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A.

DEFINITIONS
Intangible assets are identifiable non-monetary asset without physical
form. Entities frequently expend resources and create liabilities in the acquisition,
development, maintenance and enhancement of intangible resources. Elements
that meet the definition of intangible assets, namely the identification, control
over resources, and the future economic benefits.
1) Identification
Identification of the intangible asset can be clearly distinguished by
goodwill.. Goodwill in a business combination is recognized as an asset entity
that describes the future economic benefits arising from other assets acquired in
a business combination that are not individually identified and separately
recognized. An asset is said to be identifiable if:

Can be separated, which can be separated or distinguished from the entity


and sold, transferred, licensed, rented or exchanged, either individually or
together with a related contract, identifiable assets or liabilities are
identified, regardless of whether the entity intends to do so.

Arises from contractual rights or other legal rights, regardless of whether


those rights can be transferred or separated from the entity or of rights
and obligations.

2) Control Over Resources


Entity controls an asset if the entity has the ability to obtain future economic
benefits arising from the asset and can limit access to other parties in obtaining
the economic benefits. The ability of an entity to control the future economic
benefits of an intangible asset generally arise from legal rights that can be
enforced in court. But legal rights is not a requirement that is required.
Future economic benefits arising from an intangible asset may include revenue
from the sale of goods or services, cost savings, or other benefits derived from
use of the asset by the entity. For example, the use of intellectual property in a
production process does not increase future income, but reduce the cost of future
production.

B. RECOGNITION AND MEASUREMENT


Intangible assets are recognized if and only if:

Most likely the entity will obtain future economic benefits from these
assets.

The acquisition cost of the asset can be measured reliably.

In assessing possible future benefits, the entity using the assumptions of rational
and accountable which is management's best estimate of the economic
conditions prevailing throughout the useful life of the asset.
1) Acquisition Separated
Intangible assets are initially recognized at cost. The acquisition cost of intangible
assets consists of:
a) The purchase price, including import duties and taxes that cannot be
restitution, after deducting discounts and rebates.

b) All costs that are directly attributable to preparing the asset so it is ready for
use.

2) Acquisition as Part of a Business Combination


In accordance with PSAK 22 (revised 2010), Business Combinations, if an
intangible asset acquired in a business combination, the acquisition cost of
intangible assets is the fair value of the asset at the acquisition date. The
acquirer recognizes at the acquisition date, the intangible assets acquired
separately from goodwill, irrespective of whether the asset was recognized or not
recognized by the acquiree before the business combination.

3) Measuring Fair Value of Intangible Assets Obtained in a Business


Combination
If the intangible assets resulting from business combinations can be separated or
arise from contractual rights or other legal rights, it is sufficient information to
measure the fair value of the assets is reasonable. If when measuring the fair
value of intangible assets are various possibilities for the results with different
probabilities, that uncertainty is included in the calculation of the fair value of
intangible assets.
Quoted market price in an active market provide the estimated fair value of the
most reliable for intangible assets. Appropriate market price is usually the current
bid price. If not available, then the current price of similar transactions can be the
basis for estimating the fair value of all assets there is no significant change in
economic circumstances between the transaction date and the date when the fair
value of the asset is estimated.
If there is no active market for intangible assets, the fair value of these assets is
the amount that an entity willing to pay to acquire these assets, at the
acquisition date, in an arm's length between knowledgeable and willing parties
based on the best information available. In determining the value of the entity
considers the outcome of recent transactions for similar assets.

4) The acquisition by government grants


Intangible assets can be acquired through government grants if the government
transfer of intangible assets to the entity. Entities can choose to admit intangible
asset initially at fair value by recognizing the nominal value plus any expenditure
that is directly attributable to preparing the asset to be used in accordance with
the intended use.

5) The exchange of assets


Intangible assets acquired through exchange with other assets, its cost is
measured at fair value, except for:
a) the exchange transaction lacks commercial substance
b) The fair value of assets received and delivered can not be measured reliably.
If the acquired asset is not measured at fair value, its cost is measured at the
carrying amount of the asset transferred.

