5) intangible assets

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

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/25/2012 for the course FIN 4319 taught by Professor Toles during the Fall '08 term at Texas State.

Page1 / 2

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online