Page 29 - PowerPoint Presentation

INTANGIBLE ASSETS

Revaluation model

• The revaluation model does not allow:

• the revaluation of intangible assets that have not previously been recognised as assets, or
• the initial recognition of intangible assets at amounts other than their cost. (IAS 38.76)

• The revaluation model is applied after an asset has been initially recognised at cost. However, if
only part of the cost of an intangible asset is recognised as an asset because the asset did not
meet the criteria for recognition until part of the way through the process, the revaluation
model may be applied to the whole of that asset.

• Also, the revaluation model may be applied to an intangible asset that was received by way of a
government grant and recognised at a nominal amount. (IAS 38.77)

• The frequency of revaluations depends on the volatility of the fair values of the intangible
assets being revalued. (IAS 38.79)

• If an intangible asset is revalued, any accumulated amortisation at the date of the revaluation is
either:

• restated proportionately with the change in the gross carrying amount of the asset so
that the carrying amount of the asset after revaluation equals its revalued amount, or
• eliminated against the gross carrying amount of the asset, and the net amount restated
to the revalued amount of the asset. (IAS 38.80)
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