Essential Elements of an Applies to all intangible Recognition

Intangible Asset
Intangible Asset Assets except

Identifiable Identifiability Goodwill acquired in a future economic

business combination benefits are expected
No physical Seperable
substance Intagible assets
held as inventory
Legal right Cost of the asset can
non-monetary
be measured reliably
intangible assets
Control classified as held for
sale
Meets definition of
Measurement intangible asset

Initially at Cost Internally Generated

Intangible Assets
Depends
Seperate
on how it
Acquisition
is acquired
PAS 38 Research Phase Development
Purchase Cost + Phase
Deffered Payment Direct Costs will be
Amortization always capitalzed if it
can Fair
Fair value
value at
at
Cash Price Acquired in Business expensed demonstrate all acquisition
acquisition date
date
Combination Straight line of the following
Equivalent
method

availability of Fair value to

intention at
Fair value at Diminishing
by way of adequate technical, acquisition
complete or date
sell it
Government Grant acquisition date balance method can be used
financial, and other
as long as
units of production appropriate resources
method ability to use or sell
Fair Value or Exchange of Assets the intangible asset
nominal amount ability to be
finite life is
amortized measured reliably
fair value generate probable
Internally Generated indefinite life is not
future economic
amortized benefits
if lacking commercial
substance or fair value is
not reliably measured required to test for
all directly impairment by comparing Derecognition
attributable costs
Carrying its recoverable amount iwth
carrying amount, annualy
necessary to amount
create, produce,
and prepare cost less any accumulated
On disposal
amortization and any
accumulated impairment
Cost Model
Subsequent losses
no future economic
Measurement carried at a
revalued fair value at the date of benefits are expected
amount revaluation less any from its use or disposal
Revaluation Model subsequent accumulated
amortization or any impairment
losses