Philippine Accounting Standards 38: Intangible Assets

Philippine Accounting Standards 38: Intangible Assets

1. nonmonetary asset WITHOUT PHYSICAL SUBSTANCE

   • Identifiability
   • Control
   • Future economic benefits

2. INITIAL MEASUREMENT

   • Cost
     • SEPARATE ACQUISITION: Cash or Cash Price Equivalent
     • ACQUISITION BY BUSINESS COMBINATION: Fair value on acquisition
     • Subsequent Expenditures: Expense
     • ACQUISITION BY GOVERNMENT GRANT: (a) Fair value; (b) Nominal amount or zero + directly attributable expenses
     • ACQUISITION BY EXCHANGE: (a) Fair value: with commercial substance; (b) Carrying Amount: lacks commercial substance
     • INTERNALLY GENERATED INTANGIBLE: Not recognized as an asset

3. SUBSEQUENT MEASUREMENT

   • COST MODEL: Cost less Accumulated Amortization less Accumulated Impairment Loss
   • REVALUATION MODEL: Revalued Amount less Subsequent Amortization less Accumulated Impairment Loss

4. AMORTIZATION OF INTANGIBLE ASSETS

   • Finite Life
     • pattern used by the entity, otherwise, straight line method
       • change in amortization method or useful life shall be treated currently and prospectively
   • Indefinite Life
     • not amortized, only tested for impairment