IAS 38 Intangible assets

Question 1

define

Answer 1

Assets without physical substance which the entity has the right to control from which it derives economic benefits

Question 2

valuation (2)

Answer 2

• Valuation model:
• Any increase in value goes to OCI and OCE.
• requires that there must be an active market for the asset (rare)
• Cost model:
• Cost model more common

Question 3

Life (2), R+D (1)

Answer 3

• Finite life: amortise when asset available for use
• Inifnite life: recognise @ cost or valuation with annual impairment review
• R+D must be capitalised if defenition of development costs has been met otherwise write off to P/L.