a similar brand for £10,000,000 recently. Is it possible for us to revalue the Digitas brand to a higher fair value?

Required: Treatment of the above items for in the financial statements for the year ended 31 March 2021

Answer rating: 100% (QA)

Sandfield Ltd should update the Digitas type at the appropr... View the full answer