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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:Thursday, 8 December 2011
Posted by Muhammad Atif Saeed

Roots and Radicals

Introduction to Roots and Radicals

The symbol equation is called a radical sign and is used to designate square root. To designate cube root, a small three is placed above the radical sign, equation. When two radical signs are next to each other, they automatically mean that the two are multiplied. The multiplication sign may be omitted. Note that the square root of a negative number is not possible within the real number system; a completely different system of imaginary numbers is used. The (so-called) imaginary numbers are multiples of the imaginary unit i.
equation

Simplifying Square Roots

Example 1
Simplify.
  1. a, b
    equation
  2. equation
  3. If each variable is nonnegative (not a negative number), equation
If each variable could be positive or negative (deleting the restriction “If each variable is nonnegative”), then absolute value signs are placed around variables to odd powers.
equation
  • e
    If each variable is nonnegative,
    equation
  • f
    If each variable is nonnegative,
    equation
If each variable could be positive or negative, then you would write
equation
  • g
    If each variable is nonnegative,
    equation
If each variable could be positive or negative, you would write
equation
  • h
    If each variable is nonnegative,
    equation
If each variable could be positive or negative, you would write
equation
  • i
    If each variable is nonnegative,
    equation
  • j
    If each variable is nonnegative,
    equation

 Operations with Square Roots

You can perform a number of different operations with square roots. Some of these operations involve a single radical sign, while others can involve many radical signs. The rules governing these operations should be carefully reviewed.

Under a single radical sign

You may perform operations under a single radical sign.
Example 1
Perform the operation indicated.
  1. equation
  2. equation
  3. equation
  4. equation
  5. equation

When radical values are alike

You can add or subtract square roots themselves only if the values under the radical sign are equal. Then simply add or subtract the coefficients (numbers in front of the radical sign) and keep the original number in the radical sign.
Example 2
Perform the operation indicated.
  1. equation
  2. equation
  3. equation
Note that the coefficient 1 is understood in equation.

When radical values are different

You may not add or subtract different square roots.
Example 3
  1. equation
  2. equation

Addition and subtraction of square roots after simplifying

Sometimes, after simplifying the square root(s), addition or subtraction becomes possible. Always simplify if possible.
Example 4
Simplify and add.
  1. equation
    These cannot be added until equation is simplified.
    equation
    Now, because both are alike under the radical sign,
    equation
  2. equation
    Try to simplify each one.
    equation
    Now, because both are alike under the radical sign,
    equation

Products of nonnegative roots

Remember that in multiplication of roots, the multiplication sign may be omitted. Always simplify the answer when possible.
Example 5
Multiply.
  1. equation
  2. If each variable is nonnegative,
    equation
  3. If each variable is nonnegative,
    equation
  4. If each variable is nonnegative,
    equation
  5. equation

Quotients of nonnegative roots

For all positive numbers,
equation
In the following examples, all variables are assumed to be positive.
Example 6
Divide. Leave all fractions with rational denominators.
  1. equation
  2. equation
  3. equation
  4. equation
Note that the denominator of this fraction in part (d) is irrational. In order to rationalize the denominator of this fraction, multiply it by 1 in the form of
equation
Example 7
Divide. Leave all fractions with rational denominators.
  1. equation
  2. First simplify equation:
    equation
    or
    equation
  3. equation
  4. equation
Note: In order to leave a rational term in the denominator, it is necessary to multiply both the numerator and denominator by the conjugate of the denominator. The conjugate of a binomial contains the same terms but the opposite sign. Thus, ( x + y) and ( xy) are conjugates.
Example 8
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Divide. Leave the fraction with a rational denominator.
equation

About the Author

Posted by Muhammad Atif Saeed on 23:36. Filed under . You can follow any responses to this entry through the RSS 2.0. Feel free to leave a response

By Muhammad Atif Saeed on 23:36. Filed under . Follow any responses to the RSS 2.0. 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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