The fair value of an intangible asset can be measured reliably although no similar
market transaction if:
a) Variability range of the estimated fair value for these assets is not significant.
b) The probability of the various estimates within the range can be assessed
rationally and used in determining fair value.

6) Goodwill generated internally


Entities that make expenditures to generate future economic benefits, but such
spending does not result in the emergence of an intangible asset that can be
recognized are considered to contribute to the emergence of internally generated
goodwill. Internally generated goodwill is not recognized as an asset because
goodwill is not an identifiable resource (can not be separated and do not arise
from contractual rights or other legal rights) controlled by the entity can be
measured reliably and cost.

7) Intangible assets generated internally


In determining whether an intangible asset that is generated internally qualify for
recognition, an entity classifies intangible assets resulting process into stages of
research (research stage) and the stage of development
a) Stage Research
The entity does not recognize the intangible asset arising from research. In the
research phase of an internal project, an entity can not demonstrate that an
intangible asset that there will likely economic benefits in the future. Thus,
expenditure on research is recognized as an expense when incurred.
b) Development Phase
Intangible asset arising from development is recognized if, and only if, an entity
can demonstrate all of the following:

the technical feasibility of completion of intangible assets so that it can be


used or sold.

the intention to complete the intangible asset and use or sell it.

the ability to use or sell the intangible asset.

How the intangible asset will generate likely future economic


benefits. Among other entity able to demonstrate the existence of a
market for the output of the intangible asset or when used internally, the
entity is able to demonstrate the usefulness of the intangible asset.

The availability of adequate technical resources, financial and other


resources to complete the development of an intangible asset and to use
or sell the asset, and

The ability to measure reliably the expenditure associated with the


intangible asset during its development.

Expenditures to produce the brand, the head of the newspaper, the title of
publicity, customer lists and things that are substantially similar to that
generated internally can not be distinguished with the cost of developing the
business as a whole. Therefore, it is not recognized as an intangible asset.

8) The cost of intangible assets generated internally


The acquisition cost of intangible assets generated internally is the amount of
expenditure incurred from the date the intangible asset first meets the
measurement criteria. The acquisition cost of intangible assets generated
internally composed of all the costs involved are directly attributable to create,
produce and prepare the asset to be ready for use in accordance with the
intention of management.

C. RECOGNITION OF EXPENSES
Expenditures for intangible assets are recognized as an expense when incurred,
except for:
a) expenditures that are part of the cost of intangible assets that meet the
recognition criteria.
b) Something that is acquired through a business combination and can not be
recognized as intangible assets. If so, then the expenditure is part of goodwill at
the acquisition date.

Load Past Should Not Recognized as Assets


Expenditure on postal intangible assets initially recognized by the entity as an
expense are not recognized as part of the cost of an intangible asset at a later
date.

D. MEASUREMENT AFTER RECOGNITION


The entity chosen the cost model or the revaluation model as its accounting
policy. If intangible assets are accounted for using the revaluation model, all the
other assets in the group treated using the same model, unless there is no active
market for those assets.
1) Cost Model
After initial recognition, intangible assets are recorded at revalued amount, which
is fair value at the date of revaluation less subsequent accumulated amortization
and accumulated impairment losses further. For the purpose of revaluation, the
fair value is determined by using a reference from the current market value.
Revaluation done regularly so that at the end of each reporting period the
carrying amount of intangible assets that do not have a material difference to the
fair value.
The revaluation model does not allow:
a) Revaluation of intangible assets not previously recognized as an asset.
b) the initial recognition of intangible assets in a certain amount other than cost.
If the intangible assets revaluated, the accumulated amortization at the date of
revaluation:
Restated proportionately with the change in the gross carrying amount of the
asset so that the carrying amount of the asset after revaluation becomes equal to
the revaluation value, or

Eliminated against the gross carrying amount of the asset and the net amount
after the elimination presented in accordance with the value of the asset
revaluation.

