Page 149 - IC26 LIFE INSURANCE FINANCE

INTANGIBLE ASSETS (AS 26)

This Accounting Standard does not apply to the following:

i. Intangible assets held for sale in the ordinary course of business (covered by AS 2)

ii. Deferred Tax Assets (covered by AS 22)

iii. Lease of Intangible Assets (covered by AS 19)

iv. Goodwill arising on amalgamation and on consolidation (covered by AS 14 & AS 21)

v. Expenditure in respect of termination benefit (covered by AS 15)

vi. Financial assets e.g. cash, receivables etc

vii. Mineral rights and expenditure on the exploration for, or development and extraction

of minerals, oil, natural gas and similar non-regenerative resources.

viii. Intangible assets arising in insurance enterprises from contracts with policyholders

Intangible Assets is an identifiable non-monetary asset, without physical substance, held for

use in the production or supply of goods or services, for rental to others, or for

administrative purposes.

Recognition of an Intangible Asset (General criteria) An intangible asset

should be recognised if, and only if:

 It is probable that the future economic benefits that are attributable to the asset

will flow to the enterprise; and

 The cost of the asset can be measured reliably.

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