IAS 38

Question 1

Identifiability of an intangible asset

Answer 1

• Asset is separable or
• Arises from contractual or other legal rights (regardless of whether those rights are transferable or separable)

Question 2

What do they mean by separable

Answer 2

Capable of being sold without disposing of the business as a whole

Question 3

Critical attributes of an intangible assets

Answer 3

• Identifiability (separable and cost can be reliably measured)
• Control (power to obtain benefits from the asset)
• Future economic benefits (Such as revenues, or reduced future costs)
• No physical substance
• Non-monetary asset

Question 4

Recognised intangible assets are normally…

Answer 4

carried at cost less accumulated amortisation less any accumulated impairment loss

Question 5

Intangible asset

Answer 5

An identifiable non-monetary asset without physical substance

Question 6

Cost model and Revaluation model

Answer 6

Cost Model: after initial recognition, intangibles are carried at
Cost - (Accumulated Amortisation + Accumulated Impairment Losses)

Revaluation Model: after initial recognition, intangibles are carried at revalued amount
Fair Value - Subsequent (Accumulated Amortisation + Accumulated Impairments)

Question 7

Circumstances in which revaluation model may be used:

Answer 7

• Model cannot be applied to an intangible asset unless its fair value can be measured reliably, by reference to an active market in that type of asset
• Must be applied to the entire class to which the asset belongs
• revaluations should be made with sufficient regularity to ensure that the carrying amount does not differ materially from fair value