Ias 38 Intangible Assets
Assets that are carried at revalued amount ie fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses in accordance with other IFRSs such as the revaluation model in IAS 16. In practice most intangible assets are most likely to be shown at the original cost unless a reference to an active market is possible to establish a revalued amount.
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To sum up each intangible asset has 3 main characteristics.
. Intangible assets IAS 38 30 Property plant and equipment IAS 16 31 Investment property IAS 40 32 Impairment of assets IAS 36 33 Lease accounting IAS 17 IFRS 16 34 Inventories IAS 2 35 Provisions and contingencies IAS 37 36 Events after the reporting period and financial commitments IAS 10 38. If broadcasting rights can be renewed easily then they can be reported as an intangible asset with an indefinite life. IAS 38 provides general guidelines as to how intangible assets should be amortized.
IAS 38 outlines the accounting requirements for intangible assets which are non-monetary assets which are without physical substance and identifiable either being separable or arising from contractual or other legal rights. The table below shows the structure of the. Additionally the assessment of whether an.
Research and development edit Research and development kno 1 wn also as RD is considered to be an intangible asset about 16 percent of all intangible assets in the US 6 even though most countries treat RD as current expenses for. And IAS 38. The most common example of such an intangible is broadcasting rights.
Under International Financial Reporting Standards guidance on accounting for the amortization of intangible assets is contained in IAS 38. SIC-32 concludes that a website developed by an entity using internal expenditure whether for internal or external access is an internally generated intangible asset that is subject to the requirements of IAS 38 Intangible Assets. Amortization Methods General Guidelines.
IAS 38 contains examples of intangible assets including. 2 IAS 36 Impairment of Assets 3 IAS 37 Provisions Contingent Liabilities and Contingent Assets 4 IAS 38 Intangible Assets In IFRS reporting companies reflect assets on the statement of financial position and divide them into two broad categories. Property Plant and Equipment.
Intangible assets meeting the relevant recognition criteria are initially measured at cost subsequently measured at cost or using the revaluation model. Amortization is recorded in the financial statements of an entity as a reduction in the carrying value of the intangible asset in the balance sheet and as an expense in the income statement. An intangible asset with an indefinite useful life is not amortised.
Computer software copyright and patents. Non-current assets and current assets. And IAS 38 expands this definition for intangible assets by specifying that on top of basic definition an intangible asset is an identifiable non-monetary asset without physical substance.
Instead it should be tested for impairment at least annually under IAS 36 IAS 38107-108. An intangible asset can be shown at the original cost at fair value as deemed cost or at the most recent revaluation amount before transition if such a revaluation is possible. Requirements for amortisation period and amortisation method are set out in paragraphs IAS 3897-99 and generally are the same as in IAS 16.
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