An intangible asset is an asset that has no physical substance. Although it is not an asset that can be seen or touched, intangible assets are also valuable to an entity, and can influence its long-term performance. Several types of intangible assets are encountered in practice such as patent and trademark. Following are the statements related to intangible assets: (i) A sign which distinguishes the goods and services of one entity from those of another. (ii) A form of protection provided by the law to authors of original creative works, including literary works, musical works, artistic works, films, sound recordings, and broadcasts. (iii) The application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production or use. (iv) A method of marketing and distributing products and services based on a two-party contract. (v) An exclusive right granted for an invention, which is a product or a process that provides a new way of doing something or offers a new technical solution to a problem. (vi) A license required in order to use properties or rights owned by other entities, such as broadcasting licenses for radio and TV stations, licenses for insurers, and landing rights for airline operators. REQUIRED: (a) For each of the statement above, state the types of intangible assets that best suit them. (b) Identify and briefly explain the THREE (3) criteria of intangible assets based on MFRS 138 Intangible Assets.
An intangible asset is an asset that has no physical substance. Although it is not an asset that can be seen or touched, intangible assets are also valuable to an entity, and can influence its long-term performance. Several types of intangible assets are encountered in practice such as patent and trademark. Following are the statements related to intangible assets: (i) A sign which distinguishes the goods and services of one entity from those of another. (ii) A form of protection provided by the law to authors of original creative works, including literary works, musical works, artistic works, films, sound recordings, and broadcasts. (iii) The application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production or use. (iv) A method of marketing and distributing products and services based on a two-party contract. (v) An exclusive right granted for an invention, which is a product or a process that provides a new way of doing something or offers a new technical solution to a problem. (vi) A license required in order to use properties or rights owned by other entities, such as broadcasting licenses for radio and TV stations, licenses for insurers, and landing rights for airline operators. REQUIRED: (a) For each of the statement above, state the types of intangible assets that best suit them. (b) Identify and briefly explain the THREE (3) criteria of intangible assets based on MFRS 138 Intangible Assets.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:An intangible asset is an asset that has no physical substance. Although it is not an asset that can
be seen or touched, intangible assets are also valuable to an entity, and can influence its long-term
performance. Several types of intangible assets are encountered in practice such as patent and
trademark. Following are the statements related to intangible assets:
(i) A sign which distinguishes the goods and services of one entity from those of another.
(ii) A form of protection provided by the law to authors of original creative works, including
literary works, musical works, artistic works, films, sound recordings, and broadcasts.
(iii) The application of research findings or other knowledge to a plan or design for the
production of new or substantially improved materials, devices, products, processes,
systems or services before the start of commercial production or use.
(iv) A method of marketing and distributing products and services based on a two-party
contract.
(v) An exclusive right granted for an invention, which is a product or a process that provides
a new way of doing something or offers a new technical solution to a problem.
(vi) A license required in order to use properties or rights owned by other entities, such as
broadcasting licenses for radio and TV stations, licenses for insurers, and landing rights
for airline operators.
REQUIRED:
(a) For each of the statement above, state the types of intangible assets that best suit them.
(b) Identify and briefly explain the THREE (3) criteria of intangible assets based on MFRS
138 Intangible Assets.
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