If an intangible asset in a group of the revaluation of intangible assets can not be


revalued because there is no active market for the intangible asset, the
intangible assets are recorded at cost less accumulated amortization and
impairment loss amortization.

If the fair value of intangible assets are revalued no longer be determined by


reference to an active market, the carrying amount of the intangible asset is
revalued amount at the date of the last time a revaluation is done with reference
to an active market value less accumulated amortization and accumulated
impairment losses.
If the carrying amount of intangible assets increased as a result of revaluation,
the increase is recognized in other comprehensive income and accumulated in
equity in the revaluation surplus. However, the increase is recognized in the
income statement to reverse the decline in the revaluation of assets previously
recognized in profit or loss.
If the carrying amount of intangible assets decreased as a result of revaluation,
the decrease is recognized in profit or loss. However, the decrease is recognized
in other comprehensive income if there is a credit balance in the revaluation
surplus on that asset. Recognition of a decrease in other comprehensive income
reduces the amount accumulated in equity in the revaluation surplus.
E. AGE BENEFITS
Entity to assess whether the estimated useful life of intangible assets is limited or
unlimited and, if limited, period of time or number of production or similar units
quantity produced during useful life. Intangible assets are considered by the
entity to have an indefinite useful life when, based on an analysis of all relevant
factors there is no limit in sight at the moment on which the period the asset is
expected to generate net cash flow to the entity. Intangible assets with limited
life are amortized and intangible assets with an unlimited economic life are not
amortized.
Useful life of intangible assets arising from contractual rights or other legal rights
is not longer than the period of the contractual rights or other legal rights are,
but may be shorter depending on the period when the asset can be used
entities. If the contractual rights or other legal rights have limits that can be
renewed, the useful life of intangible assets, including the renewal period only if
there is evidence to support renewal useful life poses no significant cost. Age
benefits acquired rights back as an intangible asset in a business combination is
the remaining period of the contractual rights granted and do not include renewal
periods.

1) Intangible Assets With Age Benefits Limited


The amortization period and amortization method
Depreciated amount of intangible assets with finite useful lives is allocated
systematically over their useful life. Amortization commences when the asset is
available for use, ie when the asset is at a location and in a condition to operate
in the manner intended by management. Amortization was discontinued in
whichever comes first time between when the assets are classified as assets held

for sale and the date when the asset is derecognized. Amortization method used
describe the consumption patterns of the entity over the future economic
benefits expected (including straight-line method, the declining balance method,
and the units of production method). If that pattern can not be determined
reliably, the straight-line method is used. Amortization charged for each period
are recognized in the income statement except as permitted by SFAS or requires
amortization is included in the carrying amount of another asset.

Residue Value
The residual value of intangible assets with finite useful life is assumed to be
zero, unless:
a) There is a commitment from a third party for the purchase of intangible assets
at the end of their useful life, or
b) There is an active market for the intangible asset and:

The residual value of intangible assets can be determined by reference to


the prevailing price in the market, and

There is a great possibility that the market will remain available until the
end of the useful life of the asset.

The residual value of intangible assets can be increased to an amount that is


equal to or greater than its carrying amount. If this happens, then the
amortization charge is zero unless and until the residual value subsequently
decreases to be lower than the carrying amount of the intangible asset.

Study Amortization Period and Amortization Method


The amortization period and method of amortization of intangible assets with
finite useful lives are reviewed at least each financial year end. If the estimated
useful life of the asset differs significantly in the forecast pattern of consumption
of economic benefits of the asset, the amortization method changed to reflect
the changed pattern. Treatment as changes in accounting estimates in
accordance with PSAK 25 (revised 2009) Accounting Policies, Changes in
Accounting Estimates and Errors.

2) Intangible Assets With Age Benefits Unlimited


Intangible assets with indefinite useful life are not amortized. In accordance with
PSAK 48 (revised 2009): Impairment of Assets, an entity is required to test an
intangible asset with an indefinite useful life for impairment by comparing the
recoverable amount with its carrying amount annually and whenever there is an
indication that the intangible asset is impaired.

