Intangible Non-Current Assets Flashcards
1
Q
Intangible assets are identifiable by?
A
Non-monetary assets without physical substance
2
Q
Examples of intangible assets?
A
Patents
Franchises
Licenses
Computer software
Royalties
3
Q
Accounting for intangibles is prescribed in?
A
IAS 38
4
Q
What happens with intangible assets with finite useful lives
A
They will be amortised
4
Q
How are intangibles audited
A
With reference to criteria laid down in IAS 38
4
Q
Key assertions related to intangibles?
A
Do the exist? but Are they genuine assets?
Valuation
5
Q
What can be capitalised?
A
Only purchased goodwill or intangibles with a readily ascertain market value can be capitalised
6
Q
What audit evidence should be available?
A
Purchase invoices or specialist valuations
7
Q
How is audit of amortisation similar?
A
To audit of depreciation
