IAS 38 Intangible Asset

Question 1

Definition

Answer 1

1. Non-Monetary Asset
2. No physical substance
3. Identifiable (separable/sell)

CF2010: Asset

1. Control
2. Probable FEB
3. Past Event

Question 2

Recognition criteria

Answer 2

• Probable FEB
• Measured reliably
• Not a result from internal development

Question 3

Measurement

Answer 3

Initial measurement:
1. @ cost (purchase price + direct cost)

Subsequent measurement:

1. Cost Model (definite life - contractual rights, indefinite life - duration of FEB generation is unclear).
2. Revaluation Model (only if: there is an active market for it).

Question 4

Definite life procedure

Answer 4

• Amortize over contract life

- Conduct impairment if there is evidence

Question 5

Indefinite life

Answer 5

• No amortization

- Must conduct impairment test regardless of evidence