Intangible assets

Question 1

Intangible asset criteria

Answer 1

No physical substance
Identifiable
Under entities control (control benefits for yourself / preventing others from it)

Recognition from framework:
Probable inflow of economic benefit
Measure reliably

Question 2

Measurement

Acquired
Research
Development
Internally generated

Answer 2

If acquired: Capatalised as cost plus any directly attributable costs. Then amortised.

Research: Not amortised - immediatly expensed

Development: Capatalised once meets all below criteria (IAS 38)
Sell/use, Commercially viable, Technically feasable, Resources to complete, Measure costs reliably, Probable future economic benefit

Internally generated: Cannot be capatalised as costs cannot be separated from overall development of business - expensed