Please enable JavaScript.
Coggle requires JavaScript to display documents.
Ind-AS 38: Intangible Assets (Out of Scope (Intangible assets held for…
Ind-AS 38: Intangible Assets
Meaning
No physical substance
Under control of enterprise
Undisputed ownership
Ability to restrict others from accessing benefits
Power to obtain future economic benefits
Identifiable
Asset is separable from entity and can be sold, exchanged or given on rent/royalty
Arises from contractual/other legal rights
Non-monetary asset
(Held for use)
Enterprise should have reliable estimate for cost of asset.
Out of Scope
Intangible assets held for sale in ordinary course of business
Ind-AS 2
Deferred Tax Assets
Ind-AS 12
Leases
Ind-AS 116
Employee Benefits Assets
Ind-AS 19
Goodwill
Ind-AS 103
NCA Held for Sale
Ind-AS 105
Insurance Contract Assets
Ind-AS 104
Mineral oils, Ores
Ind-AS 106
Initial Measurement
Purchase by Cash
Inclusions
Purchase price
Non-refundable duties and taxes
Directly attributable costs
Exclusions
Staff training cost
Advertisement
General & Admin. OH
Startup Costs
Operating losses
Trade discount & Refundable duties
Deferred Credit
Discount purchase price and
write off interest cost in SOPL
Exchange of Assets
Refer Ind-AS 40 & 16
Business Acquisition
Record intangible assets at at fair value
Internally Generated
Self-Generated
Not recognised as intangible assets
In-House R&D
Research
Before technical feasibility
Write off in SOPL
Development
After technical feasibility
Recognise as intangible asset
Govt. Grants
Refer Ind-AS 20
Presentation
Cost Model
Refer Ind-AS 16
Revaluation Model
Refer Ind-AS 16
Amortisation
Finite Life
Method
Ratio of expected cash flows/economic benefits
1st preference
SLM, WDV, UOP over useful life
2nd preference
Useful life
Review every year + Prospective changes
Salvage Value
Assumed to be 0 unless there is an active market for disposal or commitment by third party to purchase it
Impairment
Only when there are indications
Infinite Life
No amortisation
Annual impairment test
De-Recognition
Disposal
Retirement
Transfer profit/loss to SOPL
Disclosures
General
Useful life
Amortisation method : Asset wise
Carrying amt. & acc. amortisation at beginning and ending
Annual impairment test results
Revalued assets with reconciliation
Written off research exp.
Other
Additional disclosures by mgt
OR