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Chapter 08 - Accounting for intangibles
1. Intangible assets that are amortised are no longer subjected to impairment testing.
True False
2. Research of market potential prior to the launch of a product is permissible to be capitalised as an intangible
asset.
True False
3. Internally generated brands, mastheads, publishing titles and customer lists are permitted to be recognised as
intangible assets.
True False
4. AASB 138 permits the use of revaluation model for intangible assets if there is an active market to determine
fair value.
True False
5. The revaluation model requires all intangible assets in the same class to have a fair value determined by
reference to an active market.
True False
6. If the fair value of a revalued intangible asset can no longer be determined by reference to an active market,
AASB 136 requires the use of the cost model.
True False
7. Internally generated identifiable intangible assets may be recognised for financial accounting purposes in
Australia.
True False
1
8. Goodwill is a term used for the composite asset of identifiable intangibles:
True False
9. There are only rare occasions when an identifiable intangible asset should be amortised.
True False
10. International convergence has meant that there is no longer one specific standard related to intangibles:
True False
11. Development costs are less likely to meet the test for deferral than research costs:
True False
12. Compared to the requirement in the US, the treatment of research and development costs in Australia is less
conservative (that is, likely to result in higher profits):
True False
13. AASB 138 requires that all intangibles, whether purchased or internally generated, be capitalised.
True False
14. Continuously Contemporary Accounting emphasises an entity's ability to adapt. Therefore goodwill is
considered an important asset in this model:
True False
15. Intangible assets without a limited useful life cannot be recorded under AASB 138 as they cannot be
amortised.
True False
2
16. According to AASB 138 on intangible assets, if an entity buys another entity separate values can be
assigned to purchased goodwill and to a brand name:
True False
17. Expenditure on an intangible asset that was initially expensed may be recognised as part of an intangible
asset at a later date.
True False
18. AASB 138 prohibits the recognition of intangible assets using the revaluation model.
True False
19. Identifiable intangible assets are those intangible assets that:

A. Have been purchased by the entity from external parties.
B. Have an unlimited life.
C. Can have a value placed on them separately from other assets of the entity.
D. Cannot be separately sold.
E. All of the given answers.
20. Examples of intangible assets include:

A. Loyal customers.
B. Patents and trademarks.
C. Provisions.
D. Loyal customers, patents and trademarks.
21. Examples of elements of a business that commonly make up goodwill are:

A. Patents and licences.
B. Trademarks and brand names.
C. Research and development.
D. Established reputation and loyal customers.
3
22. Because intangible assets have no physical form:
A. They are not subject to the recognition criteria of other assets and may be recorded if they satisfy the three
elements of the definition.
B. They must be expensed immediately as assets must be able to be measured.
C. They have no real value and should be excluded from accounting reports.
D. They cannot be sold separately and must all be classified as unidentifiable.
E. None of the given answers.
23. An intangible asset may be recorded.

A. If acquired from an external party at a cost.
B. If it is internally generated and fits the definition of an asset and meets the associated recognition criteria.
C. At a value other than cost if that value more reliably records the worth of the intangible asset.
D. At the cost of the asset, which must exclude any additional expenditure required to prepare the asset for use.
E. If acquired from an external party at a cost, and at the cost of the asset, which must exclude any additional
expenditure required to prepare the asset for use.
24. In order to determine whether or not expenditure should be treated as an intangible asset, the relevant test to
apply in Australia is:
A. It should be recognised when (a) it is definite that future economic benefits will eventuate or (b) the asset
possesses a cost or other value that can be measured reliably.
B. It should be recognised if (a) the expenditure is with an external party in an arm's length transaction for a
separately identifiable intangible asset or (b) the intangible asset arises as the difference between the net
tangible assets of an entity and the price paid for that entity.
C. It should be recognised if (a) it is part of a specified plan by management to develop and maintain a
separately identifiable asset or (b) the intangible asset was purchased in an arm's length transaction and is
actively traded in a market.
D. It should be recognised when and only when (a) it is probable that future economic benefits will eventuate
and (b) the asset possesses a cost or other value that can be measured reliably.
25. AASB 138 states that intangible assets:

A. May not be revalued and must be amortised over their useful lives.
B. Are only able to be revalued if they have been internally generated and there is an active market for them.
C. May only be revalued to their fair value as assessed by a licensed valuer.
D. may be measured by using either the cost model or the revaluation model.
4
26. AASB 138 defines development as:
A. The activities undertaken with specific commercial objectives, including original research, to develop plans
or designs for new products or significant improvements to existing products.
B. The application of research findings or other knowledge to a plan or design for the production of new or
substantially improved material, devices, processes, systems or services prior to the commencement of
commercial production or use.
C. The activities undertaken to translate research findings into feasible projects for subsequent development for
commercial objectives such that the recoverable amount is expected to be greater than the cost.
D. The activities undertaken with the expectation by management that future economic benefits in the form of
new products or improvements to existing products are likely to result, based on research completed to date.
27. What is the test for deferral of research costs as required by AASB 138?
A. Research costs can be deferred (recorded as an asset) when it is probable that the project they are applied to
will bring future economic benefits.
B. Research costs may not be deferred unless it is almost certain that the project they are applied to will bring
future economic benefits.
C. Research costs may not be recorded as an intangible asset.
D. Research costs may be deferred if the entity can demonstrate that an intangible asset exists and that it will
generate future economic benefits.
E. Research costs may be recorded as an intangible asset if the company intends to develop the product further.
28. Which of the following statements is correct with respect to research and development expenditures in
accordance with AASB 138?
A. Activities aimed at obtaining knowledge that is likely to produce a viable commercial product can be
capitalised.
B. Formulation, design, evaluation and final selection of alternative materials to be used in producing a viable
commercial product can be capitalised.
C. Design, construction and operation of a pilot plant that is not of a scale economically feasible for commercial
production can be capitalised.
D. Search for, evaluation and final selection of, applications of research findings and other knowledge can be
capitalised.
5
29. The requirement of AASB 138 in relation to the amortisation of development cost is that:
A. It is to be amortised straight-line over a period not greater than 20 years.
B. It is to be amortised from the time of deferral so as to match the cost to the related benefits.
C. It is to be amortised using an accelerated depreciation rate over a period not exceeding 10 years.
D. It is to be amortised from the time the asset is available for use and shall reflect the consumption of the
economic benefits by the entity.
30. Glass 4 Windows is involved in a research and development project to create a filtering window that
removes the need for curtains. For the current year ended 30 June 2004 expenditure on the project is as follows:
Research $235,000
Development costs $350,000
The window is expected to earn revenues of $70,000 per year for the 10 years commencing 1 July 2004. Assuming straight-line amortisation, how
much of the research and development cost should be expensed this period and what amount should be amortised in the year ended 30 June 2007?
A. Expensed in 2004: $58,500 Amortisation in 2007: $58,500
B. Expensed in 2004: $235,000 Amortisation in 2007: $35,000
C. Expensed in 2004: $235,000 Amortisation in 2007: $28,000
D. Expensed in 2004: $350,000 Amortisation in 2007: $23,500
31. Walking on Air is developing a new form of individual transport that will act like a personal hovercraft.
Costs for the year ended 30 June 2004 are:
Research $950,000
Development costs $650,000
Due to the high individual cost of items sales of this 'prototype' model will be small and generate $100,000 per year over the next 4 years. Following
that time, a new and cheaper consumer model will be under production based on the research developed for the prototype; however, it will require
additional development expenditure. How much of the research and development cost should be expensed in the period ended 30 June 2004 and what
amount should be amortised in the year ended 30 June 2006 (rounded to the nearest dollar)?
A. Expensed in 2004: $1 200,000 Amortisation in 2006: $100,000
B. Expensed in 2004: $950,000 Amortisation in 2006: $216,667
C. Expensed in 2004: $950,000 Amortisation in 2006: $65,000
D. Expensed in 2004: $1,200,000 Amortisation in 2006: $30,000
E. Expensed in 2004: $160,000 Amortisation in 2006: $160,000
6
32. There is a concern that research and development may be reduced as a result of the new requirements in
AASB 138 because:
A. Companies will not have the cash available to pay for the research expenses up-front.
B. Recognising expenses early will allow for larger profits later, which will help smaller firms.
C. The 'horizon problem' suggests managers will not invest in long-term projects that do not immediately
increase profits.
D. Shareholders are only interested in short-term profits and will not be impressed by strategies that attempt to
increase the long-term value of their shares.
33. Castle Co Ltd is working on three research projects. Project Jonah is government-sponsored research on
synthesising currently available research results on the possible triggers of asthma attacks. Project Beta involves
researching the genetic tags associated with heart disease based on the genome project. A test to identify the
predisposition to heart disease in children has been developed and will be on the market in 2003. Since 2001
research and development expenditures on this project are applied development costs only. Project Sigma is
cutting edge research being conducted to try and discover a means of 'disassembling' molecules and then
'reassembling' them in their original form. The company hopes that this work will lay the basis for future
dreams of teleportation as a method of transport. Details of expenditures and recoverable amounts expected
beyond a reasonable doubt at this time are:
Actual Budget
$000 $000
Project 2001 2002 2003 2004
Jonah
Development expenditure 20 15 5 0
Expected revenue inflows 10 0 0 0
Beta
Sigma
What is the total research and development deferral for each project as at the end of the year 2002?
A. Jonah: $15,000 Beta. $90,000 Sigma. $0
B. Jonah: $20,000 Beta. $50,000 Sigma. $30,000
C. Jonah: $15,000 Beta. $70,000 Sigma. $50,000
D. Jonah: $0 Beta. $90,000 Sigma. $0
7
34. Serendipity Ltd is working on two independent research and development projects. Project A has recently
been fruitful and the resulting product has been marketed, unfortunately with limited success. Development of
the product is continuing in an effort to improve its marketability. Project B is due for product release in one
year's time. The initial marketing surveys and forward contracts suggest that the outcome for this product is
very favourable. The following information relates to the expenditures for the current period and budgeted
figures for the next 3 years. All research costs in prior periods were expensed. The budgeted figures are
considered accurate beyond a reasonable doubt.
Actual $000 Budg

