Chapter 2

Reduction in capital
R&D capitalized only if
Unsuccessful Patent
successful defense
Good will reported at
Ifrs g/w imp is a one step test
Patent costs include
While calculating g/w impairment
Read question 86 in 2.1
Cash to accrual
Software maintainance
Software modification
Deffered gross profit
Installment sale
Foreign currency translation used when
Translation assets and liab
On personal st of f/s
On personal f/s
Gains or losses on fixed assets on inv conv
Inventory costs
eqmnt no alternative life except project
def g/p exceeding 12 months
Does not affect incomeunder both cash and accrual method.
Before tech feas estd and software is sold or leased(not for internally generated)
Expense( whole patent cost including cost of buying everything)
Capitalize
each reporting unit level
CV of cash generating unit is compared to CGU's recoverable amount which is greater of fv- costs to sell and its value in use..
Costs to purchase a patent Vat and legal taxes
consider fv and bv including g/w( do not sub g/w)
add incr in ca ..add decrease in cl
Expensed
cap
IN case of installment sales we use it( ending ar * gp%)
Foreign currency local currency is functional currency and the primary econ envt is not highly inflationary
Year end rate apic and common stock at historical exchange rate
income taxes= diff b/q fair value and tac bases of assets and fair value
all assets and liab measured at current cost
nbv+ clean up costs or any related costs..
Duplication costs and cost of packaging..
Expense whole of it immediatel..
reported on c.a as a contra asset..
CV of cash generating unit is compared to CGU's recoverable amount which is greater of fv- costs to sell and its value in use..