Accounting Analysis

Accounting Analysis

Question 3 (Word document)

Design

In accordance to the paragraph 119 A, the class of the intangible assets is basically a sort of grouping of assets of a much similar nature and is been used in an entity's operations. Examples of various separate classes are inclusive of different items and design is one of them. Design is one of those classes which are aggregated or disaggregated into classes which are smaller (larger) classes, in case this is resulting in more relevant information for the individuals who make use of financial statements (www.aasb.gov.au).

Tooling and Jigs

In the example of the development activities design has been categorize as one of them in paragraph 59. Development phase is explained in paragraph 58 as, in the phase of development of any internal project the entity might identify an intangible asset and show that asset will be generating economic benefit in some future date potentially. This is due to the development phase of the particular project which is further much more advanced than the research phase (www.aasb.gov.au).

Prototypes

In accordance to the paragraph 5 that, various standards which are applied and expenses which are incurred in advertising, start-up, training, R & D activities might result a tangible asset in form of a prototype, which has physical existence. The physical element this asset has is secondary to its intangible component which is basically the learning acquires through it or the experience it has given (www.aasb.gov.au).

Training

The paragraph 67 has stated that the expenditure incurred on training the staff members for operating the assets are not components of the cost of the intangibles which are generated internally. An entity might be having team of skilled staff and might also have an ability of identifying the incremental skills of the staff which are going to be leading it to future economic benefits through conduction of these trainings.

The entity may also expect that the staff is going to continue making their skills available for entity. On the other hand, an entity usually do not has much sufficient control over the expected economic benefits for future which is arising from skilled staff members of the team and from training of all of these items for meeting the definition of intangible assets. Due to this particular reason, managing or technical talent are not likely for meeting the particular definition of the intangibles, until they are been protected through some legal rights for using it and for obtaining the economic benefits expected in the future through all this and it also helps in meeting various other parts of the definition.

Patents

Patent are basically an intellectual property right which is granted through the Government s of the States to the investors. This is done for the sake of excluding others from manufacturing, making use of, making offers for selling, or selling the particular invention all the way through the the economy or also importing the invention in the economy it is dealing in for some of the limited time os for the exchange for public revelation of the ...