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MFRS 138 : INTANGIBLE ASSET

How to calculate initial cost???

INITIAL MEASUREMENT

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

DERECOGNITION

  • No future economic benefit
  • Disposal

CA VS NET DISPOSAL VALUE

DEFINITION

CA > NDV = LOSS (EXPENSES)

SUBSEQUENT MEASUREMENT

CA < NDV = GAIN (REVENUE)

Identifiable non-monetary asset without physical substance.

REVALUATION MODEL

COST MODEL

CA=cost-acc amortisation- acc impairment loss

  • Revalue the FV
  • FV ignores
  • FV vs CA

surplus or deficit

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.

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