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appendix 1). Since the book value is net after depretiation for previous years has been deducted (walker, 2006), giving a result of ￡340. Which is then writen off in the profit and loss account under expence while deducting from the assets in balace sheet according to the accounting treatment. The net book value of ￡3,060 is subtrated from the offer received of ￡3,800 resulting in a profit of ￡740.

In this circumstance, the company should accept the offer since they are making a profit of ￡740. However the company must take the historical cost concept and going concern concept into consideration as it records values when first acquired. This is to prevent the restate of changes in value. So at the end of the year the asset is recorded in the balance sheet at cost of ￡3060. No account should be taken of the increase in value from 3060 to 3800. Therefore in the following year the company records the sale of ￡3,800. This gives rise to a profit of ￡740 which is recognised in that year.

According to the calculation in appendix 2 this illustrates that the local retail group will be making a profit of ￡60,000 since the firm knew the value of the tangible net assets is worth 500,000 and it's making an offer of 440,000. On the other hand, the competitor should take the comparability and realisation accounting concept into consideration since it is not recognised as a loss. These concepts implies the ability to compare similar offer with other firm in order to gain the best offer possible as well as be able to realise at what point to asses profit. As a recommendation the competitor is advice not to accept this offer due to complication occurring within their financial statement since a loss is gained which could later impact their performance.

According to accounting treatment 'where a tangible fixed asset is revalued its carrying amount should be its current value at the balance sheet' (Financial reporting standard, 1999).

As per accounting standard 5, copyright is identified as intangible asset (Financial repoting standard, 1994). For this reason the calculation of depreciation (as shown in appendix 3) must be conducted in order to gain the accurate net book value. This will then help allocate the accurate account entries for this entity to the appropriate financial statement. According to accounting treatment the costs of intangible assets have to be capitalised as they have to be recorded as assets not expense (Day, 2008). The account entries for the financial year of 30th September,2010 will be entired in profit and loss account as well as balance sheet. Therfore the depreciation of ￡19,000 will be charged in profit and loss account, as the fair cost of using the copyright of the book. The remaining net book value of ￡76,000 will be shown in the balance sheet.

According to financial standard 5 ' The Board believes that the value of intangible assets at any one date eventually disappears and that the recorded costs of intangible assets should be amortized by systematic charges to income over the periods estimated to be benefited.' (Financial reporting standard, 1994).

This illistrates that the publishing company is able to write off this intangible asset for this period of 5 years.

信息披露的主要财务报表附注——DISCLOSURE NOTES TO THE MAIN FINANCIAL STATEMENTS

The following financial statement shows the entries of depreciation and net b本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。