Week 9: Intangible Assets (NZ IAS 38)

Question 1

What is an intangible asset?

Answer 1

An identifiable, non-monetary asset without physical substance.

Question 2

What are some examples of intangible assets?

Answer 2

Brands, patents/copyrights/trademarks, customer lists, Goodwill, prototypes/idea/designs.

Question 3

When is an intangible asset recognised?

Answer 3

Recognised when:
- It is probable that future economic benefits attributable to the entity will flow to the entity;
- The cost can be measured reliably.

Question 4

What cannot be recognised as an intangible asset?

Answer 4

Internally generated goodwill, brands, mastheads, publishing titles, customer list. This is because internally generated goodwill cannot be reliably measured.

Research costs. However, internally generated intangible assets can be recognised in the development phase.