Page 5 - 2018 Finac1 Test 3 Class 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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