IAS 38-Intangible Assets specifies the criteria that must be met before intangible asset can be recognised by an entity in its financial statements. Intangible assets are identifiable non- monetary assets without physical substance and include goodwill, brand, copyrights and patents. They could be purchased and /or internationally generated. Required: Identify any TWO characteristics of goodwill which distinguish it from other intangible assets. Evaluate THREE differences between purchased goodwill and non-purchased goodwill. Identify any THREE conditions that must be met under IAS 38 for development expenditure to be recognised as an intangible asset. Identify the main FOUR factors to be considered in estimating the useful life of an intangible asset.
IAS 38-Intangible Assets specifies the criteria that must be met before intangible asset can be recognised by an entity in its financial statements. Intangible assets are identifiable non- monetary assets without physical substance and include
Required:
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Identify any TWO characteristics of goodwill which distinguish it from other intangible assets.
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Evaluate THREE differences between purchased goodwill and non-purchased goodwill.
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Identify any THREE conditions that must be met under IAS 38 for development expenditure to be recognised as an intangible asset.
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Identify the main FOUR factors to be considered in estimating the useful life of an intangible asset.
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