1. Explain 3 differences between Property, Plant and Equipment (PPE) and Intangi
ID: 2557751 • Letter: 1
Question
1. Explain 3 differences between Property, Plant and Equipment (PPE) and Intangible Assets.
2. After reading this chapter, how would you advise your friends in the following cases. Please EXPLAIN your responses using appropriate legal/accounting terms.
a) Your friend, John, tells you that he wishes to open a coffee shop called, Starbucks.
b) Your friend, Jill, tells you that she will use the "swoosh" logo on her coffee mugs and sell it on Amazon.
c) Your friend, Alex, tells you he can copy the latest music album of Justin Timberlake on his CDs and sell it for a very cheap price on Amazon
Explanation / Answer
1. a) Former is charged depreciation while the later is charged amortisation.
b) PPE is dealt with by IAS 16 while intangible assets are dealt with by IAS 38.
c) Former is physical assset while later is not.
2.
a) Starbucks is registered trademark of starbucks corporation. John will be advised not to name the coffee shop Starbucks.
b) Jill cannot use the logo as it is owned by Nike.
c) Alex is advised not to copy the album as it will cause copyrights' infringement.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.