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Accounting for Intangible Assets
Question: Do you agree or disagree with the managing director’s views and provide an explanation for why he may have taken the view that he has.
I agree with the views of the managing director. He is of the option that non-capital spending in the course of that year has actively contributed to the development of intellectual capital in the company. The reason that may have made him view the spending in this light is because non-capital spending does not meet the capital expenditure criteria. Non-capital expenditure always has a lower cost as well as shorter but useful lifespan. It is an intangible expenditure that contributes a lot in making a company develops.
The managing director also suggests that he expects further increases in market value in the future. In this regard, he does not expec.............
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