Page 150 - IC26 LIFE INSURANCE FINANCE

Cost of an Intangible Asset

Separate Acquisition: The cost of an intangible asset comprise of

Purchase Price

Irrecoverable Import duties and other taxes

Directly attributable expenditure incurred to make asset ready for intended use

The sum is reduced by trade discounts or rebates if any, to arrive at cost

Exchange of assets:

Intangible assets acquired in exchange of other assets are recorded at

 fair value of the intangible asset or

 fair value of the asset given up, whichever is more clearly evident.

By issue of shares or securities: If an intangible asset is acquired in exchange for shares or

other securities of the reporting enterprise, the asset is recorded at

 fair value of the intangible asset or

 fair value of the securities issued,

whichever is more clearly evident.

Acquired by amalgamation in nature of purchase: A transferee recognises an intangible asset

that meets the recognition criteria, even if that intangible asset had not been recognised

in the financial statements of the transferor; and

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