Intangible Assets, IAS 38 Essay Example | Topics and Well Written Essays - 1250 words

Intangible Assets, IAS 38 - Essay Example Another criterion of identifying these assets is from contractual or other legal rights. Examples of these intangible assets would include patents, customer lists, copyrights and computer software. Some of these can be included in the financial statements of a given firm. The sale of computer software would indeed be included in a financial statement. Computer software is a person’s intelligence converted into programs acceptable to the computer platform. Intelligence is an asset that one would not see, touch or physically measure yet the products developed from the same are of great value (Alexander, Britton, & Jorissen, 2010). Looking at these intangible assets in this perspective, that they can be converted onto tangible assets then one would rightly argue that they should be included in the financial statements of the company. Internally generated brands are those products that are unique to a given firm only. The uniqueness comes into play owing to the fact that they are generated right within the company. They are not bought from outside then sold from the firm but are those generated from within the company (ibid). They are born of the intangible assets within the firm. Software manufacturing companies are most commonly known for this. Examples of these are Avast, Kaspersky, as well as Avira. These are software manufactured by different companies thus the difference in uniqueness. Lots of debates have been put forward criticizing the inclusion of these internally generated brands into the financial statements. Whichever way one decides to look at it, their inclusion would have advantages and disadvantages which are discussed in the following discourse. The main advantage lies on the fact that not a lot of monetary resources would be used in their creation. The normal monthly salary of the employee is all it takes to make an employee working in a given firm employ the best of his/her intelligence to the firm. The resulting products from an

Howard Street Jewelers Case Study Example | Topics and Well Written Essays - 250 words

Howard Street Jewelers - Case Study Example This gave her a good chance of covering up her fraudulent actions. Many frauds of this nature are made possible by ignorance of owners when it comes to studying books of accounts and awarding of a lot of trust to employees which is dangerous. The fraud was detected due to the receipts from the shop that showed high costs for such a small business. Studying of the account books by Alvin more often also allowed them to detect the fraud. The Levi’s should have paid attention to Betty’s lifestyle as it was changing inconcurently with her earnings. The increase in costs of operation for the shop should have also been a sufficient heads up. The ratios of costs of operation and the size of the business are the ones that raised an alarm to the accountant. In addition, the shop was facing downward movement in terms of profits and earnings. The business was going downhill. The cash shortages were not directly related to the fraud. The reason why businesses have cash shortages even if there is no theft of cash is because of the exaggerated receipts that show high operational costs. The accountant does not bear any responsibility because he is an external accountant and doing an audit for a private business is not one of his legal duties. He is only expected to do it if contracted by the owners of the private business (Petrucelli