Rogan Ltd acquired two copyrights during 2022. One copyright related to a textbook that was developed internally
Question:
Rogan Ltd acquired two copyrights during 2022. One copyright related to a textbook that was developed internally at a cost of $12,000. This book is estimated to have a useful life of 5 years from 1 September 2022, the date it was published. The second copyright was purchased from the Macquarie University Press on 1 December 2022 for $21,000. This book, which analyses Aboriginal history in Tasmania prior to 1900, is considered to have an indefinite useful life.
Required
Explain how these two copyrights should be reported with reference to AASB138 requirements in the statement of financial position of Rogan Ltd at 30 June 2023. Please state the amounts that these two copyrights are recorded and any related amortisation charges per annum.
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield