Assumed knowledge Flashcards
acronym for internally generated intangible assets
PIRATE
What does P stand for in Pirate
Probable future economic benefits
What does I stand for in Pirate
Intention to complete and use or sell
What does R stand for in Pirate
Resources available to complete
What does A stand for in Pirate
Ability to use or sell the asset
What does T stand for in Pirate
Technically feasible to complete asset
What does E stand for in Pirate
Expenditure can be measured reliably
how do you recognise the gain or loss when disposing an intangible asset
profit or loss of disposal recognised in P/L
If an intangible asset has an indefinite life how do you treat
no amortisation and annual impairment review
what is the recoverable amount of an asset
higher of fair value less costs of disposal
or
value in use
whats a CGU
Cash generating unit
how do you allocate impairment losses to a CGU
Allocate first to good will and then pro rata to Non current assets
can you impair current assets
no
what is the minimum value of an asset
no asset below fair value less costs of disposal
its value in use or zero
how do you calculate goodwill
Consideration + NCI - FV of assets at acquisition
