non-current assets figure. This is another inconsistency that I don't understand. Please explain how this practice can be in line with IFRS requirements. Would I be right in thinking that, as with property, plant and equipment, we can use the fair value model to measure intangible assets?
non-current assets figure. This is another inconsistency that I don't understand. Please explain how this practice can be in line with IFRS requirements. Would I be right in thinking that, as with property, plant and equipment, we can use the fair value model to measure intangible assets?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:You are the financial controller of Omega, a listed entity which prepares consolidated financial
statements in accordance with International Financial Reporting Standards (IFRS). The chief
executive officer (CEO) of Omega has reviewed the draft consolidated financial statements of
the Omega group and of a number of the key subsidiary companies for the year ended 31
March 2018 None of the subsidiaries are listed entities but all prepare their financial
statements in accordance with IFRS. The CEO has sent you an email with the following
queries:
I
Query one
When I read the discdosure note relating to intangible non-current assets in the consolidated
financial statements. I notice that this figure includes brand names associated with
subsidiaries which we ve acquired in recent years. However, the brand names which are
associated directly with products sold by Omega (the parent entity) are not included within the
non-current assets figure. This is another inconsistency that I don't understand. Please
explain how this practice can be in line with IFRS requirements. VWould I be right in thinking
that, as with property. plant and equipment, we can use the fair value model to measure
intangible assets?
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