et
$000
Project 2003 2004 2005 2006
A
Research 12 0 0 0
B
Research 41 0 0 0
What is the research and development deferral for each project in 2003?
A. Project A. $5,000 Project B. $0
B. Project A. $47,000 Project B. $131,000
C. Project A. $30,000 Project B. $90,000
D. Project A. $62,000 Project B. $131,000
35. AASB 138 describes the distinction between the treatment of internally generated goodwill and purchased
goodwill (as well as other intangibles) as arising because:
A. The two different sources of goodwill result in two different types of asset.
B. Internally generated goodwill is developed in order to be sold, so its value will be recognised at that time.
C. Internally generated goodwill cannot be reliably measured.
D. Recording purchased goodwill could lead to the manipulation of profit and asset amounts.
8
36. The treatment of internally generated goodwill varies from purchased goodwill under AASB 138 in that:
A. Purchased goodwill is not amortised whereas internally generated goodwill is assumed to be maintained
indefinitely.
B. Purchased goodwill may be recorded as an asset, whereas internally generated goodwill may not.
C. Internally generated goodwill is to be amortised over a period of no greater than 20 years, whereas purchased
goodwill may not be recorded.
D. Purchased goodwill is to be expensed in the period it is bought whereas internally generated goodwill is to be
deferred and amortised over a period of no less than 20 years.
37. Purchased goodwill is recognised as the amount of:

A. The excess of the cost of acquisition incurred by an acquirer over the fair value of the identifiable net assets
acquired.
B. The difference between the cost of acquisition of a subsidiary and the realisable value of net assets of the
subsidiary.
C. The lower of the sum of related expenditures on advertising and promotion undertaken in the last 2 years by
the subsidiary being purchased and the independent valuation of the market value of that subsidiary's goodwill.
D. The excess of the cost of acquisition of another entity by an acquiring entity over the recoverable value of
the identifiable net assets acquired.
E. The excess of the cost of acquisition incurred by an acquirer over the fair value of the identifiable net assets
and contingent liabilities acquired.
38. Far-flung Co Ltd purchases Local Co Ltd for the purchase consideration of:
Cash $100,000
Shares in Far-flung Co Ltd 50,000 shares with a market value of $1.60
Land Carrying value of $90,000Fair value of $100,000
Far-flung incurred legal fees of $6,000 to complete the acquisition. Local Co Ltd had the following assets and liabilities at the time of the purchase:
Carrying amount Recoverable amount Fair value
Assets:
Land 100,000 150,000 200,000
Machinery 50,000 80,000 85,000
Cash 20,000
Liabilities:
Loan 105,000
What is the value of goodwill, if any?

A. $0
B. $80,000
C. $141,000
D. $86,000
9
39. Earth Ltd acquired Moon Ltd on 1 July 2009 for the sum of $100,000. On the same date Moon Ltd has the
following assets and liabilities:
Carrying amount Recoverable amount Fair value

Assets:
Land 100,000 130,000 150,000
Machinery 50,000 30,000 40,000
Cash 20,000
Liabilities:
Loan 105,000
Contingent liabilities 80,000
What is the value of goodwill, if any?

A. Not required to recognise goodwill.
B. $35,000
C. $75,000
D. Surplus of $5,000
40. Buster Ltd had purchased goodwill to the value of $100,000 recorded in its consolidated financial
statements. The goodwill has been determined to have an indefinite useful life. However, one year later Buster
Ltd's cash generating units has been determined to have incurred an impairment loss of $13,000. What is the
appropriate action for Buster limited to comply with AASB 138 "Intangible Assets" and AASB 136
"Impairment of Assets"?
A. Write-off goodwill in its entirety as goodwill no longer exists.
B. Recognise impairment loss of $13,000 and credit goodwill.
C. Amortise goodwill for 20 years using straight-line method.
D. Recognise impairment loss of $13,000 and credit equity.
41. The release of AASB 138 has had what impact on the methods of amortising goodwill?
A. The choice to use the inverted sum-of-digits method was phased out over a period of 15 years, to be replaced
by straight-line depreciation.
B. The option to amortise goodwill was removed and replaced with annual impairment testing.
C. Entities were given the option of continuing to amortise goodwill or to subject it to impairment testing each
year.
D. All entities were required to amortise goodwill over 20 years using the straight-line method to allow
comparisons.
10
42. AASB 138 contains some elements that seem to be reactions to opportunistic behaviour by preparers of
accounts and to the degree of uncertainty surrounding goodwill as an unidentifiable intangible asset. These
elements include:
A. The prohibition on recording internally generated goodwill.
B. The requirement to use a specific rate of amortisation.
C. The specification of impairment testing.
D. The prohibition on recording internally generated goodwill and the specification of impairment testing.
43. The argument by Pacific Dunlop (1994) is that the accounting treatment of goodwill, particularly the
requirement to amortise it over 20 years, places Australian companies at a competitive disadvantage
internationally. Miller (1995) analyses this view and argues that:
A. The research that has shown accounting figures to be used in a mechanistic way suggests that Australian
firms will be disadvantaged relative to international competitors in the takeovers market.
B. Sophisticated users will be aware that there are no direct cash-flow effects of the different amortisation
treatments for goodwill. The effect of differential taxation treatments (since the ATO does not permit a
deduction for the amortisation of goodwill) will, however, have a negative impact on Australian companies.
C. The efficient market hypothesis maintains that the capital market will impound accounting information
efficiently into the price of shares. Therefore if Australian companies are required to report lower earnings
through goodwill amortisation they will be valued at a lower amount than they would otherwise be by investors
in the capital market. This would reduce their ability to bid for other companies in a takeover situation.
D. The amortisation of goodwill can be a very significant cost for companies that have purchased a reasonable
number of subsidiaries. Companies that are active in the takeover market in this way will be negatively
impacted by the reporting of lower profits as a result of Australia's requirement that they amortise goodwill over
a maximum of 20 years, whereas other countries permit a 40 year or unlimited life for goodwill.
44. The approach to accounting for intangibles raises some issues because:
A. Assets are now subject to impairment testing, which will remove the professional judgement required for
amortisation.
B. Consistency has now been achieved regarding research and development meaning entities cannot claim to
have expended resources on potential benefits while other entities could not.
C. Many intangible assets will not be recognised under this approach, particularly in regard to internally
generated assets.
D. Intangible assets are more likely to be recorded at fair values because of the active market criteria, which
may overstate asset values.
11
45. Prior to the introduction of AASB 138 companies had found ways to circumvent the requirements of the
revised (1996) version of AASB 1013. These methods included.
A. Using the inverted sum-of-digits amortisation technique.
B. Calculating goodwill as the difference between the carrying value of the net assets of the acquired company
and the consideration paid.
C. Requiring the purchased company to make excessive provisions for restructuring costs to be undertaken after
the company is purchased.
D. Attributing the excess of the cost of acquisition over the fair value of the net identifiable assets of the
company acquired to brands, licences and other identifiable intangible assets.
46. Prior to the introduction of impairment testing companies had attempted to manipulate their accounts
through amortisation:
A. Because where managers were rewarded based on profits attained it was in their best interests to reduce
expenses while they held that position.
B. Because contractual arrangements such as debt covenants often required asset values to be maximised.
C. Recording higher amortisation expenses allowed profits to be reduced, thus allowing tax payments to be
minimised without any cash outflows.
D. Because where managers were rewarded based on profits attained it was in their best interests to reduce
expenses while they held that position; and because contractual arrangements such as debt covenants often
required asset values to be maximised.
47. During 2001 the Financial Accounting Standards Board in the United States indicated they would look to
change a requirement for the treatment of goodwill. That change is:
A. To remove the requirement to amortise goodwill and replace it with a requirement to write-down goodwill to
reflect any impairment in value.
B. To allow the recognition of internally generated goodwill.
C. To extend the period over which goodwill may be amortised.
D. To allow the inverted sum-of-digits method of amortisation.
48. Big Ltd has purchased 100 per cent of Little Ltd for a cash payment of $800,000. The additional costs to Big
Ltd to complete the purchase were $3,000. An extract from the balance sheet for Little Ltd at the date of
acquisition shows:
$ $
12
Assets
Current assets
Cash 12,000
Net accounts receivable 25,000
Inventory 80,000
Total current assets 117,000
Non-current assets
Land and buildings (net) 200,000
Vehicles (net) 90,000
Equipment (net) 157,000
Total non-current assets 447,000
Total assets 564,000
Liabilities
Accounts payable 8,000
Loan 100,000
Total liabilities 108,000
Net assets 456,000
Additional information:
The assets and liabilities of Little Ltd are stated at fair value except that:
land and buildings have a fair value of $300,000
accounts receivable have a fair value of $20,000
Little owns a licence that has not been recorded in the accounts. Its fair value is $150,000.
What is the amount of purchased goodwill, if any, that has been acquired by Big Ltd?
A. $242,000
B. $344,000
C. $252,000
D. $102,000
49. As part of adopting IFRS, goodwill acquired in a business combination is no longer amortised. Instead, the
acquirer shall test goodwill for impairment (AASB 3 "Business Combinations"). When is goodwill considered
to be impaired?
A. If the recoverable amount of the cash generating unit is greater than the unit's carrying amount.
B. If the recoverable amount of the cash generating unit is less than the unit's carrying amount.
C. If the value in use of the cash generating unit is greater than the unit's carrying amount.
D. If the fair value less costs to sell is greater than the unit's carrying amount.
13
50. Which of the following statement(s) in regard to goodwill is/are correct in accordance with AASB 136
A. An impairment loss must be recognised when the carrying amount of a cash-generating unit exceeds it
recoverable amount.
B. An impairment loss recognised may be reversed in subsequent period.
C. Value in use is the present value of future cash flows expected to be derived from a cash-generating unit.
D. All of the given answers.
E. An impairment loss must be recognised when the carrying amount of a cash-generating unit exceeds it
recoverable amount and an impairment loss recognised may be reversed in subsequent period.
51. Which of the following statements in regard to goodwill is/are correct in accordance with AASB 136
A. Goodwill may be amortised when it has a finite life.
B. Goodwill is subjected to impairment testing every three years.
C. Upward revaluation of goodwill is permitted as long as it is a reversal of prior years' impairment losses.
52. After initial recognition, the acquirer shall recognise goodwill at:
A. Historical cost.
B. Fair value.
C. Cost less accumulated amortisation.
D. Cost less accumulated impairment losses.
53. Which of the following intangible assets should be recognised in the balance sheet?
A. Internally generated goodwill in excess of recoverable amount.
B. Licenses with active market.
C. Purchased trademark.
E. Licenses with active market and purchased trademark.
14
54. Which of the following combination best demonstrates the value of goodwill?
I. Purchase consideration of subsidiary
II. Book Value of net assets held by subsidiary
III. Fair value of net identifiable assets
IV. Contingent liabilities
A. I less II
B. I less III
C. I less (II-IV)
D. I less (III-IV)
55. Broadbeach Ltd is a manufacturing company with three subsidiaries. The following information relates to
the goodwill account of Broadbeach Ltd for the year ended 30 June 2009:
(in dollars) Goodwill Accumulated impairment loss Carrying amount of CGU Recoverable amount ofCGU
Mantra Ltd 50,000 10,000 250,000 270,000
Oceania Ltd 40,000 NIL 310,000 250,000
Wave Ltd 60,000 NIL 450,000 600,000
In accordance with AASB 136, what is the net effect of above goodwill accounts on the income statement and balance sheet of Broadbeach Ltd?
Income Statement Balance Sheet
A. Increase Increase
B. Decrease Decrease
C. Increase Decrease
D. Decrease Increase
Ans: B
56. Broadbeach Ltd is a manufacturing company with three subsidiaries. The following information relates to
the goodwill account of Broadbeach Ltd for the year ended 30 June 2009:
(in dollars) Goodwill Accumulated impairment loss Carrying amount of CGU Recoverable amount ofCGU
Mantra Ltd 50,000 10,000 250,000 270,000
Oceania Ltd 40,000 NIL 310,000 250,000
Wave Ltd 60,000 NIL 450,000 600,000
What is the carrying amount of goodwill as at 30 June 2009 consistent with AASB 136 "Impairment of Assets"?
A. Zero
B. $100 000
C. S140 000
D. $150 000
15
57. Which of the following statements is correct with respect to intangible assets?
A. Internally generated publishing titles may be revalued if fair value is determined by reference to an active
market.
B. Purchased goodwill should be amortised over a period of twenty years.
C. Internally generated brands are not recognized as intangible assets because expenditures in these assets are
not distinguishable from the cost of developing the business as a whole.
D. Internally generated brands are recognized as intangible assets because expenditures in these assets are not
distinguishable from the cost of developing the business as a whole.
58. Which of the following expenses are likely to satisfy the definition of an asset, and hence may be capitalised
as an intangible asset?
A. Expenses incurred to develop a brand name;
B. Advertising expenses
C. Research expenses
D. None of the given answers.
59. Palm Beach Ltd has a cash generating unit (CGU) and has been assessed for impairment and it has
determined an impairment loss of $100,000.
The following information relates to the assets as at 30 June 2012.
Carrying Amount RecoverableAmount

Buildings 800 000 900 000
Equipment 200 000 150 000
Goodwill 50 000
In accordance with AASB 136 "Impairment of Assets" what should be the carrying amount of buildings as at 30 June 2012?
A. $720,000
B. $760,000
C. $800,000
D. $900 000
16
60. In accordance with AASB 136 "Impairment of Assets" what should be the carrying amount of equipment as
at 30 June 2012?
A. $0
B. $100,000
C. $150,000
D. $190,000
61. Shelley Beach Ltd has one cash generating unit (CGU) and it has been determined that the CGU has
incurred an impairment loss of $80,000 for the year ended 30 June 2012.
The carrying amounts of the assets as at 30 June 2012 are as follows:
Carrying Amount
Buildings $300 000
Equipment 300 000
Goodwill 20 000
Total $620 000
In accordance with AASB 136 "Impairment of Assets", what should be the carrying amounts for buildings, equipment and goodwill as at 30 June
2012, respectively?
A. $240 000; $300 000; $0;
B. $260 000; $260 000; $20 000;
C. $270 000; $270 000; $0;
D. $300 000; $300 000; $20 000;
62. Shelley Beach Ltd has one cash generating unit (CGU) and it has been determined that the CGU has
incurred an impairment loss of $80,000 for the year ended 30 June 2012.
The carrying amounts of the assets as at 30 June 2012 are as follows:
Carrying Amount
Buildings $300 000
Equipment 300 000
Goodwill 20 000
Total $620 000
In accordance with AASB 136 "Impairment of Assets", what is the appropriate journal entry to recognize the impairment loss for Shelley Beach
Ltd?
A.
Dr Impairment loss 80 000
Cr Accumulated impairment loss -Buildings 30 000
Cr Accumulated impairment loss -Equipment 30 000
Cr Accumulated impairment loss -Goodwill 20 000
17
B.
Dr Impairment loss – Identifiable intangible assets 80 000
C.
Dr Impairment loss – Identifiable intangible assets 60 000
Dr Impairment loss – Goodwill 20 000
Cr Accumulated impairment loss -Goodwill 20 000
D.
Dr Impairment loss 80 000
Cr Buildings 30 000
Cr Equipment 30 000
Cr Goodwill 20 000
63. Discuss the benefits of subjecting goodwill to impairment testing as opposed to amortisation. In your
answer, consider the relevance and reliability qualitative characteristics of financial information.
64. Explain how AASB 138 "Intangible assets" may disadvantage Australian start-up companies with heavy
research and development activities. Contrast this with US start-up companies.
18
65. Outline the requirements of AASB 138 on recognition and measurement of research and development
activities.
66. Discuss the considerations outlined in AASB 138 on revaluation of intangible assets. What are the
implications of this standard on the relevance of financial information?
67. Discuss the factors considered to determine amortisation of deferred development costs.
68. Explain why research expenditures and expenditures on internally generated such as, brands, mastheads and
publishing titles are not capitalised regardless of whether they are likely to generate future economic benefits.
19
69. Explain why intangible assets are required to be reported as a separate class of asset in the statement of
financial position.
70. Discuss the implications of the 2007 global financial crisis on the valuation of intangibles.
20
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The exile of Rama had been too much for the doting old Maharajah.
[29] Weighed down by sorrow, he soon succumbed to his troubles,
and Bharata, who was still absent at Giri-braja, was hastily
summoned to take up the regal office. He, accompanied by his
brother Satrughna, hurried to the capital, and finding, on his arrival,
how matters really stood, heaped reproaches upon his wicked,
ambitious mother, indignantly refusing to benefit by her artful
machinations. In a transport of grief Bharata “fell to the earth sighing
like an enraged snake,” while Satrughna, on his part, seized the
deformed slave-girl Manthara, and literally shook the senses out of
her. In Rama’s absence, Bharata performed his father’s obsequies
with great pomp. The dead body of the late king, which had been
preserved in oil, was carried in procession to the river side and there
burnt, together with heaps of boiled rice and sacrificed animals. A
few days later the sraddha ceremonies for the welfare of the spirit of
the departed king were performed, and, as usual, costly presents,—
money, lands, houses, goats and kine, also servant-men and
servant-maids were bestowed upon the fortunate Brahmans.
When this pious duty, which occupied thirteen days, had been
fulfilled, affairs of State demanded attention. Bharata, although
pressed to do so, resolutely declined to accept the sceptre, and
resolved to set out, with a vast following, on a visit to Rama in his
retreat, hoping to persuade him to abandon his hermit-life and
undertake the government of the realm. Great preparations had to
be made for this visit to Rama, which was a sort of wholesale exodus
of the people of Ayodhya of all ranks and occupations. A grand army
was to accompany Bharata, and the court, with all the ladies of the
royal family, including the no-doubt-reluctant Kaikeyi, were to swell
the procession. A road had to be made for the projected march of
this host; streams had to be bridged, ferries provided at the larger
rivers, and able guides secured. When the road was ready and the
preparations for the journey completed, chariots and horsemen in
thousands crowded the way, mingled with a vast multitude of citizens
riding in carts. Artificers of every kind attended the royal camp.
Armourers, weavers, tailors, potters, glass-makers, goldsmiths and
gem-cutters, were there; so also were physicians, actors and
shampooers, peacock-dancers and men whose profession it was to
provide warm baths for their customers. Of course the Brahman
element was strongly represented in this great procession from the
flourishing city to the solitudes of the forest. Bharata’s march is
described at great length by the poet; but only one incident need be
mentioned here. On the way the hermit Bharadvaja, desirous of
doing Bharata honour, and probably not unwilling to display his
power, invited him and his followers, of whom, as we have seen,
there were many thousands, to a feast at his hermitage. At the
command of the saint the forest became transformed into lovely
gardens, abounding in flowers and fruit. Palaces of matchless beauty
sprang into existence. Music filled the cool and perfumed air. Food
and drink, including meat and wine, appeared in profusion:—soups
and curries are especially mentioned, and the flesh of goats and
bears, deer, peacocks and cocks; also rice, milk and sugar. In
addition to all this, a host of heavenly nymphs from Swarga
descended to indulge in soft dalliance with the ravished warriors of
Bharata’s army.
“Then beauteous women, seven or eight,
Stood ready by each man to wait.
Beside the stream his limbs they stripped,
And in the cooling water dipped,
And then the fair ones, sparkling-eyed,
With soft hands rubbed his limbs and dried,
And sitting on the lovely bank
Held up the wine-cup as he drank.”
—Griffith.
For one day and one night the intoxicating enjoyment continued; and
then, at the word of command, all the creations of the sage’s power
vanished, leaving the forest in its wonted gloom.
Having taken a respectful leave of the mighty ascetic, Bharata and
his followers threaded their way through the dense forests towards
the Mountain Chitrakuta and the River Mandakini. After a long march
they at last found the object of their desire, the high-souled Rama,
“seated in a cottage, bearing a head of matted locks, clad in black
deerskin and having tattered cloth and bark for his garment.” When
Rama heard of his father’s death he was deeply moved and fell
insensible upon the ground, “like a blooming tree that hath been
hewn by an axe.” The loving Vaidehi (Sita) and the brothers
Lakshmana and Bharata sprinkled water on the face of the prostrate
man and restored him to animation, when he at once burst into loud
and prolonged lamentations. Presently Rama pulled himself together
and duly performed the funeral rites, pouring out libations of water
and making an offering of ingudi fruits to the spirit of his departed
father. These offerings were not worthy of being presented to the
manes of so great a man as Dasahratha; but were justifiable, under
the circumstances of the case, on the accepted principle that “that
which is the fare of an individual is also the fare of his divinities.”[30]
Bharata and the rest, respectfully sitting before Rama with joined
hands, entreated him, with the greatest humility, to undertake the
reins of government; but he was not to be persuaded to do so. He
would not break the resolution he had made, nor would he be
disloyal to his dead father’s commands. Then Javali, a Brahman
atheist, insisting that there was and could be no hereafter, that
Dasahratha, once his sire, was now mere nothing, advised the
prince to yield to the reasonable wishes of the living and return with
them to rule over the kingdom of his ancestors. Rama, however,
warmly rebuked the atheist for his impiety, and all that Bharata could
accomplish was merely to induce him to put off from his feet a pair of
sandals adorned with gold, which he (Bharata) carried back with him
in great state to the deserted Ayodhya—now inhabited only by cats
and owls—as a visible symbol of his brother Rama, in whose name
he undertook to carry on the affairs of the State until the appointed
fourteen years of exile should have run their course.
The incidents connected with Rama’s exile to the forests, his life and
rambles at Chitrakuta, Bharata’s imposing march through the same
wooded country which the exiles had traversed, affords the poet of
the “Ramayana” rare opportunities of displaying his love for the
picturesque and his strong natural leaning towards the serene, if
uneventful, life of the hermit. Often in these early forest rovings, and
indeed throughout the fourteen years of exile, does Rama, or some
other one, linger to note and admire the beauties of woodland and
landscape, and to hold loving communion with the fair things of field
and forest. Though he praises the cities, and pictures their grandeur
of gold and gems, it is plain throughout that the poet’s heart is in the
woods, displaying on his part an appreciation of the charms of nature
and scenery, very remarkable, indeed, when we consider how slowly
the taste for the beauties of inanimate nature was developed in
Europe. After Bharata’s return to Ayodhya, Rama and his
companions moved further southwards, in the direction of the great
forest of Dandhaka, which extended indeed as far as the Godavari.
