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Accounting for Intangible Assets

08 Mar 2012 / 0 Comments

Steve Collings looks at the fundamental principles in accounting for goodwill and intangible assets and also looks at some fundamental differences between current UK GAAP, IFRS and the proposed IFRS for SMEs.As accountants we are all aware that an intangible asset does not have any physical form

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Published On:Friday, 9 December 2011
Posted by Muhammad Atif Saeed

Continuity

Continuity

A function f( x) is said to be continuous at a point ( c, f( c)) if each of the following conditions is satisfied:



Geometrically, this means that there is no gap, split, or missing point for f( x) at c and that a pencil could be moved along the graph of f( x) through ( c, f( c)) without lifting it off the graph. A function is said to be continuous at ( c, f( c)) from the right if and continuous at ( c, f( c)) from the left if . Many of our familiar functions such as linear, quadratic and other polynomial functions, rational functions, and the trigonometric functions are continuous at each point in their domain.
A special function that is often used to illustrate one-sided limits is the greatest integer function. The greatest integer function, [ x], is defined to be the largest integer less than or equal to x (see Figure 1 ).






Figure 1 The graph of the greatest integer function y = [ x].

Some values of [ x] for specific x values are




The greatest integer function is continuous at any integer n from the right only because




hence, and f( x) is not continuous at n from the left. Note that the greatest integer function is continuous from the right and from the left at any noninteger value of x.
Example 1: Discuss the continuity of f( x) = 2 x + 3 at x = −4.
When the definition of continuity is applied to f( x) at x = −4, you find that




hence, f is continous at x = −4.
Example 2: Discuss the continuity of
When the definition of continuity is applied to f( x) at x = 2, you find that f(2) does not exist; hence, f is not continuous (discontinuous) at x = 2.
Example 3: Discuss the continuity of
When the definition of continuity is applied to f( x) at x = 2, you find that




hence, f is continous at x = 2.
Example 4: Discuss the continuity of .
When the definition of continuity is applied to f( x) at x = 0, you find that




hence, f is continuous at x = 0 from the right only.
Example 5: Discuss the continuity of
When the definition of continuity is applied to f( x) at x = −3, you find that




Many theorems in calculus require that functions be continuous on intervals of real numbers. A function f( x) is said to be continuous on an open interval ( a, b) if f is continuous at each point c ∈ ( a, b). A function f( x) is said to be continuous on a closed interval [ a, b] if f is continuous at each point c ∈ ( a, b) and if f is continuous at a from the right and continuous at b from the left.
Example 6:
  1. f( x) = 2 x + 3 is continuous on (−∞,+∞) because f is continuous at every point c ∈ (−∞,+∞).
  2. f( x) = ( x − 3)/( x + 4) is continuous on (−∞,−4) and (−4,+∞) because f is continuous at every point c ∈ (−∞,−4) and c ∈ (−4,+∞)
  3. f( x) = ( x − 3)/( x + 4) is not continuous on (−∞,−4] or [−4,+∞) because f is not continuous on −4 from the left or from the right.
  4. is continuous on [0, +∞) because f is continuous at every point c ∈ (0,+∞) and is continuous at 0 from the right.
  5. f( x) = cos x is continuous on (−∞,+∞) because f is continuous at every point c ∈ (−∞,+∞).
  6. f( x) = tan x is continuous on (0,π/2) because f is continuous at every point c ∈ (0,π/2).
  7. f( x) = tan x is not continuous on [0,π/2] because f is not continuous at π/2 from the left.
  8. f( x) = tan x is continuous on [0,π/2) because f is continuous at every point c ∈ (0,π/2) and is continuous at 0 from the right.
  9. f( x) = 2 x/( x2 + 5) is continuous on (−∞,+∞) because f is continuous at every point c ∈ (−∞,+∞).
  10. f( x) = | x − 2|/( x − 2) is continuous on (−∞,2) and (2,+∞) because f is continuous at every point c ∈ (−∞,2) and c ∈ (2,+∞).
  11. f( x) = | x − 2|/( x − 2) is not continuous on (−∞,2] or [2,+∞) because f is not continuous at 2 from the left or from the right.

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Posted by Muhammad Atif Saeed on 01:58. Filed under , , . You can follow any responses to this entry through the RSS 2.0. Feel free to leave a response

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I am doing ACMA from Institute of Cost and Management Accountants Pakistan (Islamabad). Computer and Accounting are my favorite subjects contact Information: +923347787272 atifsaeedicmap@gmail.com atifsaeed_icmap@hotmail.com
  1. Accounting for Intangible Assets
  2. Fair Value Measurement of Financial Liabilities
  3. The Concept of Going Concern
  4. The Capital Asset Pricing Model
  5. Bond Valuation
  6. Asset Management Market Efficiency Asset Management Market Efficiency
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