As a graduate accountant, you work for the public accounting firm, Capitol Accountants. One of your clients,West Ltd, is a leading company in the sale of frozen and canned fish produce. These products are sold under
two brand names. Fish caught in southern Australian waters are sold under the brand ‘Antarctic Fresh’(independently valued at $1 million), which is the brand the company developed itself when it commenced
operations and is still used today. Fish caught in the northern oceans are sold under the brand name ‘Tropical Taste’, the brand developed by Fishy Tales Ltd (valued at $800,000). West Ltd acquired all the assets and
liabilities of Fishy Tales a number of years ago when it took over that company’s [url removed, login to view] Ltd has always marketed itself as operating in an environmentally responsible manner, and is an advocate of sustainable fishing. The public regards it as a dolphin-friendly company as a result of its previous
campaigns to ensure dolphins are not affected by tuna fishing. As such, West Ltd incurs large amounts of expenditure on marketing to continue building its brands. In the 2015 financial year alone, West Ltd incurred
$500,000 in marketing costs. West Ltd is looking for information about whether they can capitalise rather than expense these marketing costs.
DUE DATE IS 30TH OF SEPTEMBer
DEATILS ARE GIVEN BY INBOX MSG.
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