Your Opinion on the Recognition, Measurement, and Disclosure of Internally Generated Intangible Assets This mini project focuses
Question:
Your Opinion on the Recognition, Measurement, and Disclosure of Internally Generated Intangible Assets
This mini project focuses on your reaction to some suggestions made by users of financial statements and others (such as academics) about how they think currently unrecognised internally generated intangible assets should be accounted for in financial statements.
For each suggestion listed below (A - F), please elaborate WHICH ONE you think is the most appropriate based on your perception of costs to prepare vs benefits to users.
A. Initially recognised and measured at fair value and subsequently revalued at fair value with related disclosures
B. Initially recognised and measured at cost and subsequently revalued at fair value with related disclosures
C. Initially recognised and measured at cost, with an accounting policy choice of whether or not to be subsequently revalued at fair value, with related disclosures
D. Not recognised, but instead narrative descriptions of the nature of each class of intangible asset. In addition, initial and subsequent disclosure of fair value (including valuation methodology and underlying significant estimates and judgements) in the notes to the financial statements
E. Not recognised, but instead narrative descriptions of the nature of each class of intangible asset. In addition, initial and subsequent disclosure of cost in the notes to the financial statements
F. Not recognised, but instead narrative descriptions of the nature of each class of intangible asset. In addition, initial and subsequent disclosure of some related financial information that might be pertinent to a user making their own estimate of fair value (e.g., indications of costs incurred during the reporting period) in the notes to the financial statement
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson