files below

Ques 1.
A) As per AASB 137, contingent liability is a possible obligation, due to the past events, that may arise, but its occurrence is based on one or more uncertain events from future, outcome of which cannot be reasonable estimated as on date.
A contingent liability is not required to be recorded, it is needed to be disclosed in the notes to the financial statements, unless the probability of outflow is remote.
The amount that is probable to be paid is estimated and recorded in the books, the amount which is possible, is shown as contingent liability. Since, the amount as well as its occurrence is not finalized, it needs to be reassessed at the end of each reporting period.
B) Under AASB 137, since, the case is still pending and liability of Delta limited is not certain, it is a contingent liability and should not be recorded but disclosed in the notes to the financial statements.
The amount to be disclosed is to be based on estimate of amount required to settle the liability, which in this case is $ 500,000.
Ques 2.
A. As per AASB 138 or IAS 38, Internally generated intangible assets are difficult to recognize as compared to acquired assets, due to following two reasons:    
i. Identifying an identifiable asset that will generate expected future economic benefits
ii. Determination of cost reliably, determination of cost of generating intangible asset is difficult and is often overlapping the cost of maintaining the goodwill
Generation of intangible asset is split into two parts:
1. Research phase: The cost incurred in the research phase is not treated as intangible asset, it shall be treated as an expense, as and when...