Download An intangible asset

Text II
Various items which must appear in the statement of financial position
as a minimum disclosure.
(a) Property, plant and equipment (Chapter 5)
(b) Investment property
(c) Intangible assets (Chapter 6)
(d) Financial assets
(e) Investments accounted for using the equity method (Chapter 13)
(g) Inventories (Chapter 5)
(h) Trade and other receivables (assumed knowledge)
(i) Cash and cash equivalents (Chapter 4)
(j) Assets classified as held for sale
(k) Trade and other payables (assumed knowledge)
(l) Provisions
(m) Financial liabilities
(n) Current tax liabilities and assets (Chapter 8)
(o) Deferred tax liabilities and assets (Chapter 8)
(C) / Chapter 6
1 An intangible asset is a non-monetary asset without physical substance.
2 At cost, providing that the recognition criteria are met, i.e:
(a) It is probable that the future economic benefits that are attributable to the asset
will flow to the entity.
(b) The cost can be measured reliably.
3 An intangible asset may only be revalued if it is part of an active market. An active
market is one in which items traded are homogenous, willing buyers and sellers are
available and prices are availableto the public.
4 Internally generated goodwill, brands, mastheads, publishing titles and customer
lists may not be capitalised as intangible assets.
5 Research is original and planned investigation undertaken with the prospect of
gaining new scientific or technical knowledge and understanding.
6 Development is the application of research findings or other knowledge to a plan or
design for the production of new or substantially improved materials, devices,
products, processes, systems or services prior to the commencement of commercial
production or use.
7 Research costs are expensed to profit or loss as incurred.
8 If all of the following six criteria are met, development costs must be capitalised:
The completion of the intangible asset so that it will be available for use or sale is
technically feasible.
There is an intention to complete the intangible asset and use or sell it.
The intangible asset can be used or sold.
The intangible asset will generate probable future economic benefits. Among other
things, the entity should demonstrate the existence of a market for the output of the
intangible asset itself or, if it is to be used internally, the usefulness of the intangible
asset.
Adequate technical, financial and other resources to complete the development and
to use or sell the intangible asset are available.
The expenditure attributable to the intangible asset