At 1 January 2015 Sonalt Ltd, an Internet service provider, owned the following intangible assets: Description...

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At 1 January 2015 Sonalt Ltd, an Internet service provider, owned the following intangible assets: Description Additional information Internet domain name Acquired in a separate acquisition on 1 January 2014 for Ksh Software Customer list Ringtones 30,000,000. The useful life is estimated to be 10 years. Acquired in a separate acquisition on 1" January 2015 for Ksh 5,000,000. Estimated useful life-ten years from date of development. Remaining useful life-five years. Acquired in a separate acquisition on 1 January 2014 for Ksh 10,000,000. Estimated useful life-five years from date of acquisition. Internally developed. Estimated useful life-three years from date of development. On 30 June 2016 Sonalt Ltd acquired ringtones developed by an independent third party for Ksh 2,000,000. The useful life of the ringtones is expected to be three years from the date of acquisition. On 30 September 2016 Sonalt Ltd acquired 60 per cent of the issued share capital of Sizungumzi Ltd in a business combination when the fair value of Haskin Ltd's identifiable intangible assets were: Description Internet domain name Software Customer list Advertising contracts Ksh Additional information 50,000,000 Unable to make a reliable estimate of the useful life. 60,000,000 Internally developed. Estimated remaining useful life ten years. 40,000,000 Internally generated. Estimated remaining useful life five years 200 50,000,000 Five-year contracts (all contracts started on 1 October 2015) for customers' advertisements to appear in a designated space on Sizungumzi Ltd's website. Customer list Advertising contracts years. 40,000,000 Internally generated. Estimated remaining useful life five years 50,000,000 Five-year contracts (all contracts started on 1 October 2015) for customers' advertisements to appear in a designated space on Sizungumzi Ltd's website. In-process research and development 8000,000 Various current research and development projects to enhance the value of the services offered by the entity. In the last quarter of 2016 Haskin Ltd incurred Ksh 1,000,000 on research and development. The project was completed during the period. At 31 December 2016 Sonalt Ltd confirmed its previous assessments of the group's intangible assets. Page 5 of 10 Draft and extract showing how the intangible assets could be presented and disclosed in the financial statements of Hakuna Matata Ltd Group for the year ended 31 December 2016. (20 Marks) At 1 January 2015 Sonalt Ltd, an Internet service provider, owned the following intangible assets: Description Additional information Internet domain name Acquired in a separate acquisition on 1 January 2014 for Ksh Software Customer list Ringtones 30,000,000. The useful life is estimated to be 10 years. Acquired in a separate acquisition on 1" January 2015 for Ksh 5,000,000. Estimated useful life-ten years from date of development. Remaining useful life-five years. Acquired in a separate acquisition on 1 January 2014 for Ksh 10,000,000. Estimated useful life-five years from date of acquisition. Internally developed. Estimated useful life-three years from date of development. On 30 June 2016 Sonalt Ltd acquired ringtones developed by an independent third party for Ksh 2,000,000. The useful life of the ringtones is expected to be three years from the date of acquisition. On 30 September 2016 Sonalt Ltd acquired 60 per cent of the issued share capital of Sizungumzi Ltd in a business combination when the fair value of Haskin Ltd's identifiable intangible assets were: Description Internet domain name Software Customer list Advertising contracts Ksh Additional information 50,000,000 Unable to make a reliable estimate of the useful life. 60,000,000 Internally developed. Estimated remaining useful life ten years. 40,000,000 Internally generated. Estimated remaining useful life five years 200 50,000,000 Five-year contracts (all contracts started on 1 October 2015) for customers' advertisements to appear in a designated space on Sizungumzi Ltd's website. Customer list Advertising contracts years. 40,000,000 Internally generated. Estimated remaining useful life five years 50,000,000 Five-year contracts (all contracts started on 1 October 2015) for customers' advertisements to appear in a designated space on Sizungumzi Ltd's website. In-process research and development 8000,000 Various current research and development projects to enhance the value of the services offered by the entity. In the last quarter of 2016 Haskin Ltd incurred Ksh 1,000,000 on research and development. The project was completed during the period. At 31 December 2016 Sonalt Ltd confirmed its previous assessments of the group's intangible assets. Page 5 of 10 Draft and extract showing how the intangible assets could be presented and disclosed in the financial statements of Hakuna Matata Ltd Group for the year ended 31 December 2016. (20 Marks)