Contents

• This assignment is based on the following topic –
• Assess the following newspaper article at the Moodle website: West, M 2004, ‘Firms to fight writedown rules new standards could wipe $50 billion from balance sheets’, The Australian, 16 February.
• - Briefly review the accounting treatment of intangibles in AASB 138 Intangible Assets following the adoption of international financial standards in Australia. Is the writedown of some intangibles consistent with the AASB Framework?
• - Discuss the reactions of the constituents and regulators to the writedown of some intangibles.
• - Do you agree with the writedown of some intangible assets? Why or why not?

Description

The essay highlights on the new accounting standards in Australia in compliance with the international accounting standards for intangible assets. The new accounting rules in Australia, reflects valuation of intangible assets in the financial statements. As the businesses go global, the advancement in IT and decentralization of the market calls for acceptance of international accounting standards in Australia particularly for valuation and recognition of intangible assets in Australian firms.
The essay critically evaluates the advantages from application of new accounting standards in Australia. As Australian government decides to accept International Accounting Standards, many companies object and seek to have an exemption from this new rule. The paper will highlight on the current trends and issues faced by organizations when they compile the value of the intangible assets in the financial statements. The key components and compositions of intangible assets and its impact on the write-down of intangibles have been discussed.