In their wanderings they came to the abode of a certain ascetic
whose wife, having performed severe austerities for ten thousand
years, was privileged, during ten years of drought, to create fruits
and roots for the sustenance of the people and to divert the course
of the river Jumna, so that its waters should flow by the thirsty
asylum of the hermits. This ancient dame took a great fancy to
Vaidehi, and, woman-like, gave her fair disciple a worthy gift,
consisting of fine apparel, of beautiful ornaments, a precious
cosmetic for the beautification of her person, and a rare garland of
flowers. Nor was the old lady contented until she had seen the effect
of her present on Janaka’s charming daughter, who had pleased her
much by her good sense in affirming that “the asceticism of woman
is ministering unto her husband.”
Wheresoever the exiles turned their steps, in these almost trackless
forests, they were told of the evil doings of the Rakshasas, who not
only interrupted the sacrifices, but actually carried off and devoured
the anchorites. Very curious, too, were the ways in which some of
these Rakshasas compassed the destruction of the saints. One of
them, the wily Ilwala, well acquainted with Sanskrit, would assume
the form of a Brahman and invite the hermits to a sraddha feast. His
brother, in the assumed form of a sheep, would be slaughtered and
cooked for his guests. When they had enjoyed their repast the cruel
Ilwala would command his brother Vatapi to “come forth,” which he
would do unreluctantly, and with a vengeance, bleating loudly and
rending the bodies of the unhappy guests, of whom thousands were
disposed of in this truly Rakshasa fashion. It is noteworthy that those
ascetics who had, by long and severe austerities, acquired a goodly
store of merit, might easily have made short work of the Rakshasas;
but, on the other hand, if they allowed their angry passions to rise,
even against such impious beings, they would, while punishing their
tormentors, have inevitably lost the entire advantage of their long
and painful labours. Hence many of the hermits made a direct
appeal to Rama for protection.
Entering the forest of Dandhaka the exiles encountered a huge,
terrible and misshapen monster, besmeared with fat and covered
with blood, who was roaring horribly with his widely distended mouth,
while with his single spear he held transfixed before him quite a
menagerie of lions, tigers, leopards and other wild animals. This
awful being rushed towards the trio, and, quick as thought, snatched
up the gentle Vaidehi in his arms, bellowing out “I am a Rakshasa,
Viradha by name. This forest is my fortress. Accoutred in arms I
range (here), feeding on the flesh of ascetics. This transcendantly
beauteous one shall be my wife. And in battle I shall drink your
blood, wretches that ye are.” At this juncture, Rama, as on some
other trying occasions, gave way to unseasonable lamentations and
tears; but Lakshmana, always practical, bravely recalled him to the
necessity of immediate action. The Rakshasa, having ascertained
who his opponents were, vauntingly assured them that, having
gratified Brahma by his asceticism, he had obtained this boon from
him, that no one in the world could slay him with weapons; and he
mockingly advised the princes to renounce Sita and go their way. But
Rama’s wrath was now kindled, and he began a vigorous attack
upon the monster, piercing him with many arrows. A short, though
fierce, combat ensued, the result being that the Rakshasa seized
and carried off both Rama and Lakshmana on his ample shoulders.
His victory now seemed complete, and Sita,—who had apparently
been dropped during the combat,—dreading to be left alone in the
terrible wilderness, piteously implored the monster (whom she
insinuatingly addressed as the “best of Rakshasas”) to take her and
to release the noble princes. The sound of her dear voice acted like
a charm upon the brothers, and, with a vigorous and simultaneous
effort, they broke both the monster’s arms at once, and then
attacked him with their fists. They brought him to the ground
exhausted, and Rama, planting his foot upon the throat of his
prostrate foe, directed Lakshmana to dig a deep pit for his reception,
and when it was ready, they flung him into it. The dying monster,
thus overcome, though not with weapons, explained that he had
been imprisoned in that dreadful form of his by the curse of a famous
ascetic, and was destined to be freed from it only by the hand of
Rama. With this explanation the spirit of the departed Viradha
passed into the celestial regions.
Rama, with his wife and brother, now sought the hermitage of the
sage Sarabhanga, and on approaching it, a strange, unexpected and
imposing sight presented itself to Rama’s view:—Indra, attended by
his court, in conversation with the forest sage! The god of heaven, in
clean apparel and adorned with celestial jewels, was seated in a
wondrous car drawn by green horses up in the sky. Over him was
expanded a spotless umbrella, and two lovely damsels waved gold-
handled chowrees above his head. About him were bands of
resplendent celestials hymning his praises.
At Rama’s approach the god withdrew and the sage advised the
prince to seek the guidance of another ascetic named Sutikshna,
adding, “This is thy course, thou best of men. Do thou now, my child,
for a space look at me while I leave off my limbs, even as a serpent
renounces its slough.” Then kindling a sacrificial fire, and making
oblations to it with the appropriate mantras, Sarabhanga entered the
flames himself. The fire consumed his old decrepit body, and he was
gradually transformed, in the midst of the flames, into a splendid
youth of dazzling brightness, and, mounting upwards, ascended to
the heaven of Brahma. After Sarabhanga had left the earth in this
striking manner, bands of ascetics waited on Rama, reminded him of
his duty as a king, and solicited his protection against the
Rakshasas. As Rama and his companions wandered on through the
forests another wonder soon engaged their attention. Sweet music
reached them from beneath the waters of a charming lake covered
with lotuses, and on inquiring about the strange phenomenon, a
hermit told them that a great ascetic had formed that lake. By his
fierce austerities, extending over ten thousand years, he had
acquired such a store of merit that the gods, with Agni at their head,
began to fear that he desired a position of equality with themselves.
To lure him away from such ideas they sent him five lovely Apsaras
to try the power of their charms upon him. Sage though he was, he
succumbed to their allurements, and now, weaned from his old
ambitions, he passed his time in youth and happiness—the reward
of his austerities and yoga practices—in the company of the
seductive sirens whose sweet voices, blending with the tinklings of
their instruments, came softly to the ears of the wandering princes.
Sita, who had confidently followed her husband, like his very
shadow, through all these adventurous years in the forest, seems at
length to have been somewhat shaken by the very risky encounter
with Viradha, of which she had been an unwilling and terrified eye-
witness, in which her own person had been the object of contention,
and which had threatened, at one critical moment, to end very
tragically for her and her loved ones. Under the influence of these
recent and impressive experiences, Sita ventured, in her gentle,
womanly way, to suggest to her husband the advisability of avoiding
all semblance of hostility towards the Rakshasas. There were, she
timidly assured her husband, three sins to which desire gave rise:
untruthfulness, the coveting of other men’s wives, and the wish to
indulge in unnecessary hostilities. Of untruthfulness, and of allowing
his thoughts to stray towards other women, Sita unhesitatingly
exonerated her lord; but she artfully insinuated that, in his dealings
with the Rakshasas, he was giving way to the sin of provoking
hostilities without adequate cause, and she advised his laying aside
his arms during his wanderings in the forest; since the mere carrying
of bows and arrows was enough to kindle the wish to use them. To
give point to this contention, Vaidehi related how, in the olden time,
there lived in the woods a truthful ascetic whose incessant
austerities Indra desired, for some reason or other, to frustrate. For
the attainment of his end the king of heaven visited the hermit in the
guise of a warrior, and left his sword with him as a trust.
Scrupulously regardful of his obligation to his visitor, the ascetic
carried the sword with him wherever duty or necessity directed his
footsteps, till constant association with the weapon began to
engender fierce sentiments, leading eventually to the spiritual
downfall of the poor ascetic, whose ultimate portion was hell. Rama
received Sita’s advice in the loving spirit in which it was offered, and
thanking her for it, explained that it was his duty to protect the saints
from the oppression of the evil Rakshasas, and that Kshatriyas
carried bows in order that the word “distressed” might not be known
on this earth.
Several years of exile slipped away, not unpleasantly, in the shady
forests through which the royal brothers roamed from hermitage to
hermitage, always accompanied by the lovely and faithful Sita,
whose part throughout is one of affectionate, unfaltering and
unselfish devotion to her husband. On the banks of the Godavari,
Lakshmana, who has to do all the hard work for the party, built them
a spacious hut of clay, leaves and bamboos, propped with pillars and
furnished with a fine level floor, and there they lived happily near the
rushing river. At length the brothers got involved in a contest with a
brood of giants who roved about the woods of Dandhaka, delighting,
as usual, in the flesh of hermits and the interruption of sacred rites.
This time it was a woman who was at the bottom of their troubles.
Surpanakha, an ugly giantess and sister of Ravana, charmed with
the beauty and grace of Rama, came to him, and, madly in love,
offered to be his wife. But Rama in flattering terms put her off, saying
he was already married. In sport, apparently, he bid her try her luck
with Lakshmana. She took his advice, but Lakshmana does not
seem to have been tempted by the offer, and, while artfully
addressing her as “supremely charming and superbly beautiful lady,”
advised her to become the younger wife of Rama, to whom he
referred her again. Enraged by this double rejection, the giantess
attempted to kill Sita, as the hated obstacle to the fulfilment of her
