Tutorial Questions – Accounting for intangible assets
1) FORUM Discussion:
Reflect on the disclosures required by IAS 38 with regard to intangible assets and
read ONLY the financial statements and notes accompanying Roche’s financial
statements for the financial year 2013. Roche’s financial report for 2013 is
provided on moodle (see folder Unit 3 – Annual Reports; within the section for
Unit 3) and you are NOT expected to print it.
Identify the relevant note(s) and page(s) which provide information with regard to the
recognition and subsequent measurement as well as changes of intangible assets on
Roche’s financial statements.
• Which model Roche is using for subsequent measurement of intangible assets?
• Does the company recognise any internally generated intangible assets?
• Does the company recognise any intangible assets with indefinite useful lives?
• Did the company recognise any new intangible assets this year? If yes, where this
is shown?
2) Critically discuss why managers may have incentives to over or under capitalise
development expenditures. How can they justify their chosen practice? You are
expected to articulate your answers by providing specific examples. (Students are
expected to link this question with the case studies and related discussions in
