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International Accounting Standards (IAS)
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| U.S. GAAP | IFRS, IAS | Accounting Topics |
International Accounting Standard (IAS) 38
Intangible Assets
International Financial
Reporting Standards (IFRS) |
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International Accounting
Standards (IAS) |
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U.S. GAAP by Topic |
| International Accounting Standard (IAS) 38 |
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IAS 38 Intangible
Assets Issued in
September 1998 Revised in
March 2004 Recent amendment:
by IFRS 3 revised in January 2008 |
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What is an
intangible asset? (1) an identifiable (2) non-monetary asset (3) that does not have physical substance |
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An
intangible asset is required to be identifiable --> this requirement distinguishes an intangible asset from goodwill |
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Initial
recognition --> an intangible asset is initially measured at cost |
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Measurement after recognition --> choose one of the following models: (1) cost model (2) revaluation model |
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Cost model --> carrying amount = cost - accumulated amortisation - accumulated impairment losses |
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Revaluation model --> carrying amount = revalued amount |
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Revalued
amount = fair value at the date of revaluation - subsequent accumulated amortisation - subsequent accumulated impairment losses |
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An
intangible asset with finite useful life --> amortised An
intangible asset with indefinite useful life--> not amortised |
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Amortisation methods include: (1) straight-line method (2) diminishing balance method (3) unit of production method |
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An
intangible asset with indefinite useful life --> required to test for impairment annually |
