On the $1$ January $2018,$ Easy Stone Limited, acquired the popular brand, Just Brick It

for an amount of R$3500000$ which was paid in full on this date. Legal fees of R$150000$

was spent in acquiring this brand. The legal fees were paid on the $31$st of March $2018.$

$2$

Staff training on the brand and its operations amounted to R$100000.$ Training took place in March

and April $2018$ to allow for trading from the $1$st of June $2018.$ Sales of this brand commenced from

the $1$ June $2018.$

Required:

$3\mathrm{.}1.$ Discuss with reason whether Just Brick It can be recognized as an Intangible asset with

reference to IAS $38.(12)$

$3\mathrm{.}2.$ Explain the correct accounting treatment for Just Brick It in the financial statements of

Easy Stone $($Pty$)$ Ltd$.(8)$

Answer rating: 100% (QA)

31 Just Brick It can be recognized as an intangible asset in accordance with IAS 38 IAS 38 defines a... View the full answer