IAS 38 Intangible Assets
LEARNING OBJECTIVE
1.DEFINITION
2.MEASUREMENT AFTER INITIAL RECOGNITION
3.GOODWILL, R&D
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1. DEFINITION
An intangible asset is an identifiable non-monetary asset without physical substance.
Intangible assets include items such as:
-Licences
-Intellectual property, e.g. patents and copyrights
-Brand names
-Trademarks
-Goodwill
For an asset to be identifiable, it must fall into one of two categories:
1.It is separable- the asset can be bought or sold separately from the rest of the business
2.It arises from legal/contractual rights- this will arise as part of purchasing an entire company.
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