IAS 38 - Intangible Assets

Question 1

Recognition criteria

Answer 1

*Probable future economic benefits: It is probable that the asset will generate future economic benefits.
*Reliable measurement of cost: The cost of the asset can be measured reliably.

Question 2

Definition of an Intangible Asset

Answer 2

*It is identifiable (either separable or arises from contractual/legal rights).
*It is non-monetary and lacks physical substance.

Question 3

Additional Considerations

Answer 3

*Acquired assets: If acquired separately or through a business combination, it is generally easier to identify and measure the cost reliably.
*Internally generated assets: Special rules apply, such as separating the research and development phases. Only costs incurred during the development phase can be recognized if specific criteria are met.
*Goodwill: Cannot be recognized unless acquired in a business combination.