Wiley International Trends in Financial Reporting under IFRS: Including Comparisons with US GAAP, Chinese GAAP, and Indian GAAP

CHAPTER 14

INTANGIBLE ASSETS (IAS 38)

1. OBJECTIVE

1.1 The Standard addresses accounting for “intangible assets” (defined in International Accounting Standard [IAS] 38) other than those intangible assets that are covered by other International Financial Reporting Standards (IFRS) (i.e., financial assets, as defined by IAS 32, Financial Instruments: Presentation, or exploration and evaluation assets, covered by IFRS 6, Exploration for and Evaluation of Mineral Resources, or expenditure on the development and extraction of minerals, oil, natural gas, and similar nonregenerative resources).

1.2 If another IFRS prescribes the accounting for a specific type of intangible asset, the accounting of such intangible assets shall be in accordance with the provisions of those IFRS. For instance, goodwill acquired in a business combination, although an intangible asset, shall not be accounted under this Standard but should be recognized in accordance with the requirements prescribed in IFRS 3, Business Combinations. Similarly, this Standard will not apply to certain other intangible assets specifically covered by other IFRS (including deferred assets [covered by IAS 12, Income Taxes]; leases [covered by IAS 17, Leases]; or assets arising from employment benefits [covered by IAS 19, Employee Benefits]).

2. SYNOPSIS OF THE STANDARD

This Standard requires an entity to recognize an intangible asset when specified criteria are met.

2.1 An intangible asset is an identifiable nonmonetary asset without ...