Philippine Accounting Standards 38: Intangible Assets

nonmonetary asset WITHOUT PHYSICAL SUBSTANCE
1. Identifiability
2. Control
3. Future economic benefits
INITIAL MEASUREMENT
1. Cost
  1. SEPARATE ACQUISITION: Cash or Cash Price Equivalent
  2. ACQUISITION BY BUSINESS COMBINATION: Fair value on acquisition
  3. Subsequent Expenditures: Expense
  4. ACQUISITION BY GOVERNMENT GRANT: (a) Fair value; (b) Nominal amount or zero + directly attributable expenses
  5. ACQUISITION BY EXCHANGE: (a) Fair value: with commercial substance; (b) Carrying Amount: lacks commercial substance
  6. INTERNALLY GENERATED INTANGIBLE: Not recognized as an asset
SUBSEQUENT MEASUREMENT
1. COST MODEL: Cost less Accumulated Amortization less Accumulated Impairment Loss
2. REVALUATION MODEL: Revalued Amount less Subsequent Amortization less Accumulated Impairment Loss
AMORTIZATION OF INTANGIBLE ASSETS
1. Finite Life
  1. pattern used by the entity, otherwise, straight line method
    1. change in amortization method or useful life shall be treated currently and prospectively
2. Indefinite Life
  1. not amortized, only tested for impairment

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	Created by Joen Jacob Ramas about 9 years ago