CHAPTER 13
Intangible Assets (IAS 38)
13.1
OBJECTIVE An intangible asset is one that has no physical form, although it exists from contractual and legal rights and has an economic value. The objective of IAS 38 is to allow entities to identify and recognize separately the value of intangible assets on the Statement of Financial Position, providing certain conditions are satisfied. IAS 38 enables users to more accurately assess the value as well as the makeup of assets of the entity.
13.2
SCOPE OF THE STANDARD IAS 38 applies to all intangible assets that are not specifically dealt with in another standard. Examples include brand names, computer software, licenses, franchises, intangibles under development, and goodwill. Examples of assets dealt with by other standards include Financial Instruments, addressed in IAS 32, and the Exploration for and Evaluation of Mineral Resources, addressed in IFRS 6. IAS 38 prescribes the accounting treatment of intangible assets, including ■ ■ ■ ■ ■
13.3
the definition of an intangible asset; recognition as an asset; determination of the carrying amount; determination and treatment of impairment losses; and disclosure requirements.
KEY CONCEPTS 13.3.1 An intangible asset is an identifiable nonmonetary asset ■ ■
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without physical substance; that is separable—in other words, that is capable of being separated from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, asset, or liability; or that arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or other rights and obligations.
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