Important Notice:- Please be advised that there will be scheduled downtime across our website from (03/02/2023/12:30 PM GMT) to (06/02/2023/12:30 PM GMT). This is because we are updating our website. We apologize for any inconvenience. For more information, or if you have any questions, please contact the customer support Team at (

Financial Accounting And Reporting Assets Assessment Answer


668 George Street,

Melbourne, VIC 3000

Telephone 28 8 3215 5000


12 May 2018

Mr. Con Pewter

The managing Director

Pewter Ltd.

Level 6, 510 King William Street,

Brisbane QLD 4000

Dear Mr Pewter

Thank you for your response through e-mail. I am working as an accountant with McKenzie and Associates. Manager of the company Ms Maria McKenzie has asked me to reply your email through a letter. As per my understanding the issues mentioned by you are related to –

  • Intangible assets
  • Provisions and contingent liabilities

As the company always provided their clients with various suggestions for making decisions as per the compliance of IFRS, AASB and the Corporation Act 2001, we would like to assure you that we will provide you with the best possible recommendation for accounting treatment of the issues raised by you.

In case of any query, questions or doubts regarding the accounting treatment mentioned above, feel free to contact me through our official mail address or contact number.

Yours sincerely

Ms Emily Edwin


McKenzie and Associates

Copy   Elle Jordan

Enc: Responses to issues

Cc: Maria McKenzie


Intangible assets

The issue mentioned by you regarding the strengthening the environment and record it in the financial statement of the company is related to AASB 138 on Intangible assets (, 2018). An intangible asset is the non-physical assets that have the useful life of more than one year. Goodwill of the business is the intangible asset that is owned and associated with company’s operation. Goodwill enhances the value of the company through increasing its brand value, customer base, location, products, reputation and workforce that may have proven track record of creating income for the company. One of the main factors considered as the goodwill of the company is enhancement of the future economic benefits (Beams,  Brozovsky & Shoulders, 2017). As per the details provided by you the action of the company regarding the efforts of Steve Irwin will strengthen the environmental responsibility image through providing the guarantee of repairing the damage, if any. Therefore, it can be expected that this action will attract more customers in the long run period and will ensure the company’s long term sustainability (AASB 138 - Intangible Assets, 2015). However, in some instances though the expenditure is spend for generating the future economic benefit, it does not meet the recognition criteria required to be recognizes as an intangible asset. These kinds of expenses are known as internally generated goodwill. The internally generated goodwill is not identified as the asset as it is not recognizable source that is it cannot be segregated. Further, it does not arise from the legal rights or contractual obligation that is controlled by company and its cost cannot be measured reliably.  The main issues in recognizing the internally generated goodwill as the intangible assets is identification of when and whether the recognizable asset will generate the economic benefits and recognition of the asset at reliable cost (AASB 138 - Intangible Assets, 2015). Further, in some instances cost required for enhancing or maintaining the internally generated goodwill cannot be segregated from the cost required for daily operation of the business.  In the given case, as per the view of marketing manager the environmental reputation will enhance the image of the company. However, the amount of economic benefits that will be generated through this cannot be measured reliably and there is no surety of when and whether it will generate the benefit (AASB 138 - Intangible Assets, 2015). Therefore, the goodwill will be regarded as internally generated goodwill and will not be recognized in the financial statement of the company as intangible asset.

Provisions and contingent liabilities

As per AASB 137 on Provisions, contingent liabilities and contingent assets, the contingent liability is the expected obligation that may arise from the past events and the existence of the liability will be established only upon non-occurrence or occurrence of 1 or more than 1 tentative future event that is not in control of the company (AASB 137 - Provisions, Contingent Liabilities and Contingent Assets, 2015). The contingent liability is not recognized under the financial statement if the amount of obligation cannot be measured reliably. The contingent liability shall be disclosed through notes to account except where the possibility for economic resource outflow is remote (Sinclair & Keller, 2014). On the other hand, the provisions are the liability different from other liabilities like accruals or trade payables as under provisions there is uncertainty regarding the amount and timing of the payment for settlement of the obligation (Goodwin et al., 2016). The main difference of provision with contingent liability is that the possible obligation under contingent liability is yet to be authenticated regarding whether the obligation will lead to outflow of the economic resources. Here in the stated situation the guarantee provided by Pewter Limited on account of occurrence of any damage shall be disclosed as contingent liability through the notes to the financial statement as it has not yet confirmed as an obligation and therefore the outflow of economic resources are not yet confirmed. However, on confirming of the obligation if the company on account of providing guarantee it shall be recorded as provision in the financial statement if the amount and timing of payment is not confirmed (AASB 137 - Provisions, Contingent Liabilities and Contingent Assets, 2015). If the amount of the obligation and timing of payment is confirmed then it shall be recorded as an expense in the income statement and it will reduce the profit of the company.



