What is an example of intangible assets?

An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory.

Which of the followings are examples of intangible asset under IAS 38?

Intangible assets may be carried at a revalued amount (based on fair value) less any subsequent amortisation and impairment losses only if fair value can be determined by reference to an active market….Revaluation model.

• production quotas.
• fishing licences.
• taxi licences.

Which intangible asset can be Recognised in the financial statement according to IAS 38?

Examples of intangible assets include computer software, licences, trademarks, patents, films, copyrights and import quotas. Goodwill acquired in a business combination is accounted for in accordance with IFRS 3 and is outside the scope of IAS 38.

What is intangible asset impairment?

Intangible assets include goodwill, or the value associated with the company’s name and reputation. Also, patents, trademarks, and copyrights are assigned a value and reported as intangible assets. Impairment occurs when an intangible asset is deemed less valuable than is stated on the balance sheet after amortization.

What is the most common intangible asset?

The main types of intangible assets are Goodwill, brand equity, Intellectual properties (Trade Secrets, Patents, Trademark and Copywrites), licensing, Customer lists, and R&D. Usually, the values of intangible assets are not recorded in the balance sheet.

Is it possible to capitalize internally generated assets IAS 38?

Other internally generated assets IAS 38 prohibits capitalizing these assets if created internally, because it’s hard if not impossible to measure their cost reliably.

What is criteria to capitalize development costs as IAS 38?

Development phase Under IAS 38, an intangible asset arising from development must be capitalised if an entity can demonstrate all of the following criteria: the technical feasibility of completing the intangible asset (so that it will be available for use or sale) intention to complete and use or sell the asset.

What is impairment example?

Impairment in a person’s body structure or function, or mental functioning; examples of impairments include loss of a limb, loss of vision or memory loss. Activity limitation, such as difficulty seeing, hearing, walking, or problem solving.

What is impairment of assets example?

Generally, an asset impairment occurs when a company (1) pays more than book value for a set of assets and (2) later lowers the value of those assets. Because Company XYZ paid $15 million for $10 million worth of assets, Company XYZ records $5 million of goodwill as an asset on its balance sheet.

What are the five intangible assets?

Examples of intangible assets include goodwill, brand recognition, copyrights, patents, trademarks, trade names, and customer lists. You can divide intangible assets into two categories: intellectual property and goodwill.

What are examples of fixed assets?

Fixed assets can include buildings, computer equipment, software, furniture, land, machinery, and vehicles. For example, if a company sells produce, the delivery trucks it owns and uses are fixed assets. If a business creates a company parking lot, the parking lot is a fixed asset.

What do you need to know about IAS 38?

IAS 38 full text Overview IAS 38 Intangible assets gives guidance on the accounting treatment for intangible assets that are not dealt with specifically in another standard. It requires an entity to recognize an intangible asset upon fulfillment of certain recognition criteria.

What does IAS 38, intangible assets, landing rights mean?

IAS 38, intangible assets, landing rights. Intangible assets acquired are recognised to the extent it is considered probable that expected future benefits will flow to the Company and the associated costs can be measured reliably.

Which is an example of an IAS case?

In year 1, an entity acquires 250 machines with useful lives of 20 years, in year 12, the carrying amount of the property plant and equipment is 2,000,000, at the end of this year, the entity changes its accounting policy because it considers that the depreciation by components better shows the economic reality of the company.

What does paragraph 42 of IAS 8 mean?

In accordance with paragraph 42 of IAS 8, an entity shall correct material errors of prior periods, retrospectively, in the first financial statements formulated after the erros have been discovered.