BÀI GIẢNG kế TOÁN QUỐC tế chapter 10 intangible non current assets

Chapter 10INTANGIBLE NON-CURRENT ASSETS... Deferred development costs... Intangible non-current assets • Non-current assets which have a value to the entity but no physical substance...

Chapter 10

INTANGIBLE NON-CURRENT

ASSETS

Learning Objectives

1 Intangible non-current assets

2 Deferred development costs

Intangible non-current assets

• Non-current assets which have a value to the entity but no physical substance.

• Examples:

– Goodwill (see Chapter 19 on partnerships)

– Leases

– Patents and trade names

– Research and development costs

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Deferred development costs

IAS 38 Intangible assets

• Pure or basic research

• Applied research

• Development expenditure can sometimes be

capitalised under special circumstances All five criteria stated under IAS 38 must be fulfilled

Deferred development costs

Five criteria stated under IAS 38

Intangible assets

•Technical feasibility of completing the asset

•Intention to complete the asset

•Ability to use or sell the asset

•Generate probable future economic benefits

•Ability to measure the attributable expenditure

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Deferred development costs

Capitalised development costs must be amortised systematically once commercial production begins Each project must be reviewed annually to ensure deferral is still appropriate

•Amortisation: An intangible asset with an

indefinite useful life is not amortised but should be reviewed each year for impairment

•Impairment: Development costs should be written

Deferred development costs

Disclosure

• Method of amortisation used

• Useful life of the assets or amortisation rate used

• Gross carrying value, accumulated depreciation and accumulated impairment losses at beginning and end of period

• Movements during the period

• Carrying amount of internally-generated intangible assets

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