AASB 137 - Provisions, Contingent Liabilities and Contingent Assets. (2015). AASB Standard. Retrieved from

AASB 138 - Intangible Assets. (2015). Compiled AASB Standard. Retrieved from (2018). [online] Available at: [Accessed 12 May 2018].

Beams, F. A., Brozovsky, J. A., & Shoulders, C. D. (2017). Advanced accounting. Pearson.

Goodwin, J., Atilgan, Y., Simsir, S.A. & Ahmed, K. (2016). Investor reaction to accounting misstatements under IFRS: Australian evidence.

Sinclair, R.N. & Keller, K.L. (2014). A case for brands as assets: Acquired and internally developed. Journal of Brand Management, 21(4), pp.286-302.


Upload Document Document Unser Evaluion Get Money Into Your Wallet

Cite This work.

To export a reference to this article please select a referencing stye below.

Assignment Hippo (2023) . Retrive from

"." Assignment Hippo ,2023,

Assignment Hippo (2023) . Available from:

[Accessed 03/02/2023].

Assignment Hippo . ''(Assignment Hippo,2023) accessed 03/02/2023.

Buy Financial Accounting And Reporting Assets Assessment Answers Online

Talk to our expert to get the help with Financial Accounting And Reporting Assets Assessment Answers from Assignment Hippo Experts to complete your assessment on time and boost your grades now

The main aim/motive of the finance assignment help services is to get connect with a greater number of students, and effectively help, and support them in getting completing their assignments the students also get find this a wonderful opportunity where they could effectively learn more about their topics, as the experts also have the best team members with them in which all the members effectively support each other to get complete their diploma assignment help Australia. They complete the assessments of the students in an appropriate manner and deliver them back to the students before the due date of the assignment so that the students could timely submit this, and can score higher marks. The experts of the assignment help services at are so much skilled, capable, talented, and experienced in their field and use our best and free Citation Generator and cite your writing assignments, so, for this, they can effectively write the best economics assignment help services.

Get Online Support for Financial Accounting And Reporting Assets Assessment Answer Assignment Help Online

Want to order fresh copy of the Sample Financial Accounting And Reporting Assets Assessment Answers? online or do you need the old solutions for Sample Financial Accounting And Reporting Assets Assessment Answer, contact our customer support or talk to us to get the answers of it.

Assignment Help Australia
Want latest solution of this assignment

Want to order fresh copy of the Financial Accounting And Reporting Assets Assessment Answers? online or do you need the old solutions for Sample Financial Accounting And Reporting Assets Assessment Answer, contact our customer support or talk to us to get the answers of it.

Submit Your Assignment Here

AssignmentHippo Features

On Time Delivery

Our motto is deliver assignment on Time. Our Expert writers deliver quality assignments to the students.

Plagiarism Free Work

Get reliable and unique assignments by using our 100% plagiarism-free.

24 X 7 Live Help

Get connected 24*7 with our Live Chat support executives to receive instant solutions for your assignment.

Services For All Subjects

Get Help with all the subjects like: Programming, Accounting, Finance, Engineering, Law and Marketing.

Best Price Guarantee

Get premium service at a pocket-friendly rate at AssignmentHippo


  • Assignment Writing Guide
  • Essay Writing Guide
  • Dissertation Writing Guide
  • Research Paper Writing Guide


  • Accounts
  • Computer Science
  • Economics
  • Engineering

Client Review

I was struggling so hard to complete my marketing assignment on brand development when I decided to finally reach to the experts of this portal. They certainly deliver perfect consistency and the desired format. The content prepared by the experts of this platform was simply amazing. I definitely owe my grades to them.

Tap to Chat
Get instant assignment help