desires. The brothers, of course, interposed, and Lakshmana,
always impetuous, punished the monster by cutting off her nose.
Surpanakha fled away to her brother Khara, and roused the giant
Rakshasas to avenge her wounds. These terrible giants possessed
the power of changing their forms at will; but their numbers and their
prowess were alike of little avail against the valour and skill of Rama,
who, alone and unaided,—for he sent Lakshmana away with Sita
into an inaccessible cave,—destroyed fourteen thousand of them in
a single day. The combat, which was witnessed by the gods and
Gandharvas, Siddhas and Charanas, is described at great length,
and the narrative is copiously interspersed with the boastful
speeches of the rival chiefs. In the bewildering conflict of that day his
fourteen thousand assailants poured upon Rama showers of arrows,
rocks, and trees. Coming to close quarters they attacked him
vigorously with clubs, darts, and nooses. Although hard pressed and
sorely wounded, the hero maintained the conflict with undaunted
courage, sending such thousands of wonderful arrows from his bow
that the sun was darkened and the missiles of his enemies warded
off by them. Finally Rama succeeded in laying dead upon that awful
field of carnage nearly the entire number of his fierce assailants.
Khara, the leader of the opposing host, a worthy adversary and
possessed of wondrous weapons, still lived. Enraged at, but
undaunted by, the wholesale destruction of his followers, Khara
boldly continued the fight. In his war-chariot, bright as the sun, he
seemed to be the Destroyer himself, as he fiercely assailed the
victorious Rama. With one arrow he severed the hero’s bow in his
hand; with seven other shafts like thunder-bolts he severed his
armour joints, so that the glittering mail fell from his body. He next
wounded the prince with a thousand darts. Not yet overcome,
however, Rama strung another bow, the mighty bow of Vishnu, and
discharging shafts with golden feathers, brought Khara’s standard to
the ground. Transported with wrath at this ill-omened event, Khara
poured five arrows into Rama’s bosom. The prince responded with
six terrible bolts, some of them crescent-headed. One struck the
chief in the head, two of the others entered his arms, and the
remaining three his chest. Following these up with thirteen of the
same kind, Rama destroyed his enemy’s chariot, killed his horses,
decapitated his charioteer, and shattered his bow in his grasp. Khara
jumped to the ground armed with a mace, ready to renew the
conflict. At this juncture Rama paused a moment to read the
Rakshasa a homily on his evil doings; the latter replied with fierce
boasts, and hurled his mace at Rama, who cut it into two fragments
with his arrows as it sped through the air. Khara now uprooted a lofty
tree and hurled it at his foe; but, as before, Rama cut it into pieces
with his arrow ere it reached him, and with a shaft resembling fire put
a period to the life of the gallant Rakshasa. At this conclusion of the
conflict the celestials sounded their kettle-drums, and showered
down flowers upon the victorious son of Dasahratha. Thus perished
the Rakshasa army and its mighty leader:
“But of the host of giants one,
Akampan, from the field had run,
And sped to Lanka to relate
In Ravana’s ear the demon’s fate.”
—Griffith.
This fugitive made his way to the court of Ravana, the king of the
giants, and related to him the sad fate of his followers. Close on the
heels of Akampan came Surpanakha herself, with her cruelly
mutilated face. Transported with rage at the destruction of his armies
and at sight of the disfigured countenance of his sister, the terrible
Rakshasa chief vowed vengeance on Rama and Lakshmana. But
the necessity for great caution in dealing with such valorous foes
was apparent, and Ravana did not seem over-anxious to leave his
comfortable capital, Lanka, in order to seek out the formidable
brothers in the woods of Dandhaka. But Surpanakha, scorned and
mutilated, was thirsting for an early and bitter revenge. Reproaching
her brother for his unkingly supineness, she artfully gave him a
description of Sita’s beauty, far superior to that of any goddess,
which served to kindle unlawful desires in his heart. She referred to
Vaidehi’s golden complexion, her moon-like face, her lotus eyes, her
slender waist, her taper fingers, her swelling bosom, her ample hips
and lovely thighs, till the giant was only too willing to assent to her
suggestion, that the most effectual and agreeable revenge he could
take for the destruction of his hosts, and the cruel insults to his sister,
would be to carry off the fair Sita, by stratagem, from the arms of her
devoted husband, and thus add the lovely daughter of Janaka to the
number, not very small, of the beauties who adorned his palace at
Lanka. We shall presently see that the plot was ingeniously contrived
and too successfully carried out.
How conveniently the race of Rakshasas could assume at will the
forms in which they chose to appear, we know already. Taking
advantage of this faculty of metamorphosis, a Rakshasa named
Maricha, in obedience to Ravana’s orders, showed himself near
Rama’s hermitage, in the shape of a wonderful golden deer, spotted
with silver, having horns resembling jewels, a belly like a sapphire,
and sides like madbuka flowers. The strange creature captivated the
fancy of Sita, and she was so eager to possess it, alive or dead, that
Rama was induced to go in pursuit of it. Suspecting mischief from
this unusual appearance, Rama left his brother with Sita,
commanding him on no account to quit her side until he returned
from his pursuit of the jewelled deer. The chase led him to a
considerable distance from the hermitage. Weary of his endeavours
to secure the deer, Rama grew angry, and, with one of his flaming
arrows, pierced it in the breast. It bounded off the ground to the
height of a palm tree and, in the act of dying, began to cry, exactly in
the voice of Rama, “Ah! Sita; Ah! Lakshmana.” The words reached
the hermitage, as they were intended to do, and Sita, in an agony of
terror, implored Lakshmana to go to the aid of his brother, who
seemed to be in some dire trouble. Lakshmana, however, protested
that it was all illusion, and refused to believe that Rama could be in
any real danger; for, as he assured the trembling wife, “even the
Almighty Himself with the celestials and the three worlds cannot
defeat him” (Dutt, 609). But Vaidehi took another view of the matter,
and turning sharply upon her brother-in-law accused him roundly of
desiring the destruction of Rama in order that he might gratify an
improper wish to possess her himself. This, indeed, she said, must
have been the reason that brought him all the way from Ayodhya.
What, if any, grounds the charming lady may have had for this
accusation does not appear. They could have been known only to
herself and to Lakshmana, who, with joined hands, humbly
reproached her for her cruel words, and bending low before her went
off, with a heavy heart, in search of his brother.
In a garment (probably a saree) of yellow silk, Sita sat alone at the
door of her thatched cottage, weeping bitterly, when Ravana
presented himself before her, in the guise of a pious medicant.
Ravished by her beauty, this pious medicant began, without
ceremony, to praise the various charms of Sita’s person with the
most reprehensible license of detail. Nor did he stop there, but telling
her that she had carried away his heart, as a stream carries away its
banks, invited her to accompany him out of the gloomy forest,
tenanted by Rakshasas and wild beasts, and quite unfit for the
abode of a goddess like herself.
As her visitor was in appearance a Brahman, she dutifully attended
to him, bringing him water to wash his feet with, and food to eat,
while her eyes were straining through the forest for her absent lord.
Dreading that her Brahman guest might curse her if she did not
speak to him, Vaidehi began to relate the history of her exile,
addressing the seeming medicant in such flattering terms as “thou
best of twice born ones.” After listening to her story, Ravana
revealed himself to her, and again declaring his love, invited her to
become his wife in the great city of Lanka, where she should live in
luxury, attended by five thousand maid-servants. Sita indignantly
spurned the offer, threatening the Rakshasa with the consequences
of her husband’s anger. While indulging in boastful speeches
regarding his own prowess, Ravana assumed his natural form, with
ten heads and twenty arms. As he stood there before Vaidehi, “his
eyes were bloody,” and he appeared beautiful like unto blue clouds,
being dressed in gold-hued apparel (Dutt). Approaching the adorable
Sita, the enamoured giant caught her hair with one hand and her
legs with another and carried her off, through the air, in his golden
car drawn by asses. As she was being borne away, the fair lady
cried aloud for help, invoking the sylvan deities to tell her husband
whither, and by whom, she had been carried off. Her voice reached
the virtuous Jatayus, the king of birds, who, though sixty thousand
years old, immediately interposed to rescue her.
A furious and picturesque battle ensued, in which the huge vulture-
king, with his formidable beak, talons, and wings, made a gallant
stand against Ravana, in the cause of virtue and his friend Rama,
but eventually lost his noble life in the struggle, and left his huge
bones to mark, to this day, the scene of his terrible aërial conflict with
the demon.[31] The victorious Ravana carried Sita away through the
air in his arms. Some of her ornaments fell to the ground as the two
sped along in their journey towards Lanka, and showers of
blossoms, falling from her head, were scattered around. At this
sorrowful event the sun hid his face and all nature was oppressed
with grief. Not yet despairing of succour, the brave-hearted Sita
observed, as she passed along in mid-air, five monkey-chiefs seated
on the summit of a hill, and, unnoticed by Ravana, dropped amongst
them her gold-coloured sheet and some glittering ornaments, in the
hope that they might convey to Rama the intelligence of her
abduction by the giant. But Fate had more sorrow in store for her.
Over mountain peaks, over rivers, over the sea, Ravana conveyed
his prize without meeting with further opposition, and lodged her
safely in his magnificent palace in Lanka, where he treated her with
the greatest consideration, and wooed her like a youthful lover,
placing her tender feet upon his heads and professing himself her
obedient slave.
The Abduction of Sita.

