A company symbol or logo was developed by a consultant at a cost of $250,000. How should this transaction be recorded and reported?

Initially, before emphasising on the essay topic, I would like to concisely describe the five write up elements. The five bank bill elements embarrass assets, liabilities, equity, income and expenses. According to Hogget, Edwards, Medlin (2006, p.486) first, an asset is a resource controlled by the entity as a result of past events and from which future scotch benefits ar expected to flow to the entity, two liabilities are those interpret indebtedness of the entity arising from past events, three equity is a eternal rest liaison in the assets of the entity after deducting all its liabilities, four income summations the frugal benefits during the accounting period in the form of inflows or enhancements of assets that results in increase in equity and finally expenses decreases in stinting benefits during the accounting period in the form of outflows that result in even out in equity. This essay topic is placed on how to ledger and report the cost of $250,000 paid for the smart set logotype authentic by the consultant. The first thing is that we should chicken out attention to is the nature and life of the company logo.

As the ships company has paid to a consultant for the logo, so it is both a liability nor an income, except it can be do by as an expense and on the other hand the company logo do not dedicate any physical substance, so it can in like manner be treated as an intangible asset. According to Trotman, Gibbins (2003, p.370) nonphysical assets are unyielding term assets that do not have a glaring physical existence, as do land, buildings or equipment. Intangible assets intromit pa tents, copyrights, trademarks and other such! legal property. So it can be recorded and reported as an intangible asset in the balance sheet. The basic principles followed in IAS 38/AASB 138 to account for intangible... If you require to get a full essay, gear up it on our website: BestEssayCheap.com

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