CPA Financial Accounting

Your tasks

Your tasks entail a journal article study and an annual report assessment, to be completed in a report format.

B1. Journal article study Engage with the following journal article:

Sinclair, Roger, and Kevin Lane Keller. 2017. "Brand Value, Accounting Standards, and Mergers and Acquisitions: ‘the Moribund Effect.`" Journal of Brand Management 24 (2): 178-92.

Craft your written responses to the following requirements:

Explain the accounting treatment for marketing-related assets such as brands and trademarks, both initially and subsequently (i.e., measurement and recognition), in alignment with IFRS3 Business Combinations, IAS 38 Intangible Assets, and IAS 36 Impairment of Assets.

Detail the accounting approaches for marketing-related assets advocated by Sinclair and Keller (2017), emphasizing distinctions between (1) and (2).

Conduct research to delve deeper into accounting for marketing-related assets and marketing activities. Present your discoveries with proper in-text citations and referencing. (This section should incorporate insights from at least 3 reference items.)

In your perspective, how should companies handle accounting for marketing-related assets? Would you propose any alterations to the recognition and measurement practices stipulated by the standard setter? What additional disclosure requirements would you suggest? Justify your stance with reference to the qualitative characteristics outlined in the Conceptual Framework.

B2. Annual report assessment Select an ASX-listed company for this task and obtain its annual report(s).

Choose one company from the provided list. (Up to 5 groups can select each company on a first-come, first-serve basis. Please sign up at Blackboard => Assignment Group Sign Up.)

Adairs Limited - Annual report 2020 Bega Cheese Limited - Annual report 2021 Best & Less Group - Annual report 2022 Breville Group Limited - Annual report 2022

Alternatively, locate a company independently. Your chosen company must disclose marketing-related assets in its financial statements.

After acquiring the annual report, compile your written responses to the following requirements:

Based on the annual report(s) of your selected company, delineate the nature of marketing-related assets held by the company and elucidate how these assets are recognized and measured. (If the business combination that generated the assets occurred in a prior year, you may need to consult earlier annual reports for relevant data.)

Apply your recommendations from item (4) above to the selected company. For instance, if you advocate for additional disclosure, draft a sample disclosure for the chosen company. If you propose recognition of accretion, present the journal entries and outline the method for measuring the gain.

B3. References Furnish a list of publication details for all materials referenced in the report. Further information on the Chicago referencing style can be accessed from the Curtin library website.

B4. Appendix Include a copy of the balance sheet, income statement, and accounting policies pertaining to business combinations, intangibles, and impairment from the annual report(s) of your chosen company.