Intangible Asset

Running Head : Name of StudentName of Subject CourseName of Professor3 March 2008 An impalpable is an summation of value that cannot be physically touched let off subject to amortization . Its becoming an summation is determined by the international accounting standard . It non-compliance with the standard has a irregular which affects decision makers . This seeks to support this assertion by analyzing what be these nonphysicals and the requirements for their basis and recognition and the consequence for non complianceThe international accounting standard (IAS ) regulates impalpables is (IAS ) 38 as enjoind by the accounting standards board (IASB in that compliancy are however opposite rules to a lower place the different standards on intangibles issued by the IASB but precisely the purpose of the IAS 38 is to ran k the accounting treatment for intangibles assets that are not deal with specifically in another(prenominal) IAS . The criteria under IAS 38 determine when to muster out intangible asset in the books and how to comply with the disclosure requirements in matters of preparing the financial statements of a company . To be considered as intangible asset , the same must(prenominal) be controlled by the endeavor as a result of past events which could either be by purchase or self-creation and prospective day scotch benefits must be expected by the enterprise . Said stinting benefits whitethorn take the form of cash in melds or other assets that play increase wealth of the enterpriseNot all kinds of intangible assets is g overned by the rules under IAS 38 .

What are not covered may include the following (1 ) financial assets (2 ) mineral rights and exploration and training bell incurred by mining and oil and gas companies (3 ) intangible assets arising from restitution contracts issued by insurance companies and (4 intangibles covered by the another(prenominal) IAS or IFRS such(prenominal) as intangibles held for sale , deferred tax assets , learn assets , assets arising from employee benefits , and goodwillBy definition higher up the following are therefore the attributes of an intangible : identifiability , control and future economic benefits which could take the form of revenues or reduced future costs . An asset is identifiable when it is up to(p) of being uncaring and sold transferred , licensed , rented , or transfer (Olsen and Halliwell 2007 Webster and Jensen , 2006 ) either one after another or part of the package and (2 ) arises from contractual or other legal rights . There is contro l when it has the cause of obtaining benefits from the assetUnder IAS 38 , an intangible could only be recognized as asset whether the asset is self-created or purchase if the following are requirements are complied with (1 ) it is apparent that future economic benefits that are credited(predicate) to the asset will flow to the enterprise and (2 ) the cost of the asset can me measured faithfully . If the asset is generated internally there is additional requirement . It is inevitable that the probability of future economic benefits must be base on reasonable and supportable assumptions and conditions that will exist over the life of the assets (IAS 38 . It will be observed...If you want to take a full essay, set up it on our website: OrderEssay.net

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