Question 3 IP Ltd reports the following intangible assets: 141 Patents at directors' valuation less Accumulated amortisation (35) 106 14 38 Trademarks, at cost Goo at cost ess Accumulated amortisation 30 Brand name Licence at cost less Accumulated amortisation 8 Patents were acquired at a cost of $70 million and were revalued soon afterwards. They have an estimated life of 16 years, of which 12 years remain. The trademark can be renewed indefinitely, subject to continued use. The cost represents registration fees, which were initially expensed but recognised five years later after the trademark had started to become recognised by consumers Goowil has been purchased and amortised on the straight-line basis. The brand name is stated at fair value and is intermally generated The licence has a ten-year life, of which nine years remain. The licence can be traded in an active market and has a fair value of $16 million REQUIRED A. Apply AASB 138 and state the carrying amount and whether each asset/asset class should be amortised. Specify any choice of methods permitted for IP Ltd B. State how each asset, or class of assets, should be reported in accordance with AASB 138. Question 3 IP Ltd reports the following intangible assets: 141 Patents at directors' valuation less Accumulated amortisation (35) 106 14 38 Trademarks, at cost Goo at cost ess Accumulated amortisation 30 Brand name Licence at cost less Accumulated amortisation 8 Patents were acquired at a cost of $70 million and were revalued soon afterwards. They have an estimated life of 16 years, of which 12 years remain. The trademark can be renewed indefinitely, subject to continued use. The cost represents registration fees, which were initially expensed but recognised five years later after the trademark had started to become recognised by consumers Goowil has been purchased and amortised on the straight-line basis. The brand name is stated at fair value and is intermally generated The licence has a ten-year life, of which nine years remain. The licence can be traded in an active market and has a fair value of $16 million REQUIRED A. Apply AASB 138 and state the carrying amount and whether each asset/asset class should be amortised. Specify any choice of methods permitted for IP Ltd B. State how each asset, or class of assets, should be reported in accordance with AASB 138