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MGT401 Financial Accounting 2 , GDB # 1 Opening date November 18, 2014, Closing date November 20, 2014 (5 marks)

Important announcement

Graded Discussion Board

Financial Accounting II (MGT401)

 

Dear Students!

This is to inform that Graded Discussion Board (GDB) No. 01 will be opened on  November 18, 2014 for discussion and last date for posting your discussion will be November 20, 2014.

Topic/Area for Discussion

 “Intangible Assets”

This Graded Discussion Board will cover first 08 lessons.

Graded Discussion Board

Financial Accounting II (MGT401)

Topic: Intangible assets
 

Question: 
 

K&S (Pvt) Ltd. has recently established its business of readymade garments in Lahore. Mr. Aslam - owner of the company has tried to launch state of the art processes at every step from product design to manufacturing. K&S (Pvt) Ltd. needed funds aggregating to Rs. 2 Million, half of the amount was invested by owner and remaining requirement was fulfilled by obtaining debt from bank. During the financial year 2014-15, K&S (Pvt) Ltd. incurred the costs on:

a)      Preoperative expenses

b)      Promotional activities

c)      Designs and testing of prototypes

d)     legal fee to acquire the copyrights

e)      employee’s training


Required:
 Which of the above mentioned costs are eligible for capitalization as an intangible asset ? Justify your answer by giving valid points.


Important Instructions:

1. The GDB will remain open for 3 working days/ 72 hours.

2. Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.

3. Obnoxious or ignoble answer should be strictly avoided.

4. Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.

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