Mindmap

Intangible assets (IA)

meyer cohn Financial accounting CTA 2 Englisch

Mind map: intangible assets

Inhalt der Mindmap

DEF: without physical substance; is identifiable; non-monetary; & meet asset DEF.
Identifiable criterion
- separable from entity & sold; OR arises from contractual/legal rights are transferable.
Recognition
- Probable future economic benefits flow to entity; & costs measured reliably.
Measurement (Initial)
- Separate acquisition
- Acquisition part of Bus. Combo
- Exchange transactions
- Acquisition by government grant
- Internally generated IA
  - Research phase: Recognise expenditure in P/L when incurred
  - Development phase
    - IA recogn. only IF: 1. IA will be available for use/sale; 2. Intention to complete to use/sell; 3. Ability to use/sell; 4. How IA will generate economic benefits; 5. Availability of resources to complete IA; 6. Reliably measure direct expenditure.
  - Brands, mastheads, publishing titles, customer lists not recogn. as IA (IAS38.63)
  - Website costs
    - Planning stage = Research stage
    - Graphical & content development: Capitalised only if development cost directly linked to prepare website for intended use, IF not expense to P/L
    - Operating stage: Expense to P/L