Non-current Assets - Intangible

NotesQuiz

The key assertions here are existence and valuation

The intangibles are:

  • Goodwill

  • Intangibles with a market value

  • Development costs

Goodwill Proforma
FV of consideration 1,000
FV of NCI 400
FV of Net Assets acquired (1200)
Impairment (100)
Goodwill 100

Substantive tests for Goodwill

  • Check amount paid for the business acquired

  • Check the reasonableness of the net assets acquired value

  • Check the goodwill calculation

  • Check for any impairment indicator (no amortisation for goodwill)

Substantive tests for Intangibles

  • Check to purchase invoice

  • Check amortisation calculation

  • Check for indicators of impairment

  • Ensure correct accounting (eg Development costs not research costs)

NotesQuiz