ASOS plc (2012) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2012 [extract] 1) ACCOUNTING POLICIES [extract] b) Intangible assets [extract] Other intangible assets The costs of acquiring and developing software that is not integral to the related hardware is capitalised separately as an intangible asset. This does not include internal website development and maintenance costs which are expensed as incurred unless […]

Accounting for upward and downward revaluations Entity E acquired an intangible asset that it accounts for under the revaluation model. The fair value of the asset changes as follows: £ Acquisition 530 Date A 550 Date B 520 Date C 510 Date D 555 The diagram below summarises this information (the impact of amortisation on the carrying amount and revaluation surplus has been ignored in […]

Assessing the useful life of an intangible asset Acquired customer list A direct-mail marketing company acquires a customer list and expects that it will be able to derive benefit from the information on the list for at least one year, but no more than three years. The customer list would be amortised over management”s best estimate of its useful life, say 18 months. Although the […]

Output-based versus revenue-based amortisation Entity Z acquires a 5 year licence to manufacture a product for a cost of £1,220,000. It is expected that the production line used for making the product has a capacity of 100,000 units per year. The entity plans to produce at full capacity each year. However, it expects the price per unit to be £10 in year 1 and increase […]

Application of ‘net liability’ approach Company A received allowances representing the right to produce 10,000 tonnes of CO2 for the year to 31 December 2013. The expected emissions for the full year are 12,000 tonnes of CO2. At the end of the third quarter, it has emitted 9,000 tonnes of CO2. The market price of the allowances at the end of the each quarter is […]

Centrica plc (2011) SUPPLEMENTARY INFORMATION [extract] S2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [extract] EU Emissions Trading Scheme and renewable obligations certificates [extract] Granted carbon dioxide emissions allowances received in a period are recognised initially at nominal value (nil value). Purchased carbon dioxide emissions allowances are recognised initially at cost (purchase price) within intangible assets. A liability is recognised when the level of emissions exceed the […]

European Aeronautic Defence and Space Company EADS N.V. (2010) Notes to the Consolidated Financial Statements (IFRS) [extract] 2.1. Basis of Presentation [extract] 2. Summary of significant accounting policies [extract] Emission rights and provisions for in-excess emission Under the EU Emission Allowance Trading Scheme (EATS) national authorities have issued on 1st January 2005 permits (emission rights), free of charge, that entitle participating companies to emit a […]

Repsol YPF, S.A. (2010) Notes to the 2010 consolidated financial statements [extract] 3.3 Accounting Policies [extract] 3.3.6. Other intangible assets [extract] b) Emission allowances Emission allowances are recognized as an intangible asset and are measured at acquisition cost. Allowances received for no consideration under the National Emission Allowance Assignment Plan, are initially recognized at the market price prevailing at the beginning of the year in […]

ITV plc (2011) Section 3 Operating Assets and Liabilities [extract] Accounting policies [extract] Programme rights and other inventory [extract] Where programming, sports rights and film rights are acquired for the primary purpose of broadcasting, these are recognised within current assets. Assets are recognised when the Group controls the respective assets and the risks and rewards associated with them. For acquired programme rights, assets are recognised […]

The milling section of a factory engages 25 direct workers. During the month of June, they were paid for 4,800 normal attendance hours at an average rate of Rs.1.50 per hour. In addition, they also worked for 400 over-time hours at a double pay. The overtime was necessitated by abnormal circumstances in the month of April. For the purpose of reckoning labour cost, 40% for […]