According Vietnam Audit Standards8.2 Jason Pharma incurred the following cost in this year related to a new drug:-Research for new formular: $2.425.000-Development of a new formula: $1.600.000-Legal and filing fees for a patent for the new formular: $60.000The development costs were incurred after technological and commercial feasibility was established andafter the future economic benefits were deemed probable. The project was completed and the new drugwas patented before year end.Required: Caculate the amount of expense (reported in the IS) and asset arised (reported in the SOFP) inthis activity.

This question deals with the Vietnam accounting standard 4 "Intangible fixed assets" As per…

Answered: According Vietnam Audit Standards 8.2…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2 Required information [The following information applies to the questions displayed below.) Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures: Basic research to develop the technology Engineering design work Testing and modification of the prototype Development of a prototype device t Legal fees for patent application Legal fees for successful defense of the new patent Total $ 3,400,000 1,080,000 540,000 340,000 74,000 34,000 $ 5,468,000 During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized. 2. How much should Satellite Systems report as research and development expense in the income statement? Research and development expense
Required information [The following information applies to the questions displayed below] Dow Chemical Company provides chemical, plastic, and agricultural products and services to various consumer markets The following excerpt is taken from the disclosure notes of Dow's annual report DOW CHEMICAL Notes to the Financial Statements (excerpt) Dow Chemical had accrued obligations of $381 million for environmental remediation and restoration costs, including $40 million for the remediation of Superfund sites. This is management's best estimate of the costs for remediation and restoration with respect to environmental matters for which the Company has accrued liabilities, although the ultimate cost with respect to these particular matters could range up to twice that amount. Inherent uncertainties exist in these estimates primarily due to unknown conditions, changing governmental regulations and legal standards regarding liability. and evolving technologies for handling site remediation and…
The Board of Directors of Fizzer Co. recently approved the allocation of up to Php60 million of capital to be invested in a vaccine manufacturing facility to address the immediate need for COVID-19 immunization. As of today, the management of Fizzer Co. is assessing the best place to establish its vaccine manufacturing facility in which Philippines, India and Mexico are currently being considered by the management. General background COVID-19 is expected to last for a period of five-years from the time that vaccines are available and require highly specialized machines with no other use or resale value after the end of its useful life Philippines (30% tax rate) Fizzer have an existing facility in the Philippines which will require significant modifications for it to meet the rigorous safety requirements for the production of COVID-19 vaccines such that: Renovation costs is expected to be at Php10 million New machineries amounting to Php50 million will need to be imported from China…
During 2020, BLACKPINK INC. incurred costs to develop and produce a routine, low-risk computer software product as follows: • Completion of detailed program design or working model- 1,000,000 • Cost incurred for coding and testing to establish technological feasibility- 200,000 • Other coding costs after the establishment of technological feasibility- 2,000,000 • Other testing costs after the establishment of technological feasibility- 1,500,000 • Costs of producing product masters for training materials- 2,500,000 • Duplication of computer software and training materials from product master- 3,000,000 • Production overhead- 1,000,000 • Packaging product- 500,000 • Administrative overhead- 750,000 • Promotional cost of the finished software- 200,000 • Abnormal amount of wasted materials and labor costs- 250,000 In the December 31, 2020 balance sheet, what amount should be reported as inventory?
This question relate with MFRS 116 (Property, Plant and Equipment)
The ML Company imported a new machine at a peso equivalent of $1,320,000. The company has to pay additional cost of importing the asset such as $40,000 import duties and $60,000 non-refundable purchase taxes. Costs of transporting the asset was $20,000 and cost of preparing the asset for its intended use include $12,000 installation and $8,000 testing and trial run costs. How much is the initial cost of the new machine?
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The Board of Directors of Fizzer Co. recently approved the allocation of up to Php60 million of capital to be invested in a vaccine manufacturing facility to address the immediate need for COVID-19 immunization. As of today, the management of Fizzer Co. is assessing the best place to establish its vaccine manufacturing facility in which Philippines, India and Mexico are currently being considered by the management. General background COVID-19 is expected to last for a period of five-years from the time that vaccines are available and require highly specialized machines with no other use or resale value after the end of its useful life Philippines (30% tax rate) Fizzer have an existing facility in the Philippines which will require significant modifications for it to meet the rigorous safety requirements for the production of COVID-19 vaccines such that: Renovation costs is expected to be at Php10 million New machineries amounting to Php50 million will need to be imported from China…
A company is analyzing the acquisition of a concession. The government provides it for 6 years for an initial investment of $50,000,000 and the export equipment will cost another $50,000,000 (which is acquired in the initial period of the project), with the commitment that in year 8 it will reforest for $250,000,000. The annual income (from year 1 to 6) is $50,000,000. The IOT (Internal rate of opportunity) is 20% per year. The IRR (A.I.R.), which is greater than 10%, of this project, is:

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