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Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015
book

Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015

by Steven Collings
April 2015
Intermediate to advanced content levelIntermediate to advanced
546 pages
17h 36m
English
Wiley
Content preview from Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015

Chapter 12Intangible Assets

  1. Introduction
  2. Categories of Intangible Assets
  3. Recognition and Measurement
  4. Research and Development
  5. Amortisation
  6. Derecognition
  7. Disclosure Requirements

Introduction

Intangible assets are dealt with in Section 18 Intangible Assets other than Goodwill in FRS 102. Whilst goodwill is clearly an intangible asset, FRS 102 deals with the issue of goodwill in Section 19 Business Combinations and Goodwill. Impairment issues relating to intangible assets are covered in Section 27 Impairment of Assets. Section 18 also does not cover:

  • Deferred acquisition costs and intangible assets that have arisen from contracts that fall under the scope of FRS 103 Insurance Contracts (although the disclosure requirements in Section 18 do apply to such assets),
  • Intangible assets that are held for sale in the ordinary course of business,
  • Financial assets,
  • Mineral rights and mineral reserves (for example, oil, gas and similar non-regenerative resources) and
  • Heritage assets.

An intangible asset is an asset that does not have a physical substance – in other words, you cannot see or touch the intangible asset. In quite a lot of cases, the accounting for intangible assets can be a fairly complicated exercise in terms of how the asset is identified. For the purposes of financial reporting, an intangible asset is identifiable when it is capable of being separated or divided from the entity and then sold, transferred, licensed, rented or exchanged. An intangible asset is also identifiable ...

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Publisher Resources

ISBN: 9781118819258Purchase book