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. See IAS 38 for retirements and disposals (similar to IAS 16 derecognition for PP&E). Rights held under licensing agreements in scope of IAS 38 for items such as motion picture films, video recordings, plays, manuscripts, patent and copyrights* IAS 38 ‘Intangible Assets’ *for leases of other types of intangible asset a lessee is permitted to apply IFRS 16 but not required to do so 5-9) Recognition and measurement (paras. See IAS 36 for impairment testing. IV Example disclosures for entities that early adopt . Source: IFRS - IAS 36 Illustrative Examples Impairment of Assets – Illustrative examples Example 1 Identification of cash-generating units A - Retail store chain Background Store X belongs to retail store chain M. X makes all its retail purchases through M’s purchasing centre. 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. This Standard requires an entity to recognise an intangible asset if, and only if, specified criteria are met. However, the term ‘when incurred’ has been interpreted in different ways, leading to diversity in practice. approval by the board of ias 38 issued in march 2004 approval by the board of clarification of acceptable methods of depreciation and amortisation (amendments to ias 16 and ias 38) issued in may 2014 for the accompanying guidance listed below, see part b of this edition illustrative examples assessing the useful lives of intangible assets (b) Deferred tax assets (see IAS 12 Income Taxes). IAS 38: Intangible Asset or Expense? IAS 38 Intangible Assets Also refer: SIC-32 Intangible Assets – Web Site Costs Effective Date Periods beginning on or after 31 March 2004 Specific quantitative disclosure requirements: Measure acquired asset at its fair valueexpected future If not possible, at book value of asset given up. IAS 38 specifically prohibits the following internally generated intangible assets from being recognised: • goodwill • brands • mastheads • publishing titles • customer lists • item similar in substance cannot be distinguished from the cost of developing the business as a whole. IAS 38 Intangible Assets – Summary with Examples – PDF October 1, 2019 IAS 10 Events after the Reporting Period (VIDEO) October 1, 2019 IAS 7 Statement of Cash Flows – … Recently I had an argument with auditors of one company related to the customer list they bought. Illustrative Examples – IAS 38 Intangible Assets Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38) Full Library HMRC Archive Red and Green Archive News Archive Pricing, marketing, advertising and human resources policies IAS 38.SIC 32 . Cost = FV @acquisition date. In addition, IFRS and its interpretation change over time. IFRIC 32 applies IAS 38 to website costs. Presentation of Items of Other Comprehensive Income (Amendments to IAS 1 . (c) Leases to be included in the scope of IAS 17 Leases. Taxi medallions. These Illustrative Examples, Comparison with SFAS 141(R) and Table of Concordance accompany IFRS 3 Business Combinations (see separate booklet) and are published by the International Accounting Standards Board (IASB), 30 Cannon Street, London EC4M 6XH, United Kingdom. Intangible assets Topic summary provided by PwC, giving latest developments and overview, a summary of the standard and links to relevant resources. For-profit Prescribes the accounting treatment for intangible assets that are not dealt with specifically in another standard. Historical Financial Statements A.IV Historical Statement of Charges in Equity 38 PricewaterhouseCoopers Additional (all amounts expressed in HCU) historical Share Revaluation Translation Retained Total information Capital Reserve Reserve Earnings 10-33) Government grants (paras. 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 Transitional provisions and effective dates have been included. Author: Chris Grundling Created Date: This Standard requires an entity to recognise an intangible asset if, and only if, specified criteria are met. 1.Transitional provisions and effective dates have not been included. 1-4) Definitions (paras. IAS 38 has always required entities to recognise costs arising from advertising and promotional activities as an expense when the expenditure is incurred in the application of the standard. IAS 38 has illustrative examples. USEFUL LIFE Recognition criteria always considered met. Accordingly, this guide should not be used as a substitute for referring to the standards and other relevant interpretative guidance. IAS 38 International Accounting Standard 38 Intangible Assets ... For example, computer software for a computer-controlled machine tool that cannot operate without that specific software is an integral part of the related hardware and it is treated as property, plant and equipment. Presentation of Financial Statements) 231 V Example disclosures for entities that early adopt IFRS 9 . SIC 32 applies IAS 38 to website costs. [IAS 38.75] Such active markets are expected to be uncommon for intangible assets. 2. Import quotas. The Illustrative Examples accompanying this Standard illustrate the determination of useful life for different intangible assets, and the subsequent accounting for those assets based on the useful life determinations. Financial statements disclose corresponding information for the preceding period (comparatives), unless a Intangible assets (IAS 38) Regulatory deferral accounts (IFRS 14) Interim financial reporting (IAS 34) Related party disclosures (IAS 24) ... this publication is not providing any illustrative examples or guidance; Read More. Illustrative Example—Long-term Interests in Associates and Joint Ventures This example portrays a hypothetical situation illustrating how an entity (investor) accounts for long-term interests that, in substance, form part of the entity’s net investment in an associate (long-term interests) applying IFRS 9 and IAS 28 based on the assumptions IAS 41 requires number of disclosures. Viewpoint - Global. 39-57) Effective date and transition (paras. Illustrative IFRS consolidated financial statements - Investment property 2020. IAS 38 has illustrative examples. Chapter 7 – Illustrative example of IAS 29 A. See IAS 38 for retirements and disposals (similar to IAS 16 derecognition for PPE). Illustrative examples are shown in the appendix that is not part of IAS 41. Acquiree’s in-process research & development project: Under the revaluation model, revaluation increases are credited directly to "revaluation surplus" More Less. IFRS Manual of Accounting . Technical feasibility of completion of 1. 1. Disclaimer: To the extent permitted by applicable law, the Board and the IFRS Foundation (Foundation) expressly disclaim all liability howsoever arising from this publication or any translation thereof IAS 41 then deals with gains and losses, inability to measure fair value reliably, provides rules for government grants related to biological assets. For example, this Standard does not apply to: (a) Intangible assets held by the entity for sale in the ordinary course of its activities (see IAS 2 Inventories and IAS 11 Construction Contracts). Scope IFRS 16 specifies how an IFRS reporter will recognise, measure, present and disclose leases. NZ IAS 38 Intangible Assets. Following references to illustrative Examples that are not an integral part of IAS 38 or SIC 32 have not been included in INDAS 38. i.Reference to illustrative Examples in paragraph 89. by Silvia . IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . Financial Instruments (2010) 233 VI Example disclosures for entities that early adopt IAS 19 . The company paid significant amount of cash for the list of customers of telecommunications. Scope (paras. 34-38) Disclosure (paras. IAS 38 – Intangible Assets Timeline and summary from Deloitte IAS Plus, with information on related interpretations and amendments under consideration. ... 133 This Standard supersedes IAS 38 Intangible Assets … ... Financial liabilities and equity (IFRS 9, IAS 32) Chapters by name (Accounting to Fair value) Accounting policies, accounting estimates and errors (IAS 8) Consolidated financial statements (IFRS 10) The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. IAS 41: Agriculture. 58-65) Approval by the Board of Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41) issued in June 2014; IAS 41: Basis for Conclusions Menu. These Illustrative Examples accompany IFRS 17 Insurance Contracts (issued May 2017; see separate booklet) and are issued by the International Accounting Standards Board (the Board). 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