1 / 10

CHAPTER 10

CHAPTER 10. LONG-TERM ASSETS II: INTANGIBLES. Intangibles. Definition Identifiability Manner of acquisition Expected period of benefit Separability. Classifications. External acquired or internally developed Identifiable or unidentifiable. Accounting Treatment. Cost

olwen
Download Presentation

CHAPTER 10

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CHAPTER 10 LONG-TERM ASSETS II: INTANGIBLES

  2. Intangibles • Definition • Identifiability • Manner of acquisition • Expected period of benefit • Separability

  3. Classifications • External acquired or internally developed • Identifiable or unidentifiable

  4. Accounting Treatment • Cost • Subsequent amortization • Limited term of existence • No term of existence • Factors to consider

  5. Goodwill • The concept • Theoretical value • Accounting • How to record? • How to amortize?

  6. Brand Recognition Accounting • What is it? • Recognition and allocation • Brand recognition in the acquisition of a business

  7. Research and Development Costs • Definition • Research • Development • Accounting

  8. IAS No. 38Intangible Assets • Applies to all intangible assets that are not specifically dealt with in other International Accounting Standards • Specifically, IAS 38 indicates that an intangible asset should be recognized initially, at cost, in the financial statements if: • The asset meets the definition of an intangible asset. Particularly, there should be an identifiable asset that is controlled and clearly distinguishable from an enterprise's goodwill; • It is probable that the future economic benefits that are attributable to the asset will flow to the enterprise; and • The cost of the asset can be measured reliably.

  9. IAS No. 38Intangible Assets • After initial recognition in the financial statements, IAS No 38 indicates that an intangible assets should be measured under one of the following two treatments: • Benchmark treatment: historical cost less any amortization and impairment losses; or • Allowed alternative treatment: revalued amount (based on fair value) less any subsequent amortization and impairment losses.

  10. IAS No. 38Intangible Assets • The statement requires intangible assets to be amortized over the best estimate of their useful life, includes the presumption that the useful life of an intangible asset will not exceed 20 years and should • Test the intangible asset for impairment at least annually in accordance with IAS 36, Impairment of Assets; and • Disclose the reasons why the presumption that the useful life of an intangible asset will not exceed 20 years is rebutted and also the factor(s) that played a significant role in determining the useful life of the asset.

More Related