IAS 38 Flashcards
Intangible asset recognition criteria (identifiable)
The asset is identifiable
Intangible asset recognition criteria (control)
The asset is controlled by entity
Intangible asset recognition criteria (substance)
Has no physical substance
Intangible asset recognition criteria (measured)
Cost of asset can be emasured reliably
What is an identifiable asset (separable)
It is capable of sold, transferred, licensed, rented or exchanged
What is an identifiable asset (contractual)
Arises from contractual of other legal rights
Initial recognition of intangible asset?
At cost
Subsequent recognition of cost model?
Cost - accumulated amortisation - impairment
Subsequent recognition of revaluation model?
FV - accumulated amortisation - impairment
What is finite useful life amortisation?
Amortised on a systematic basis over that life. Has zero residual value
What is indefinite useful life amortisation?
No foreseeable limit to generate net cash inflows
Subject to impairment review only
What is research?
Original and planned investigation undertaken with goal of gaining new scientific or technical knowledge
What happens with research?
It cannot be recognised as an intaigble asset. Recognsied as an expense in SPL
What is development?
Application of resarch to plan/design products before start of commercial production or use
When development recognsied as intangible asset?
Ptobable future economic benefits
Intention to complete and use/sell asset
Resources available to complete asset
Abiltiy to use/sell asset
Technical feasibility to complete asset
Expenditure measured reliably
What if development not recognised as an intangible asset?
Recognise as an expense in SPL
What is specifically not recognised as intangible assets?
Internally generated brands
Mastheads
Publishing titles
Customer lists
is internally generated goodwill recognised?
No
What are monetary assets?
Money held and assets to be received in fixed or indeterminable amounts of money
Examples of monetary assets/
Cash and receivables
Internally generated intangible assets compose of?
Research and development
Expenditure that is not recognised examples? (Are expenses)
Start-up
Training
Advertising
Promotional
Relocation
Reorganisation
What is an active market?
Market in which transactions take place with sufficient frequency and volume to provide pricing info on an ongonig basis
Uncommon example of active market for intangible assets (use revaluation model)
Freely transferable taxi licences
Nut production quotas
Finite useful life example?
Amortise asset on systematic basis over its useful life
Recognise amortisation in SPL
Residual value = 0
Amortisation begins when asset available for use
Review at each year end
Indefinite useful life example?
Don’t amortise asset
Conduct impairment review annually and where possible impairment
Review useful life at least annually
