Page 31 - 2018 Finac1 Test 3 Class Slides - 2. Intangible Assets

TEST 3 PREPARATION

Measurement after recognition

Cost model

• After initial recognition, an intangible asset shall be carried

at its cost less any accumulated amortisation and any
accumulated impairment losses. (IAS 38.74)

Revaluation model

• After initial recognition, an intangible asset shall be carried

at a revalued amount, being its fair value at the date of the

revaluation less any subsequent accumulated amortisation
and impairment losses.

• Fair value shall be determined by reference to an active

market.

• Revaluations shall be made with such regularity that at the

end of the reporting period the carrying amount of the

asset does not materially differ from its fair value. (IAS
38.75)

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