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INTANGIBLE ASSETS

Separate acquisition

• If an intangible asset is acquired separately, the cost of the

asset can usually be measured reliably, particularly so when

the purchase consideration is in the form of cash or other

monetary assets. (IAS 38.26)

• The cost of an intangible asset comprises:

• its purchase price, including import duties and other non-refundable
purchase taxes, after deducting trade discounts and rebates; and

• any directly attributable costs of preparing the asset for its intended
use. (IAS 38.27)

• Examples of directly attributable costs are:

• costs of employee benefits (defined in IAS 19) arising directly from

bringing the asset to its working condition;

• professional fees arising directly from bringing the asset to its
working condition; and

• costs of testing whether the asset is functioning properly. (IAS 38.28)

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