IAS 38 Flashcards
(37 cards)
What intangible assets does IAS 38 not apply to?
Financial assets
Exploration and evaluation assets
Insurance contracts
Expenditure on natural resources
Intangible covered by another IFRS
What is an intangible asset?
An identifiable non-monetary asset without physical substance
Characteristics of an intangible asset?
Identifiability
Control
Future economic benefits
What is identifitability?
Is separable from the entity or arises from contractual rights
Examples of intangible assets?
Patented technology
Import quotas
Trademarks
Customer lists
Video and audiovisual materials
Franchise agreements
When is an intangible asset recognised?
Porbable future economic benefits
Can be measured reliably
How can intangibles be acquired
Separate purchase
Exchange of assets
Government grant
Does internally generated intangible assets have separate criteria?
Yes
What if recognition criteria is not met?
Recognised as an expense when it is incurred
What is the probability based on?
Supportable assumptions about conditions that exist over life of the asset
Fair value of a business combination presumption?
It can be measured reliably
Business combination expenditure that does not meet definition of and criteria for an intangible asset?
Form part of amount attributed to goodwill recognised at acquisition date
Reinstatement and IAS 38?
Standard prohibits reinstatement of an asset that was charged as an expense
How are research costs charged?
As an expense
When are development costs capitalised?
When they meet PIRATE criteria
Research and development project acquired in a business combination recognsied?
As an asset at cost
Initial recognition of internally generated brands, mastheads, titles, lists
Are not recognised as an asset
Following items should be charged to expense?
Internally generated goodwill
Start-up costs
Training costs
Advertising costs
Relocation costs
What if entity has made prepayment for items charged as an expense?
Prepayment is recognised as an asset until entity receives related goods or services
How are intangible assets initially measured?
At cost
Cost model in IAS 38?
Cost - accumulated depreciation - impairment
When may revaluation model be used?
If fair value can be determined by reference to an active market. This is uncommon
Scenarios of revaluation model?
Production quotas
Fishing licences
Taxi licences
What if the revalued amount has a finite life?
It is amortised
