(Solved by Humans)-Z acquired the business and assets of Q, a sole trader, on 31 October 2002.

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Z acquired the business and assets of Q, a sole trader, on 31 October 2002. The fair value of the assets acquired from Q were:     $000Non-current intangible assets Brand X – brand name220Non-current tangible assets268Plant and equipment5Inventory493Cash paid to Q523Z spent the following amounts creating and promoting the Brand Z brand name:Year to 31 October 2000$100,000Year to 31 October 2001$90,000Year to 31 October 2002$80,000Z’s accounting policy on recognized non-current intangible assets is that brand names are amortized over 10 years. On 31 October 2003, Z’s brand names were valued by an independent value as follows: Brand X at $250,000Brand Z at $300,000The directors of Z have been very impressed with the increase in profits from Q’s former business. They are certain that the goodwill has increased since they acquired Q’s business. Z’s directors have estimated that the goodwill is worth $45,000 at 31 October 2003.RequirementsExplain how Z should treat:(i) the brand names;(ii) goodwill; in its financial statements for the years ended 31 October 2002 and 2003. Your explanation should include reference to relevant International Accounting Standards.