Clear and detailed explanation on all of the following: overview, objectives, scope and definition on intangible asset of MRFS138
Clear and detailed explanation on all of the following: overview, objectives, scope and definition on intangible asset of MRFS138
Overview
An asset to be known as an intangible should have the following qualities:
- Identifiable and controllable
- Have some economic benefit in future
- And, it can be separated from the entity
- They should have legal rights.
The Intangible Asset of MFRS 138 covers how intangibles are identified, recognized, measured, and presented. The intangible assets have no physical presence and also are non-monetary.
Objectives
This standard has the objective of prescribing accounting treatment to those intangible assets that do not deal with any other AS (Accounting Standard) specifically.
This standard only allows declaring an asset as intangible if the specified criterion is met.
This standard also helps in measuring the intangible asset’s carrying amount.
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