Page 189 - F1 Integrated Workbook STUDENT 2018
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Non-current assets – IAS 23, IAS 38 & IAS 36
2.2 Recognition
IAS 38 Intangible Assets, states that an intangible asset should only be recognised if
it is probable that future economic benefits that are attributable to the asset will flow
to the enterprise and the cost of the asset can be measured reliably.
Internally generated Purchased separately Purchased as part of
whole business
Capitalise at cost if it is Capitalise at cost. Capitalise at fair value if
probable that future it can be reliably
benefits will flow to the measured.
enterprise & cost can be
measured reliably.
Internally generated If cannot be reliably
brands should not be measured, include
recognised. within goodwill.
Internally generated
goodwill should not be
recognised.
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