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IAS 38 Intangible Assets - Coggle Diagram
IAS 38 Intangible Assets
1. Definition
Identifiable non-monetary asset without physical substance
Separable
Arises from contractual / legal rights
2. Recognition
Probable future economic benefits flow into the entity
Cost can be measured reliably
Controlled by the entity
3. Measurement & Presentation
Initial
Acquired
Part of business combination
Recognise at fair value
Government grant
Recognise at fair value or nominal value + direct expenditure
Separate acquisition
Recognise purchase price
Internally generated
Research cost
Expense off in P/L
Development cost
Capitalise if meets PIRATE criteria
Resource adequate
Available to use
Intention to use
Technology feasibility
Probable future economic benefits
Expenditure can be measured reliably
Goodwill
Not recognised
Susequent
Cost Model
Definite useful life
Amortisation spread over useful life
When production phase has started
Expense off in SOPL
Indefinite useful life
Annual impairment review
Revaluation Model
at fair value
ON THE CONDITION
that an active market exists
Gain
Charge to OCI and OCE
Loss
Charge to OCI and OCE, up to remaining amount in OCE
Otherwise, expense off in SOPL