MFRS 138 : INTANGIBLE ASSET
How to calculate initial cost???
cost
-trade discount
-rebates
+Any directly attributable cost of preparing the asset for intended use
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initial cost
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From -VE to +VE
problem = challenge
i don't know = i will find out
i will try = i will do it
Will be initially measured at COST
The sum of the expenditure incurred from the date when it meets the recognition criteria, to the date of its completion such as :
- Costs of materials and services used or consumed in generating the IA
- Costs of employee benefits arising from the generation of the IA
- Fees to register legal right
- Amortization
- Borrowing costs to the extent that they meet the capitalization criteria
- No future economic benefit
- Disposal
CA VS NET DISPOSAL VALUE
DEFINITION
CA > NDV = LOSS (EXPENSES)
CA < NDV = GAIN (REVENUE)
Identifiable non-monetary asset without physical substance.
CA=cost-acc amortisation- acc impairment loss
DISCLOSURE
Dr Deficit on revaluation
Cr Intangible Asset
based on revalued amount
Dr Intangible Asset
Cr Surplus on revaluation
Dr Cost
Cr Intangible Asset
recognised as expenses in current period
CLASSIFICATION
Intangible asset
Identification
Intangible asset is classified under MFRS 138.
RECOGNITION
Research & Development
yes, there is an element of asset.
- It is probable that the Future Economic Benefits that are attributable to the asset will flow to the entity.
- The cost of the asset can be measured reliably.
- Identifiable. (*It must be separable from the asset as a whole)
- Control over a resource.