Notes of a Third year student studying Bachelors of Accounting at the University of the Free State. With this notes that i have compiled, i was able to proudly say that i received a distinction in Financial Accounting by using this notes. If you are struggling with Financial Accounting use this not...
Unit 6: Intangible Assets IAS 38
To recognise an intangible asset, it must meet (par 18):
The definition of an intangible asset AND
The recognition criteria
Definition Recognition criteria (par 21)
→ Without physical substance
When it is probable that:
→ Identifiable
Asset that is separate OR arises from → The future economic benefits associated
contractual OR legal rights with the intangible asset will flow to the
→ Non- monetary entity and
Along with the generic definition of an asset: → The cost of the intangible asset can be
→ Future economic resource measured reliably.
→ Controlled by the entity
→ As a result of a past events
Controlled (par 13)– Power to obtain the future economic benefit and to restrict the access of others
to those benefits
Future economic benefits (par 17) – Include revenue, cost savings or other benefits
Access using assumption of economic conditions (par22)
Recognition criteria in par 21 should still be satisfied (par 25)
The cost of a separately acquired intangible asset can usually be measured reliably (par 26)
Internally generated goodwill
not intangible asset par 48
no identifiable resource par 49
Internally generated brands, mastheads, publishing titles, customer lists and items similar in substances
shall not be recognised as intangible assets par 63
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