Are Intangible Assets Reported on the Balance Sheet?

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Solution

Intangible assets are only listed in a company’s balance sheet when they are acquired assets and such assets that have a useful life span and identifiable value.

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Q. Under which major head and sub-head of the Assets part of the Balance Sheet will the following be shown:

(i) Intangible Assets; (ii) Intangible Assets under Development; (iii) Investments (more than 12 months); (iv) Deferred Tax Assets (Net); (v) Stores and Spares; and (vi) Loose Tools?

Q. From the Balance Sheet given below, calculate:
(i) Fixed Assets
(ii) Current Assets
(iii) Current Liabilities
(iv) Working Capital

Balance Sheet as at 31^st March, 2018
Liabilities	₹	Assets	₹
Trade Creditors	42,000	Stock in Hand	48,000
Expenses Accrued	3,200	Debtors	36,000
Bank Overdraft	4,800	Prepaid Expenses	400
Long-Term Loan	20,000	Goodwill	20,000
Interest on Loan	1,000	Land	20,000
Capital	93,400	Plant	32,000
		Furniture	8,000
	1,64,400		1,64,400

ABC Company has shareholders' equity of Rs 20,00,000 and total assets of Rs 50,00,000. There is no goodwill on its balance sheet, nor any intangible assets. Its proprietary ratio is:

Q. ABC Company has shareholders' equity of ₹40,00,000 and total assets of ₹1,00,00,000. There is no goodwill on its balance sheet, nor any intangible assets. Its proprietary ratio is:

[2 marks]

The Modern Enterprises reported all assets in the balance sheet at current market value. This action is a violation of:

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