INTANGIBLE ASSET

PAS 38 An indentifiable nonmonetary asset without physical substance

DEFINITION

to distinguish from goodwill capable og being

separable separated from the
Identifiability entity
Identifiable when:
INTANGIBLE ASSETS

regardless whether the

arise from contractual/
it must be under control of rights are transferable
legal rights
the entity as a result of past or separable
Essential
Criteria event
Control
stem out of legal rights but
is not always necessary

includes revenue from the

Future Economic
sale, cost savings, other
Benefits
benefits

 Identifiability – intangible asset must be identifiable in order to distinguish

clearly from goodwill
 Control – is the power of the entity to obtain the future economic benefits INITIAL MEASUREMENT
flowing from the itangible asset and restrict the access of others to those
PAS 38 paragraph 24, intangible asset shall be measured initially at COST.
benefits.
 Future economic benefits – may include revenue from the sale of products or
service, cost savings or other benefits resulting from the use of the asset by
the entity.
Acquired separately

Separate acquisition
INTANGIBLE ASSET

It is probable that future Payment is deffered beyong

Acquisition as a part of a normal credit terms
economic benefits business combination
attributable to the asset will
Recognize if two flow to the entity COST
Depending Acquisition by way of a
conditions are on government grant
met:
the cost of the intangible
asset can be measured Acquisition by exchange
reliably
Acquisition by self-
creation or internal
generation
RECOGNITION

Judgment is usually exercised in assessing the degree of certainty of the future

economic benefits.
Judgment is based on external evidence