(From an illustrated Urdu version of the “Ramayana.”)
Rama, on discovering the loss he had suffered, was in despair.

Sometimes he would indulge in excessive lamentations, wildly
calling upon the trees and streams, the deer of the forest and the
birds of the air, to tell him where his love had gone. At other times,
assuming a different tone, he would petulantly threaten to destroy
“the three worlds,” if the celestials did not restore Vaidehi to his
arms. At such moments Lakshmana would address his brother in the
most abject terms of flattery, and gently remind him of the necessity
of doing his duty and preserving his dignity.
Roaming about in search of the lost Sita, the brothers came across
Jatayus lying, in mortal agony, amidst the fragments of Ravana’s
wonderful car and his shattered umbrella. All that Rama could learn
from the dying king of the vultures was the name and rank of the
Rakshasa who had carried off his wife, and in a frenzy of grief he
rolled upon the ground, uttering vain lamentations. Presently the
brothers piously erected a funeral pile for the dead bird, and having
cremated the body, proceeded in their search for Sita, when they
encountered a horrid deformed monster, named Kabandha; thus
described by the poet:
“There stood before their wondering eyes
A fiend, broad-chested, huge of size;
A vast misshapen trunk they saw
In height surpassing nature’s law.
It stood before them dire and dread,
Without a neck, without a head,
Tall as some hill aloft in air,
Its limbs were clothed with bristling hair,
And deep below the monster’s waist
His vast misshapen mouth was placed.
His form was huge, his voice was loud
As some dark-tinted thunder-cloud.
A brilliance as of gushing flame
Beneath long lashes dark and keen
The monster’s single eye was seen.”[32]
In the battle which ensued the terrible monster had his two arms cut
off by Rama and Lakshmana respectively, and in this helpless
condition he explained that, though naturally endowed with a
surpassingly beautiful form, he used to assume this monstrous one
in order to frighten the ascetics in the forests; but one of these
saints, in a moment of anger, invoked this curse upon him, that he
should retain the disgusting form he had adopted, at least till, in
course of time, Rama should in person deliver him from its repulsive
deformity. The brothers placed the giant’s bulky body on a funeral
pyre, and from the ashes arose a beautiful being, clad in celestial
raiment, at whose suggestion Rama sought the friendship and aid of
Sugriva, King of the Vanaras, by whose assistance he hoped to find
out to what particular spot his beloved wife had been conveyed by
Ravana. Rama, in due course, found Sugriva and made the
acquaintance of his chief councillor the famous Hanuman, a son of
the god of the winds. When Rama met Sugriva, the latter was, like
himself, an exile from his native land, having been expelled from it by
his elder brother, King Bali, who had also taken unto himself Ruma,
Sugriva’s wife. The deposed monarch was wandering, with a few
faithful monkey companions, in the forest, and it was amongst them,
resting together on a mountain peak, that Sita had dropped her
yellow robe and golden ornaments. A sort of offensive and defensive
alliance was formed between the two banished princes, who were,
moreover, drawn towards one another by the fact that each had
been forcibly deprived of his consort. Rama was to help Sugriva to
overthrow Bali, secure the Vanar sceptre and recover his wife Ruma;
while Sugriva, on his part, was to assist Rama to discover Sita’s
whereabouts and to destroy her abductor. So great was the dread
Sugriva entertained of the prowess of his warlike brother Bali, that,
before committing himself to this alliance with Rama, he desired that
prince to give him some practical illustration of what he could do as a
wielder of warlike weapons; whereupon Rama shot from his mighty
bow a wondrous arrow, which, after passing through the stems of
seven palm trees, traversed a hill which stood behind them, then
flew through six subterranean realms and finally returned to the
hands of the bowman. Before this feat all Sugriva’s doubts vanished
and he was ready for action.
At Rama’s suggestion he proceeded to the great Vanar city
Kishkindha, and, in a voice of thunder, dared Bali to single combat.
The impetuous and passionate King of the Vanars accepted the
challenge at once, and an exceedingly fierce encounter took place
between the brothers outside the walls of the city. At length Sugriva
seemed to be failing, when Rama, who was standing by in ambush,
pierced Bali in the breast with one of those fatal arrows of his. As
might have been expected, Bali, with the life-blood welling from his
wounds, reproached Rama bitterly for his base, unfair, and cowardly
interposition in the battle between himself and Sugriva; but Rama
justified his action by saying that he was lord paramount of the whole
country, that Kishkindha came within the realm of Dasahratha, and
that Bali had justly forfeited his life by his misconduct in appropriating
his brother’s wife. Rama further remarked, contemptuously, that the
lives of mere Vanars or monkeys, as of other animals, were of little
account in the eyes of men; a remark which seems strange, indeed,
when we reflect that Bali was the king of a magnificent city decorated
with gold, silver and ivory, and that Bali’s brother was Rama’s much
desired ally.[33]
As Bali lay prostrate on the ground his disconsolate queen, Tara,
hastened to the fatal spot, with her little son Angad, and, in a passion
of grief, threw herself upon the body of her husband. She gave way
to the most touching sorrow and lamentation over the dying warrior
and seemed inconsolable, both then and later on when performing
the last rites for the deceased king. Had we seen no more of Tara
she would have lived as a tender and pleasant memory in our minds;
but, unfortunately, she reappears a very short time after as Sugriva’s
much loved and ardent consort, and actually appears grateful to
Rama for the benefit his deed had conferred upon the new king and
herself.
By the time Sugriva was formerly installed in the government of
Kishkindha, the rainy season came round,—a time of the year when,
in a roadless country, all military or other movements were
impossible. Rama, faithful to the conditions of his exile, would not
enter the city, and easily contented himself with a life in the
woodland, which, with its glittering fountains and laughing streams,
its stately trees, sweet-throated birds and odorous flowers, he was
never tired of admiring.
In return for the service rendered him by Rama, his ally Sugriva, now
King of the Vanars, assembled countless numbers (hundreds of
hundreds of millions!) of Vanars (monkeys and bears of different
colours—white, yellow and green) and sent them forth to search for
Sita. North, south, east and west, these Vanars traversed every land
and searched every possible retreat. From north, east and west,
were received reports of want of success; but from the south came
welcome tidings of the discovery of Sita by Hanuman, one of the
chief captains of the Vanar host, a son of the wind-god by a nymph
of paradise. The discovery of Sita’s place of captivity was made in
this way. In their active search for traces of her whereabouts, some
captains of the Vanar army of the south came across Sampati, the
