Intangible Assets (IAS 38)

Question 1

Give the IAS 38 definition of intangible assets

Answer 1

An identifiable non-monetary asset without physical substance (IAS 38 para 8)

Question 2

State the 3 main characteristics of an intangible non current asset

Answer 2

1) it is a resource controlled by the entity as a result of past events from which the entity expects to derive future economic benefits.
2) it lacks physical substance
3) it is identifiable and separately distinguishable from goodwill

Question 3

State the basic criteria for recognition of an intangible asset

Answer 3

it must meet the definition of an asset and meet the recognition ciriteria (IAS 38, para 18)

Question 4

State 6 examples of intangible assets

Answer 4

1) Licences
2) Patents
3) Brands
4) Trademarks
5) Copyrights
6) Franchises