Intangible assets are merely pieces of paper that represent something far more valuable to an entity. A business would therefore want to bring that value into its accounting records as capitalised assets.
There may be the desire for an entity to recognise any of the following as an intangible asset:
- Research and development
- Internally created logos, trademarks, copyright, customer databases
- Goodwill
- Purchased software / licenses
Understanding whether you indeed have an intangible asset or not, requires guidance, and for this we turn to IAS 38.
IAS 38: Intangible Assets
• Definitions
• Recognition and measurement:
o Separate acquisition
o Goodwill
o Internally generated intangible assets
o Expensing of intangible assets
• Subsequent Measurement – Cost VS Revaluation Model, Amortisation
• Useful Life: Finite VS Indefinite
• Disclosure
