5) intangible assets

5) intangible assets - 5 Intangible Assets What is an...

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5) Intangible Assets What is an Intangible Asset? IAS 38 Intangible Assets defines an intangible asset as an “identifiable nonmonetary asset without physical substance. An asset is a resource that is controlled by the entity as a result of past events (for example, purchase or self-creation) and from which future economic benefits (inflows of cash or other assets) are expected”. IAS 38 gives the following examples of classes of intangible assets: computer software patents copyrights motion picture films customer lists mortgage servicing rights licenses import quotas franchises customer and supplier relationships marketing rights Recognition Criteria for Intangible Assets 1. Identifiability – For an intangible asset to be identifiable, it must either be separable or arise from contractual or other legal rights, whether or not the asset can be separately disposed of. 2. Control – The entity must be able to exercise control over the potential future economic benefits inherent in an asset. The workforce of a company, no matter how uniquely skilled they
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