Page 19 - 2018 Finac1 Test 3 Class Slides - 2. Intangible Assets

TEST 3 PREPARATION

Recognition & measurement

• An intangible asset shall be recognised if, and only if:

• it is probable that the expected future economic benefits that

are attributable to the asset will flow to the entity; and

• the cost of the asset can be measured reliably. (IAS 38.21)

• An entity shall assess the probability of expected future

economic benefits using reasonable and supportable

assumptions that represent management's best estimate

of the economic conditions that will exist over the useful

life of the asset. (IAS 38.22)

• An intangible asset shall be measured initially at cost. (IAS

38.24)

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