Page 12 - Finac1 Test 3 slides - 2. Intangible Assets

TEST 3 PREPARATION

Intangible assets

• The components of the definition of an intangible asset are:

• identifiable,

• non-monetary asset,

• without physical substance,

• controlled as a result of past events, and

• expected inflow of future economic benefits. (IAS 38.08)

• If an item covered by this standard does not meet the
definition of an intangible asset, expenditure to acquire it or

generate it internally is recognised as an expense in the

statement of comprehensive income when it is incurred.

• However, if the item is acquired in a business combination, it forms
part of the goodwill recognised at the date of acquisition. (IAS

38.10)

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