Sid Berhad year end is 31 December 2020. The accountant of Sid Berhad has asked for your opinion on the accounting treatment of the following items: (ii) Sid Berhad brand name has generated a lot of customers. The directors have decided to recognise its internally generated brand as an intangible asset in the financial statements as at 31 December 2020. The brand is estimated at RM3 million. Required: Advise Sid Berhad’s accountant on the accounting treatments for all the above- mentioned items. Your answer shall make reference to relevant MFRS Standards.
Sid Berhad year end is 31 December 2020. The accountant of Sid Berhad has asked for your opinion on the accounting treatment of the following items: (ii) Sid Berhad brand name has generated a lot of customers. The directors have decided to recognise its internally generated brand as an intangible asset in the financial statements as at 31 December 2020. The brand is estimated at RM3 million. Required: Advise Sid Berhad’s accountant on the accounting treatments for all the above- mentioned items. Your answer shall make reference to relevant MFRS Standards.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sid Berhad year end is 31 December 2020. The accountant of Sid Berhad has asked for your opinion on the accounting treatment of the following items:
(ii) Sid Berhad brand name has generated a lot of customers. The directors have decided to recognise its internally generated brand as an intangible asset in the financial statements as at 31 December 2020. The brand is estimated at RM3 million.
Required:
Advise Sid Berhad’s accountant on the accounting treatments for all the above- mentioned items. Your answer shall make reference to relevant MFRS Standards.
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