IAS 38 - Intangible Assets Flashcards
what is an intangible asset
an asset that is separable, has monetary value but without physical substance
what does it mean if an asset is separable
can be divided from the entitity and sold, transferred or echanged, rented
examples of regular intangible assets
brand name
license
customer list
masthead
goodwill
patents
recognition criteria of intangible assets
- will generate future economic benefits
- cost can be measured reliably
at what value should intangible assets be measured at initially
cost
can internally generated intangible assets be recognised
no
value cannot be measured reliably
exception of internally generated intangible asset that can be recognised
development
example of irregular intangible asset
research and development
what is amortisation
depreciation of intangible assets
amortisation methods
straight line
diminishing value
how often should review of useful life and amortisation method take place
annually
what is research
investigation undertaken to gain scientific/technical knowledge and understanding
what is development
application of research findings to plan/design for production before commerical use
where is research expenditure charged
SPL
when it is incurred
what is the criteria for development expenditure to be capitalised
Probable to make future economic benefit
Intention to complete project
Resources available to complete
Ability to use/sell asset
Technically feaasible
Expenditure can be realiably separated
