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98a 98b 98c 6 ² 56 rxqgdwlrq ³¹³ amortisation is

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98A98B98C,$6 ±²,)56 )RXQGDWLRQ$³·¹³
Amortisation is usually recognised in profit or loss. However, sometimes thefuture economic benefits embodied in an asset are absorbed in producingother assets. In this case, the amortisation charge constitutes part of the costof the other asset and is included in its carrying amount. For example, theamortisation of intangible assets used in a production process is included inthe carrying amount of inventories (see IAS 2Inventories).5HVLGXDO YDOXHThe residual value of an intangible asset with afiniteuseful life shall beassumed to be zero unless:(a)there is a commitment by a third party to purchase the asset at theend of its useful life; or(b)there is an active market (asdefinedin IFRS 13) for the asset and:(i)residual value can be determined by reference to thatmarket; and(ii)it is probable that such a market will exist at the end of theasset’s useful life.The depreciable amount of an asset with a finite useful life is determined afterdeducting its residual value. A residual value other than zero implies that anentity expects to dispose of the intangible asset before the end of its economiclife.An estimate of an asset’s residual value is based on the amount recoverablefrom disposal using prices prevailing at the date of the estimate for the sale ofa similar asset that has reached the end of its useful life and has operatedunder conditions similar to those in which the asset will be used. The residualvalue is reviewed at least at each financial year-end. A change in the asset’sresidual value is accounted for as a change in an accounting estimate inaccordance with IAS 8Accounting Policies, Changes in Accounting Estimates andErrors.The residual value of an intangible asset may increase to an amount equal toor greater than the asset’s carrying amount. If it does, the asset’s amortisationcharge is zero unless and until its residual value subsequently decreases to anamount below the asset’s carrying amount.5HYLHZ RI DPRUWLVDWLRQ SHULRG DQG DPRUWLVDWLRQ PHWKRGThe amortisation period and the amortisation method for an intangibleasset with afiniteuseful life shall be reviewed at least at eachfinancialyear-end. If the expected useful life of the asset is different from previousestimates, the amortisation period shall be changed accordingly. If therehas been a change in the expected pattern of consumption of the futureeconomicbenefitsembodied in the asset, the amortisation method shall bechanged toreflectthe changed pattern. Such changes shall be accountedfor as changes in accounting estimates in accordance with IAS 8.99100101102103104,$6 ±²$³·¹¹,)56 )RXQGDWLRQ
During the life of an intangible asset, it may become apparent that theestimate of its useful life is inappropriate. For example, the recognition of animpairment loss may indicate that the amortisation period needs to bechanged.

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Term
Spring
Professor
ahn jong
Tags
Test, International Financial Reporting Standards, IFRSs

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