Get the complete project »
- The Complete Research Material is averagely 54 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦4,000
1.1 BACKGROUND OF THE STUDY
Accounting for intangible asset has gained prominence in the past few decades due to changes in the way the business world operates. Intangible assets are either acquired in a business combination on developed internally. In case of acquisition in a business combination such assets are recorded at their air value, while in case of internally generated intangible assets the assets are recognized at the cost incurred in development phrase. In relation to the development of internally generated intangible assets there are two phrases research phases and development phase. Research phase includes all activities and cost incurred before the intangible assets is commercially feasible, while the development phase include all activities and costs incurred after the asset is established to be commercially feasible. All costs in research phase are expensed in the period incurred while costs incurred in development phase are capitalized. Intangible assets are typically expensed according to their respective life expectancy. Intangible assets have either an identifiable or indefinite useful life. Intangible assets with identifiable useful lives are amortized on a straight line basis over their economic or legal life, which ever is shorter. Examples of intangible assets with identifiable useful like include copyrights and patents intangible assets with indefinite useful lives are reassessed each year for impairment. If an impairment has occurred, then a loss in determined by subtracting the assets fair value from the asset’s book / carrying value. Trademarks and goodwill are examples of intangible assets with indefinite useful lives. Goodwill has to be tested for impairment rather than amortized if impaired, goodwill is reduced and loss is recognized in income statement.
According to International Accounting standards Board Standard 38 (IAS 38) defines an intangible asset as: “an identifiable non-monetary asset without physical substance. This definition is in addition to the standard definition of an asset which requires a past event that has given rise to resource that the entity controls and from which future economic benefits an expected to flow. Thus, the extra requirement for an intangible asset under IAS 38 is identifiable. This criterion refines that an intangible asset is separable from the entity or that it arises from a contractual or right.
According to financial accounting standards Board (FASB) Accounting standard codification 350 (ASC 350) defines a intangible asset as an asset, other than financial asset that lacks physical substance. The lack f physical would therefore seen to be a define characteristic of an intangible asset. Both the (IASB) and (FASB) definition specifically preclude monetary assets in their definition of in intangible asset. This is necessary in or to avoid the classification of items such as accounts receivable, derivatives and cash in the bank as an intangible assets, including: computer, software, copyright and patents.
The international Accounting standards Board (IASB) of some guidance (IAS38) as to how intangible assets should be accounted for in financial statements. In legal intangibles that are developed internally are not recognized and legal intangibles that are purchased from third parties are recognized. Wordings are similar to under generally accepted accounting principles (GAAP), intangible asset after their initial recognition is not allowed. Intangible assets are carried as historical cost less accumulated amortization and impairment.
Intangible assets have been argued to be one possible contributor to the disparity between company value as per their accounting records, and company value as per their market capitalization considering this argument, it is important to understand what an intangible asset truly is in the eyes of an accountant. A number of attempts have been made to define intangible assets. Despite difficulty to carryout in practice the problem there are a number of performance measure of intangible assets presented in the literature also applying them in practice see example mouritse et al, (2003), ratuating et al (2004), currently, there is very little experience on how different organizations are using performance measurement to manage their intangible assets is systematically allocated to expenses allowed to exceed forty years. The process of allocating the cost of intangible assets to expenses is called amortization and companies almost always use the straight line method to amortize intangible assets.
Furthermore, this issues is so important to business organization in that if adequately maintained it bring about good relationship between the organization and the society. In view of this study which is narrowed down to guinness Nigeria Plc can approximately be describe as one of the most prominent and well known company in the country. The company celebrated its 50th year (Golden Jubilee) in the year 2002. Now it is obvious that it has been in existence since the past 53 years in Nigeria and the demand for it product, no doubt has continue to grow and its has indeed remained consistently high all through the years. The company majors in production of small and big Guinness stock, bear, harp, guilder, spark, malta guinness. It also produced satzenbian beer. This company has branches in various parts of the country since early seventies precisely 1974. It first production plant was established at Ikpoba scope of Benin city. This date the company has continued grow and it remains the most dominant and prominent companies in the Brewery industry.
1.2 STATEMENT OF THE PROBLEM
Management accountant have long recognized that for many product the proportion of indirect overhead costs has tended to increase firms, make greater use of intangible investments to produce their input and to manage their business strategies. Such observation driven by increased product, complexity and often arising from the adoption of mass customization strategies led to the development techniques such as activity based costing and the balance score card designed to produce more strategy relevant costing information and key performance indicators than recognized indicators than recognized the intangible value drivers of the business. The problems associated with the research which motivated the researchers to embark in the study are
1 The generally accepted accounting principle recognized as financially relevant accurate event that arise from intangible asset.
2 The GAAP account, process and present there intangible asset related events.
1.3 OBJECTIVE OF THE STUDY
The objective of this work is intended to do the following:
1 To explore the current range of thinking native to intangible assets.
2 To determine how such intangible resources in values, recognized and presented in the financial reporting of companies.
3 To determine whether accounting for intangible assets enhances accountability, transparency, and unproved quantity in reporting financial results of the companies
4 To find out if accounting for intangible asset is cumbersome and create problems
1.4 SIGNIFICANE OF THE STUDY
The significance on the benefits of accounting for intangible asset are:
1 It shows valuation, recognition and presentation of intangible asset.
2 To enhance ac accountability and transparency in reporting
3 It gives the user of the financial statement maximum satisfaction and reliability of the financial statement.
1.5 RESEARCH QUESTION
These are question asked in order to create answer to the research problems. The questions are as follows:
1 Should the generally accepted accounting principles (GAAP) be recognized as financially relevant and accurate event that arise from intangible assets?