huge brother of Jatayus, the king of the vultures, lying upon the top
of a high mountain. Bulky and powerful, the bird was yet quite
disabled and helpless, having had his wings scorched and destroyed
in a too adventurous flight towards the sun, which he had once
undertaken in a spirit of vanity and boastfulness. But even in this
unhappy state, dependent for his daily food upon the filial devotion of
his son, the old bird could, with his penetrating eye, see clearly to
enormous distances. He had witnessed Ravana’s hurried flight
through the air, with his beautiful prize, and had noted also that she
had been conveyed by the Rakshasa to Lanka beyond the sea. This
information he now communicated to the inquiring Vanars, and
having thereby performed a signal service to the son of Dasahratha,
his feathers sprouted again and he joyfully mounted once more into
his native element on new and lusty pinions.
Sita’s place of captivity was thus known to the Vanar; but how to
reach Lanka—separated as it was from the mainland by an arm of
the sea—became the urgent problem of the hour to the Vanar
commanders of the army of the south. If Sita was to be restored to
the arms of Rama, it was absolutely necessary that some one should
get to Lanka as a spy, in order to ascertain the facts in regard to
Sita’s captivity there, and to discover the strength of Ravana’s army
and his means of resisting an attack from without. Ships or even
boats were, in those primitive times, not to be thought of; but the
monkey could leap, and so it was proposed that some leader of the
race should essay the rather long jump across the strait which
separated Lanka from the continent. Who was so fitted for this
undertaking as the son of the wind-god, the redoubtable Hanuman?
Accordingly, after a great deal of boasting, Hanuman, assuming a
gigantic size, took the flying leap. The gods were well disposed
towards his brave venture, but there were also enemies on the path,
who endeavoured to stop him on his way. One of these was Surasa,
the mother of the Nagas, who, rushing upon him with wide-extended
jaws, mockingly told him that he must pass through her mouth before
proceeding any further on his journey. Hanuman dilated his person
till his stature attained many leagues, but the monster’s mouth grew
larger still. The cunning monkey now suddenly contracted his
dimensions to the size of a man’s thumb and jumped airily into and
out of Surasa’s gaping mouth. He had fulfilled his enemy’s conditions
and she good-naturedly acknowledged her defeat. His next
opponent, a terrific she-dragon, the fierce Sinhika, marvellously
caught his shadow as it glided over the sea, and in some mysterious
way retarded his progress thereby. With open mouth she made a
furious onslaught upon the wind-god’s son. Hanuman, equal to the
occasion, craftily contracted his dimensions, and jumping into
Sinhika’s cavern-like mouth, inflicted so much injury upon her that
she died. After this interruption he continued his aërial journey to
Lanka, probably making Sinhika’s carcass the base of a fresh leap
towards the island, though this is not expressly mentioned by the
poet.
When he had reached the island-kingdom of Ravana, the Vanar spy,
contracting his dimensions to those of an ordinary cat, found his way
by moonlight within the golden walls of the city, and, lost in
admiration, wandered about the wonderful streets of Ravana’s
capital, where tonsured priests and mail-clad warriors mingled freely
with bands of ascetics in deerskins, and fiends both foul and fair.
Eluding the guards, Hanuman crept into the palace. Here everything
was on a scale to astonish even the wind-god’s son, familiar with the
glories of Kishkindha; but most of all did he find food for admiration
in Ravana’s enchanted car, avowedly the most perfect work that had
been produced by Visvakarma, the architect of the gods.
“There shone with gems that flashed afar,
The marvel of the Flower-named car,
’Mid wondrous dwellings still confessed
Supreme and nobler than the rest.
Thereon with wondrous art designed
Were turkis birds of varied kind,
And many a sculptured serpent rolled
His twisted coil in burnished gold.
And steeds were there of noblest form,
With flying feet as fleet as storm;
And elephants with deftest skill
Stood sculptured by a silver rill,
Each bearing on his trunk a wreath
Of lilies from the flood beneath.
There Lakshmi, beauty’s heavenly queen,
Wrought by the artist’s skill was seen
Beside a flower-clad pool to stand,
Holding a lotus in her hand.”[34]
—Griffith (bk. v., canto vii.).
The zenana or women’s apartment, guarded by she-demons,[35]
which Hanuman next entered in the still hours of the night, when the
feast was over, the music had ceased and all the inmates were
hushed in slumber, affords the poet the opportunity of painting a
charming picture, which the reader will, I am sure, thank me for
reproducing here in Mr. Griffith’s agreeable version:
“He stood within a spacious hall
With fretted roof and painted wall,
The giant Ravan’s boast and pride,
Loved even as a lovely bride.
’Twere long to tell each marvel there,
The crystal floor, the jewelled stair,
The gold, the silver, and the shine
Of crysolite and almandine.
There breathed the fairest blooms of spring;
There flashed the proud swan’s silver wing,
The splendour of whose feathers broke
Through fragrant wreaths of aloe smoke.
‘’Tis Indra’s heaven,’ the Vanar cried,
Gazing in joy from side to side;
‘The home of all the gods is this,
The mansion of eternal bliss!’
There were the softest carpets spread,
Delightful to the sight and tread,
Where many a lovely woman lay
O’ercome by sleep, fatigued with play.
The wine no longer cheered the feast,
The sound of revelry had ceased.
The tinkling feet no longer stirred,
No chiming of a zone was heard.
So, when each bird has sought her nest,
And swans are mute and wild bees rest,
Sleep the fair lilies on the lake
Till the sun’s kiss shall bid them wake.
Like the calm field of winter’s sky
Which stars unnumbered glorify,
So shone and glowed the sumptuous room
With living stars that chased the gloom.
'These are the stars,’ the chieftain cried,
'In autumn nights that earthward glide,
In brighter forms to reappear
And shine in matchless lustre here.’
With wondering eyes awhile he viewed
Each graceful form and attitude.
One lady’s head was backward thrown,
Bare was her arm and loose her zone.
The garland that her brow had graced
Hung closely round another’s waist.
Here gleamed two little feet all bare
Of anklets that had sparkled there.
Here lay a queenly dame at rest

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19. Identifiable intangible assets are those intangible assets that:

20. Examples of intangible assets include:

21. Examples of elements of a business that commonly make up goodwill are:

23. An intangible asset may be recorded.

25. AASB 138 states that intangible assets:

Actual $000 Budg

37. Purchased goodwill is recognised as the amount of:

What is the value of goodwill, if any?

Carrying amount Recoverable amount Fair value

What is the value of goodwill, if any?

Total assets 564,000

Total liabilities 108,000

Net assets 456,000

Carrying Amount RecoverableAmount

E. None of the given answers.

The Abduction of Sita.

Rama, on discovering the loss he had suffered, was in despair.

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