IAS 38 defines Intangible Assets and their Accounting Treatment. SCOPE OF IAS 38 p 471 IAS 38 Covers all intangible assets unless the asset is covered by another standard, e. g.: • Inventories • Deferred tax • Leases • Goodwill arising from business combination • Employee benefits • Non-current assets held for sale • Contracts with customers and financial assets, and It relates to mineral rights and related expenditure. Separate acquisition of intangible assets. Australian-specific paragraphs (which are not included in IAS 38) are identified with the prefix “Aus” or “RDR”. we introduce what is intangible assets and their attributes, recognition criteria and measurement methods. Under IAS 38, Intangible Assets are property that does not have a physical form but meets the three definition criteria: identifiable, controllable property that provides future economic benefits. Although there have been changes since 1978, the basic tenet of a conservative approach in accounting for intangible assets in IAS 38 has remained a constant. IAS 38 addresses intangible assets acquired by way of a government grant. Find PowerPoint Presentations and Slides using the power of XPowerPoint.com, find free presentations research about Ias 38 PPT IAS 38 Intangible assets gives guidance on the accounting treatment for intangible assets that are not dealt with specifically in another standard. The IFRS on which the IPSAS is based. The Standard also specifies how to measure the carrying amount of intangible assets and requires specified disclosures about intangible assets. An asset is separable if the enterprise could rent, sell, exchange or distribute the specific future economic benefits attributable to the asset without also disposing of future economic benefits that flow from other assets used in the same revenue earning activity. This chapter examines the intangible assets (IAS 38) standard that addresses accounting for “intangible assets” defined in International Accounting Standard (IAS 38) other than those intangible assets that are covered by other International Financial Reporting Standards (IFRS). IAS 38 Intangible Assets was issued by the International Accounting Standards Committee in September 1998. 2. intangible assets held by … Contractual customer relationships are always recognised separately from goodwill because they meet the contractual-legal criterion. An intangible asset is an identifiable non‐monetary asset of the entity without physical substance. IAS 38 paras 94-96, intangibles assigned useful life longer than contractual period as expected to be renewable without significant cost; IAS 38 paras 122(a)(b), additional information for material finite lived and indefinite lived intangibles; IAS 38, intangible assets, landing rights An intangible asset can be clearly distinguished from goodwill if the asset is separable. When we have an asset that is controlled by the entity, future economic benefits are expected to be derived from the asset, there is lack of physical substance but the asset is identifiable, we speak about intangible assets as defined by the IAS 38 standard. 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 cost of a separately acquired intangible asset can usually be measured reliably (IAS 38.26). IAS 38. Cost of a separately acquired intangible asset comprises (IAS 38.27): Its purchase price, plus import duties and non-refundable taxes, less discounts and rebates,; Any directly attributable costs of preparing the asset for its intended use. This Standard states that, where an intangible asset is IN1 Hong Kong Accounting Standard 38 Intangible Assets (HKAS 38) replaces SSAP 29 Intangible Assets (issued in 2001), and should be applied: (a) on acquisition to the accounting for intangible assets acquired in business combinations for which the agreement date is on or after 1 January 2005. IAS 38 Intangible Assets Overview When we have an asset that is controlled by the entity, future economic benefits are expected to be derived from the asset, there is lack of physical substance but the asset is identifiable, we speak about intangible assets as defined by the IAS 38 standard. An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Volume A - A guide to IFRS reporting Volume B - Financial Instruments - IFRS 9 and related Standards Volume C - Financial Instruments - IAS 39 and related Standards IFRS disclosures in practice Model financial statements for IFRS reporters 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. IAS 38 in the digital world IAS 38 Intangible Assets IAS 38 Intangible Assets 2017 - 05 1 Objective 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 Intangible assets is one of popular accounting standards in ACCA SBR exam. This Standard requires an entity to recognise an intangible asset if, and only if, specified criteria are met. According to IAS 38, Intangible Assets are Non-Monetary Assets without physical substance that are separable from the entity or arise as a result of some contractual or legal rights. Overview. IAS 38 full text Overview. 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. IAS 38 Intangible Assets 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). IAS 38 requires that the fair value of an intangible asset should be measured by reference to an active market, therefore cost model is by far more popular than the revaluation model. IAS 38 prescribes the recognition, measurement and disclosures applicable to intangible assets which are not dealt with specifically in another standard. Software developed for sale have their development costs recorded as an asset. Derecognition. This chapter discusses the recognition and measurement of IAS 38 intangible assets. This standard requires an entity to recognise an intangible asset if, and only if, specified criteria are met. IAS 38 Intangible Assets (September 2017) Goods acquired for promotional activities The Committee received a request about how an entity accounts for goods it distributes as part of its promotional activities. It requires an entity to recognize an intangible asset upon fulfillment of certain recognition criteria. Intangible PowerPoint PPT Presentations. Scope Participants who are familiar with IAS 38 should be comfortable with IPSAS 31 as long as the key differences are noted. IAS 38 Intangible Assets Objective The objective of IAS 38 is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another IFRS. All Time Show: Recommended. 8.2 IAS 38 INTANGIBLE ASSETS Objective: To prescribe treatment of intangible assets not covered by other IFRSs. It requires an entity to recognize an intangible asset if, and only if, specified criteria are met. In the fact pattern described in the request, a pharmaceutical entity acquires goods Comparison with IAS 38 AASB 138 Intangible Assets as amended incorporates IAS 38 Intangible Assets as issued and amended by the International Accounting Standards Board (IASB). Intangible Assets. Cost of intangible asset. As mentioned earlier, IAS 38 provides application guidance for separate acquisition of intangible assets (IAS 38.25-32) and acquisition as part of a business combination (IAS 38.33-37). 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. 1) It must be a non-monetary asset 2) It must result in a flow of economic benefit to the entity 3) its costs should be able to be measured reliably. SCOPE IAS 38 applies to all intangible assets, except: • intangible assets within the scope of another standard (e.g. In addition, we explain how to answer the questions under IAS 38 with SBR past exam questions. Limited amendments were made in 1998. IPSAS ® 31. The amortization of an asset should only start when the asset is brought into actual use, and not before, even if the requisite intangible asset has been acquired. INTANGIBLE ASSETS Chapter Objectives At the completion of studying this chapter, you will be able to:. This Standard requires an entity to recognise an intangible asset if, and only if, specified criteria are met. IAS 38 provides general guidelines as to how intangible assets should be amortized: 1. It replaced IAS 9 Research and Development Costs (issued 1993, replacing an earlier version issued in July 1978). IPSAS 23, ―Revenue from Non-exchange Transactions (Taxes and Transfers)‖ deals with this issue as it applies in the public sector. The Standard also specifies how to measure the carrying… Principal definitions IAS 38 covers the definition and recognition criteria for Intangible Assets. The question asks under IAS 38 Intangible Assets which two are required for the costs of the asset to be capitalized as an intangible asset? IPSAS 31 is based on IAS 38, Intangible Assets. Retirements and disposals of intangible assets are covered in paragraphs IAS 38.112-117. An intangible asset is identifiable if it meets either the contractual-legal criterion or the separable criterion in IAS 38 Intangible Assets. View and Download PowerPoint Presentations on Ias 38 PPT. This Standard requires an entity to recognise an intangible asset if, and only if, specified criteria are met. The Standard requires an entity to recognise an intangible asset if, and only if, certain criteria are met. Examples include: patents, licenses, & … Content. IAS 38, Intangible Assets. In reality, the origins of IAS 38 can be traced back to the superseded IAS 9, Research and Development Costs, which was first issued in 1978 by the IASC.