2 How should generally accepted accounting principles (GAAP) account process and present these intangible assets.
3 Does accounting for intangible asset enhance accountability transparency and quality in reporting?
4 Does the impact of goodwill as intangible asset provides steady growth and continuous profit when properly analyzed?
5 Does the diversified accounting skill and experience of the accountant help in the account recognition and presentation of intangible assets?
6 Does accounting for intangible asset in an organization increase customer’s patronage?
7 Does an accountant follow the statutory requirement in the preparation of intangible asset account?
8 In accounting, for intangible assets does it creat problem in the preparation.
9 Should organizations have adequate skilled personnel in measuring and evaluating accounting for intangible asset?
10 Does the employment of unqualified staff create problems in accounting for intangible asset?
1.6 RESEARCH HYPOTHESIS
1 Ho: The diversified accounting skills and experience of the accountant does not help in the account recognition and presentation of intangible asset.
Hi: The diversified accounting skills and experience of the
accountant help in the account recognition and presentation of intangible asset.
2 Ho: The generally accepted accounting principles (GAAP) account, process and presentation of intangible asset does not enhance accountability and transparency in reporting.
Hi: The generally accepted accounting principles (GAAP) account, process and presentation of intangible assets enhance accountability and transparency in reporting.
3 Ho: The accountant should not follows the statutory requirement in the presentation of intangible asset.
Hi: The accountant should apply the statutory requirement in the presentation of intangible asset.
1.7 SCOPE OF THE STUDY
The scope of the study of the researcher delimits its study to accounting for intangible assets, the way out (A study of guinness Nigeria Plc Sapele branch DeltaState).
1.8 DEFINITION OF TERM
The following are terms associated with the research work.
1 Intangible Asset (IA) The dictionary defined intangible asset as an asset that is saleable though not material or physical
2 Intellectual capital (IC): is defined as an intangible asset that I not financial or physical and has been a formalized. Captured and leverages to produce a higher valued asset.
3 Goodwill: Goodwill is arguable the most conforming intangible asset to (GAAP) it is the excess it four value over book in a purchase transaction.
4 Financial statement: According to dictionary of finance defines it as written record of the financial status of and individual association or business organization.
5 Financial Reporting; It essentially involves preparing and issuing financial statement (J.C. Aroh 2010)
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
SIMILAR ACCOUNTING FINAL YEAR PROJECT RESEARCH TOPICS
1. AN APPRAISAL OF INTERNAL AUDIT FUNCTIONS IN FINANCIAL MANAGEMENT OF TERTIARY INSTITUTIONS: EVIDENCE FROM UNIVERSITY OF UYO, UYO.» ABSTRACT Internal audit system is very important to any organization whether public or private. This is because it allows for orderliness and efficien...Continue Reading »
2. DIVIDEND ANNOUNCEMENT SECURITY PERFORMANCE AND CAPITAL MARKET EFFICIENCY, THE NIGERIA PERSPECTIVE» CHAPTER ONEINTRODUCTION1.1 BACKGROUND TO THE PROBLEMThe availability of information is crucial to the successful pursuance of virtually every human en...Continue Reading »
3. CORPORATE ENVIRONMENTAL REPORTING PRACTICES: A COMPARATIVE STUDY OF NIGERIAN AND SOUTH AFRICAN FIRMS» GLOSSARY OF TERMS Accounting: Is seen as the art of recording, classifying and summarising in a significant manner and in terms of money, transactions...Continue Reading »
4. INTERNAL AUDIT AS A TOOL IN ACHIEVING ORGANIZATIONAL OBJECTIVES (A CASE STUDY OF FIRST BANK NIGERIA PLC)» ABSTRACT This research work which is aimed at examining the internal audit as a tool in achieving organizational objective, for the purpose of clarity...Continue Reading »
» ABSTRACT For any organization to function effectively and efficiently to achieve its desired goals and objectives, such an organization must have an e...Continue Reading »
» INTRODUCTION 1.1.0 Brief Description of the Building Type Primary Health Care (PHC) is driven by a political philosophy that emphasizes a radical chan...Continue Reading »
7. IFRS ADOPTION AND VALUE RELEVANCE OF ACCOUNTING INFORMATION: A STUDY OF LISTED INSURANCE FIRMS IN NIGERIA» CHAPTER ONE INTRODUCTION 1.1 Background to the Study Accounting literatures on value relevance research dates back to early 1960s with the remarkable ...Continue Reading »
8. EFFECTS OF POOR NUTRITIONAL NEEDS ON ACADEMIC PERFORMANCE OF PRIMARY SIX PUPILS IN SOME SELECTED PRIMARY SCHOOLS IN IMILLIKE TOWN» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Food is one of the basic needs of man. Our body needs food to do its work. Food is vital to life ...Continue Reading »
» ABSTRACT The face is generally recognized that small scales industries constane the major of business organization in Nigeria. The problem tend to inv...Continue Reading »
10. FACTORS MILITATING AGAINST THE PERFORMANCE OF STUDENTS IN INTRODUCTORY TECHNOLOGY IN JUNIOR SECONDARY SCHOOL LEVEL IN NIGERIA (A CASE STUDY OF SECOND...» ABSTRACT It is disheartening to say that until recently, Introductory Technology Education was not paid attention to by the introducers and the acquir...Continue Reading »