7. KNJ Berhad developed a trademark and copyrights with total costs of RM50,000. The company spent RM35,000 for the trademark and RM15,000 for copyrights. This amount includes the general administrative cost of 10%. On 1 March 2017, the company registered the intangible assets with Intellectual Property Corporation Malaysia (IPCM) and paid registration fee of RM5,000 each. The company also paid RM8,000 and RM3,000 for the cost of defending the trademark and copyrights respectively. Copyright has a legal life of 50 years while trademark has unlimited useful life. At the end of the financial year on 31 December 2017, the company carried out an impairment test on its intangible assets. It was found that the recoverable amount of the trademark and copyrights are RM40,000 and RM25,000 respectively. It is the policy of the company to amortize its intangible assets using straight line method. On 10 January 2018, the company decided to sell the trademark to another company at RM55,000. Required: Determine the cost of intangible assets for KNJ Berhad on 1 March 2017 with reference to MFRS 138 Intangible Assets Calculate the carrying amount of the intangible assets as at 31 December 2017. Prepare the extract of Statement of Profit and Loss for the year ended 31 December 2017. (a) (b) (c)
7. KNJ Berhad developed a trademark and copyrights with total costs of RM50,000. The company spent RM35,000 for the trademark and RM15,000 for copyrights. This amount includes the general administrative cost of 10%. On 1 March 2017, the company registered the intangible assets with Intellectual Property Corporation Malaysia (IPCM) and paid registration fee of RM5,000 each. The company also paid RM8,000 and RM3,000 for the cost of defending the trademark and copyrights respectively. Copyright has a legal life of 50 years while trademark has unlimited useful life. At the end of the financial year on 31 December 2017, the company carried out an impairment test on its intangible assets. It was found that the recoverable amount of the trademark and copyrights are RM40,000 and RM25,000 respectively. It is the policy of the company to amortize its intangible assets using straight line method. On 10 January 2018, the company decided to sell the trademark to another company at RM55,000. Required: Determine the cost of intangible assets for KNJ Berhad on 1 March 2017 with reference to MFRS 138 Intangible Assets Calculate the carrying amount of the intangible assets as at 31 December 2017. Prepare the extract of Statement of Profit and Loss for the year ended 31 December 2017. (a) (b) (c)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:7.
KNJ Berhad developed a trademark and copyrights with total costs of RM50,000. The company spent
RM35,000 for the trademark and RM15,000 for copyrights. This amount includes the general administrative
cost of 10%. On 1 March 2017, the company registered the intangible assets with Intellectual Property
Corporation Malaysia (IPCM) and paid registration fee of RM5,000 each. The company also paid RM8,000
and RM3,000 for the cost of defending the trademark and copyrights respectively. Copyright has a legal life
of 50 years while trademark has unlimited useful life.
At the end of the financial year on 31 December 2017, the company carried out an impairment test on its
intangible assets. It was found that the recoverable amount of the trademark and copyrights are RM40,000
and RM25,000 respectively. It is the policy of the company to amortize its intangible assets using straight
line method. On 10 January 2018, the company decided to sell the trademark to another company at
RM55,000.
Required:
Determine the cost of intangible assets for KNJ Berhad on 1 March 2017 with reference to MFRS
138 Intangible Assets
Calculate the carrying amount of the intangible assets as at 31 December 2017.
Prepare the extract of Statement of Profit and Loss for the year ended 31 December 2017.
(a)
(b)
(c)
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