Study Assessment Age Benefits


Useful lives of intangible assets are not amortized are reviewed each period to
determine whether events and conditions may continue to support the
assessment that the useful life remains limited. If not, then the change in useful
life that appears not limited to be limited treated as changes in accounting
estimates in accordance with PSAK 25 (revised 2009) Accounting Policies,
Changes in Accounting Estimates and Errors.

F. TERMINATION AND DISPOSAL


Intangible assets are derecognized when:

Removed

When there are no further future economic benefits are expected from its
use or disposal.

Gains and losses arising from derecognition of intangible assets is the difference
between the net disposal value and the carrying amount of the asset. Gains and
losses are recognized in the income statement upon derecognition. Except for
PSAK 30 (revised 2007): lease requires otherwise on a sale and leaseback, profit
is not recognized as revenue.

G. DISCLOSURE
An entity shall disclose the following for each group of intangible assets,
allocated between intangible assets that are internally generated and other
intangible assets:
1. Indefinite useful life or unlimited and, if limited useful life is expressed, the
rate of amortization is used or useful life.
2. Amortization methods used for intangible assets with finite useful lives.
3. The gross carrying amount and accumulated amortization (in the
aggregate with accumulated impairment losses) at the beginning and end
of the period.
4. Heading in the income statement in which the amortization of intangible
assets included therein.
5. Reconciliation of the carrying amount at the beginning and end of the
period showed:

The addition, which separately indicates the intangible assets from internal
development, acquired separately, and acquired through business
combinations.

Assets are classified as assets held for sale or included in a group


removable assets classified as held for sale in accordance with PSAK 58
(revised 2009), Non-current Assets Held for Sale and Discontinued
Operations, and other outlets.

Increased or decreased during the period derived from the revaluation and
of the recognition of impairment losses or reversals in other
comprehensive income in accordance with PSAK 48 (revised 2009):
Impairment of Assets, if any.

An impairment loss is recognized in profit or loss during the period in


accordance with PSAK 48 (revised 2009).

An impairment loss is reversed in the income statement during the period


in accordance with PSAK 48 (revised 2009).

Each amortization recognized during the period.

Net foreign exchange differences arising from translation of financial


statements value to presentation currency and translation of foreign
operations to the presentation currency used entities, and

Changes in the carrying amount of the asset value during the period.

Entities also revealed:


a) For intangible assets are assessed with an indefinite useful life, the carrying
amount of the asset and the reasons supporting the indefinite useful life
assessment is. In giving reasons, the entity describes significant factor in
determining the assets have an unlimited lifespan.
b) A description, the carrying amount, and the remaining amortization period of
any intangible asset that is material to the financial statements of the entity.
c) For the intangible assets acquired through a government grant and initially
recognized at fair value:

Fair value on initial recognition of the asset

Its carrying amount, and

The asset is measured after initial recognition using the cost model or the
revaluation model.

d) The existence and carrying amounts of intangible assets whose ownership is


restricted and the carrying amount of intangible assets as collateral for liabilities.
e) The value of contractual commitments for the acquisition of intangible assets.
If the intangible assets are recorded at the revaluation, it shall disclose the
following:
(a) Based on the group of intangible assets:
1. The effective date of the revaluation
2. The carrying amount of intangible assets are revalued
3. The carrying amount that would be recognized if the intangible assets
measured using the cost model after initial recognition
(b) The amount of the revaluation surplus intangible assets at the beginning and
end of the period, indicating the changes during the period and any restrictions
on the distribution of the balance (surplus) to shareholders, and
(c) Method of significant assumptions in estimating the fair value of the asset.

Entities are encouraged, but not required to disclose the following information:
a) A description of the intangible assets were fully amortized but still in use.
b) A description of significant intangible assets controlled by the entity but not
recognized as assets because they do not meet the recognition criteria for assets
acquired or generated before PSAK 19: Intangible Assets effectively enforced.