You have been approached by a large accounting firm to provide advice in relation to Virtual assets. In particular, the managers of the firm have requested that you provide a report outlining the following: • what are Virtual assets?How are they different to the commonly understood notion of intangible assets? • Do these items meet the definition criteria for assets contained in the Framework? • Do these items meet the recognition criteria for assets contained in the Framework? • Should these items be recognised on the financial statements or would disclosure in the notes be sufficient? • Is income earned in a virtual world “real”? If so, should such profits be reported? • If we are required to recognise these items on the financial statements then we need to be able to measure them. What measurement model would you recommend? In completing this report, students can certainly include information relating to online gaming but remember that this report is being prepared for an accounting firm whose greater concern would be other types of Virtual assets. You must therefore not confine your discussion to online gaming, but it does provide a useful and fairly clear starting point
Attachments:
2013 assm2 AC….pdf