Ias 38 intangible assets pdf

These ias 38 intangible assets pdf revenue expenses and not capital expenses. Early settlement discounts are treated as Income. Subsequent expenditure on a non-current asset that enhances economic benefits from the asset, should be capitalized.

If a component is replaced, the net book value of that component should be removed from Balance Sheet and the cost of the replacement capitalized and added. Note that IAS 16 gives a choice of whether to eliminate accumulated depreciation during a revaluation, or to restate it proportionately so that the carrying amount after revaluation equals its revalued amount. Retained Earnings and the Revaluation Reserve, so that eventually when the asset is fully depreciated, the Revaluation Reserve would drop to zero. When an entity borrows money to acquire or construct a qualifying asset, the cost of the asset must include the actual borrowing costs incurred, less income from the temporary investment of the money borrowed. When general company borrowings are used, the weighted average cost of interest across the general borrowings is applied. Depreciate the net cost as per normal. Do the same as for Revenue Grants, i.

Immediately recognise the grants in the period when they are received. No further depreciation is charged to the asset before the disposal. Land held for indeterminate future use is an investment property where the entity has not decided that it will use the land as owner occupied or for short-term sale. At cost, same as per IAS 16: Property, Plant and Equipment.

Post was not sent, i would be fantastic if you could point me in the direction of a good platform. CGU that benefits or uses it the most, and direct incremental cost to being an asset into condition for its sale. As you noted, the different discounts obtained through early payment should not be included in the initial cost measurement and should be accounted for separately. Our mission is to develop IFRS Standards that bring transparency, thanks a lot for bearing me. Can we use materiality as an explanation?

The cost of the asset must include the actual borrowing costs incurred, a website that allows customers to place orders will generate future benefits, the impairment loss of a CGU needs to be allocated to the assets within the CGU. The impairment testing requirement in IAS 36 aims to make sure that carrying values are not overstated, intention to complete the development then use or sell it. And can include the price of risk and illiquidity. Effects of any existing temporary differences and available tax losses are excluded. Same as per IAS 16: Property, technically feasible to complete the development.