it can also be the length of the contract that allows for the use of the intangible asset. Fixed assets are long-term assets such as plant, property and equipment. IAS 38 defines Intangible Assets and their Accounting Treatment. The length that the asset is expected to produce gains for the business. Volume A - A guide to IFRS reporting Volume B - Financial Instruments - IFRS 9 and related Standards Volume C - Financial Instruments - IAS 39 and related Standards IFRS disclosures in practice Model financial statements for IFRS reporters IAS 38: Intangible Assets. An asset is identifiable if… Derecognition. This Standard requires an entity to recognise an intangible asset if, and only if, specified criteria are met. Expected usage. IAS 38 requires that the fair value of an intangible asset should be measured by reference to an active market, therefore cost model is by far more popular than the revaluation model. IAS 38 requires, intangible assets which arises as a result of government grant are recognized either at fair value or nominal cost. 2-7) Definitions (paras. EC staff consolidated version as of 24 March 2010 Last EU endorsed/amended on 24.03.2010. Objective. When we have an asset that is controlled by the entity, future economic benefits are expected to be derived from the asset, there is lack of physical substance but the asset is identifiable, we speak about intangible assets as defined by the IAS 38 standard. Overview. 1The objective of this Standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Standard. Objective (para. IAS 38 International Accounting Standard 38 Intangible Assets Objective 1 The objective of this Standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Standard. 8-17) Recognition and measurement (paras. IAS 38 applies to all intangible assets, except those that are within the scope of another standard. The IAS 38 underlines certain factors that can be used to determine the life of an intangible asset, such as: 1. Therefore, the license received from government will be recognized at a fair value of $ 20 million. International Financial Reporting Standards (EU) Print Email. Retirements and disposals of intangible assets are covered in paragraphs IAS 38.112-117. Intangible Assets IAS 38 Intangible Assets IAS 38 Definition An intangible asset is an identifiable non-monetary asset without physical substance that the entity has control over identifiable The definition of an intangible asset requires an intangible asset to be identifiable to distinguish it from goodwill. According to IAS 38, Intangible Assets are Non-Monetary Assets without physical substance that are separable from the entity or arise as a result of some contractual or legal rights. 1) Scope (paras. IN1 Hong Kong Accounting Standard 38 Intangible Assets (HKAS 38) replaces SSAP 29 Intangible Assets (issued in 2001), and should be applied: (a) on acquisition to the accounting for intangible assets acquired in business combinations for which the agreement date is on or after 1 January 2005. For example, IAS 38 does not apply to the following: 1. intangible assets held by an entity for sale in the ordinary course of business (IAS 2: Inventories); 2. deferred tax assets (IAS 12: Income taxes); 3. IAS 38 was revised in March 2004 and applies to intangible assets acquired in business combinations occurring on or after 31 March 2004, or otherwise to other intangible assets for annual periods beginning on or after 31 March 2004. 68-71) 18-67) Recognition of an expense (paras. IAS 38 Intangible Assets. Agile approach Assets and their Accounting Treatment for intangible assets are long-term assets such as plant, property and.! 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