Lkas 38 should be read in the context of its objective, the preface to sri lanka accounting standards and the framework for the preparation and presentation of financial statements. Assets that are noncurrent, nonmonetary, and nonphysical. The requirements of ias 38 and sic32 rsm south africa. United states of america, with the delaware division of companies file no. This standard requires an entity to recognise an intangible asset if, and only if, specified criteria are met. Columbus building, 7 westferry circus, canary wharf, london. Ias 38 intangible assets was issued by the international accounting standards committee in september 1998. Pdf ias 38, intangible assets final angie valenzuela. Thus, intangible assets are non monetary by nature. Internally generated intangible asset research and development. Ias 38 is applicable for annual reporting periods commencing on. Ias 38 intangible assets 2017 05 2 an asset is identifiable if it is either. Its purchase price, plus import duties and nonrefundable taxes, less discounts and rebates.
Ias 38 intangible assets gives guidance on the accounting treatment for intangible assets that are not dealt with specifically in another standard. The recognition of an item as an intangible asset requires. Remember, when were looking at audit risks we have to consider issues that could affect the. It is probable that the future economic benefits that are attributable to the website will flow to the entity. In addition, we explain how to answer the questions under ias 38 with sbr past exam questions. Ias 38 prescribes the recognition, measurement and disclosures applicable to intangible assets which are not dealt with specifically in another standard. Ias 38 intangible assets croneri tax and accounting. Ipsas 23, revenue from nonexchange transactions taxes and transfers deals with this issue as it applies in the public sector. Intangible business is highly experienced in valuing intangible assets for compliance purposes. Any directly attributable costs of preparing the asset for its intended use i wrote a few articles about the cost of longterm assets, so you can check out this one about directly attributable cost, or.
The examples in our paper are clearly not designed to be exhaustive. Ias 38 outlines the accounting requirements for intangible assets, which are non monetary assets which are without physical substance and identifiable either. Standard also specifies how to measure the carrying. Hong kong accounting standard 38 intangible assets objective 1 the objective of this standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another standard.
Ias 38 should be read in the context of its objective and the basis for conclusions, the preface to international financial reporting. It does not have physical substance but grants rights and economic benefits to its owner. An intangible asset is an identifiable nonmonetary asset without physical substance. The nature of an intangible asset will determine what costs are initially capitalized and how expenses related to the intangible asset are subsequently recognized. Revenue from nonexchange transactions taxes and transfers. Ias 38 intangible assets definitions an asset is an economic resource controlled by an entity, from which it expects economic benefits, and the entity can measure its cost.
Intangible assets meeting the relevant recognition criteria are initially measured at cost, subsequently measured at cost or using the revaluation model, and amortised. Ias 38 addresses intangible assets acquired by way of a government grant. Ias 38 intangible assets what are covered in acca sbr. It requires an entity to recognize an intangible asset upon fulfillment of certain recognition criteria. Ias 38 intangible assets 2017 05 pkf international. The standard requires an enterprise to recognise an intangible asset if, and only if, certain criteria are met. The recognition and measurement of some financial assets are covered by ifrs 10 consolidated financial statements. Ias 38 intangible assets summary with examples pdf. International accounting standard 38 intangible assets. Ias 38 intangible assets the objective of this standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another standard. Along with these requirements the recognition criteria of ias 38. Cost of a separately acquired intangible asset comprises ias 38.
Ifric 12 is published by the international accounting. Ias 38 intangible assets ifrs essentials wiley online. What do you mean by intangible assets an intangible assets is an identifiable nonmonetary assets without physical substance held for use in the production or supply of goods or services, for rental to others, or for administrative purposes. Ias 38 intangible assets ifrs standards tracker icaew. It is adapted to the for public sector entities from ias 38, intangible assets. Introduction to intangible assets boundless accounting. An asset is a resource controlled by an entity as a result of past events, from which future economic benefits are expected to flow to the entity. Comparison with ias 38 aasb 8 intangible assets as amended incorporates ias 38 intangible assets as issued and amended by the international accounting standards board iasb. Ec staff consolidated version as of 24 march 2010 last eu endorsedamended on 24.
Scope ias 38 applies to all intangible assets except. All the paragraphs have equal authority but retain the iasc format of the standard when it was adopted by the iasb. Sri lanka accounting standard lkas 38 intangible assets is set out in paragraphs 12. Ias 38 needs an entity or unit to identify an intangible asset, be it a self created or purchased. Ias 38 outlines the accounting requirements for intangible assets, which are nonmonetary assets which are without physical substance and identifiable either being separable or arising from contractual or other legal rights. September 1998 ias 38, intangible assets 1 july 1999 effective date of ias 38 p. Reasons for revising ias 38 in2 the international accounting standards board developed this revised ias 38 as part of its project on business combinations.
It replaced ias 9 research and development costs issued 1993, replacing an earlier version issued in july 1978. An item is identifiable if it is separable or arises from contractual or other legal rights. A checklist is designed to outline the key issues involved and answer the most common questions we are asked and issues encountered. Illustrative examples ias 38 intangible assets croner. International accounting standard 38 intangible assets ias 38 is set out in paragraphs 13. An intangible is a nonmonetary asset that manifests itself by its economic properties. Nz ias 38 this version is effective for reporting periods beginning on or after 1 jan 2020 early adoption permitted. Intangible assets meeting the relevant recognition criteria are initially measured at cost, subsequently measured at cost or using the revaluation model. Pdf on dec 19, 2018, ali prof hayder and others published accounting for intangible assets find, read and cite all the research you need on researchgate. Ias 38 intangible assets outlines the accounting requirements for intangible assets, which are nonmonetary assets which are without physical substance and identifiable either being separable or arising from contractual or other legal rights. Further to the general definition of an asset, intangible assets are. An intangible asset is an identifiable non monetary asset without physical substance.
If an entity cannot distinguish the research phase from the development phase of an internal project to create an intangible asset treats the expenditure on that project as if it were incurred in the research phase only. The frrp can name and shame individual companies there is a need for improved. Unlimited viewing of the articlechapter pdf and any associated supplements and figures. Prescribes the accounting treatment for intangible assets that are not dealt with specifically in another standard.
Ias 38 intangible assets free download as powerpoint presentation. Ifrs foundation, international accounting standards. Ias 38 international accounting standard 38 intangible assets objective 1 the objective of this standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another standard. Intangible assets involve certain factors or elements such as computer software, s, licenses, franchises, and patents among others saudagaran, 2009. Ias 38 intangible assets intangible asset goodwill. Recognition and measurement the initial measurement of an intangible asset depends on whether it has been acquired separately, has been. Example 1 an acquired customer list example 2 an acquired patent that expires in 15 years example 3 an acquired that has a remaining legal life of 50 years. In addition, the impact of financing arrangements i. Find out more about the benefits of membership and joining details. Intangible assets can have either identifiable or indefinite useful or legal lives. Ias 38 intangible assets sets out the recognition criteria, measurement bases and disclosure requirements for intangible assets not dealt with specifically in another standard. Ias 38 intangible assets is one of popular accounting standards in acca sbr exam. Australianspecific paragraphs which are not included in ias 38 are identified with the prefix aus or rdr.
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