Intangible Assets Overview

These flashcards cover key terminology and concepts related to intangible assets as defined in IAS 38, including criteria for recognition, measurement, and examples.

Intangible Asset

An identifiable non-monetary asset without physical substance.

Recognition Criteria

Conditions that must be met for an item to be recognized as an intangible asset: probable future economic benefits and reliable measurement of cost.

Identifiable Intangible Asset

An intangible asset that is separable or arises from contractual or legal rights.

Control

The power to obtain future economic benefits from a resource and restrict others from those benefits.

Measurement of Intangible Assets

Intangible assets are initially measured at cost, including purchase price and directly attributable costs.

Exclusions from Cost

Costs associated with marketing, training, and general overheads that cannot be capitalized when developing or acquiring an intangible asset.

Fair Value in Exchanges

The value assigned to an intangible asset in an exchange is the fair value of the asset given up unless the fair value of the asset received is more evident.

Legal Rights

Rights that must be enforceable by law for control over a resource to be established.

Examples of Intangible Assets

Trademarks, patents, licenses, copyrights, music, computer software, and franchises.

Intangible Asset Recognition

An intangible asset must be identifiable and controlled to be recognized in the financial statements.