The cost of a separately acquired intangible asset can usually be measured reliably (IAS 38.26). Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Quiz complete. 1 All capitalised development expenditure must be amortised. deferred tax assets, goodwill). Examples of intangible assets that are not within the scope of IAS 38 are given in paragraphs IAS 38.2-3 (e.g. An intangible asset with a finite useful life is tested for impairment annually. According to IAS 38 - 'Intangible assets', what is the total cost that can be capitalised as an intangible fixed asset in respect of the new process? The UK government follows IAS 38 as adapted for the public sector. In your discussion, you are required to discuss IAS 38. Accordingly, Question 18. IAS 38 Intangible assets gives guidance on the accounting treatment for intangible assets that are not dealt with specifically in another standard. Find out more about the benefits of membership and joining details. (a) Expenditure during the research phase of a project may sometimes be capitalised as an intangible asset (b) Expenditure during the development phase of a project may sometimes be … Data sets are an intangible asset and would therefore be covered by IAS 38 Intangible Assets. In accordance with IAS 38 Intangible Assets, which of the following statements regarding the accounting treatment of an intangible asset is correct? Become a Financial Reporting Faculty member. If an asset incorporates both intangible and tangible elements, it shall be treated under __________. IAS 38 Intangible Assets prohibits the recognition of internally generated goodwill, thus any reversal of impairment is not recognised. The cost of a separately acquired intangible asset can usually be measured reliably (IAS 38.26). 2011 IFRS: IAS 38 Intangible Assets. Define an intangible asset. Required: We’d love to have you as a member; simply click here to find out more. To find out more, see our Cookies Policy An intangible asset with a finite useful life is tested for impairment annually. In your discussion, you are required to discuss IAS 38. Impairment of Intangible Assets All principles (IAS 36) apply to impairments of long-lived assets also apply to intangible assets. Effective 31 March 2004. IAS 38 Intangible asset 1 / 4 Question 4b - December 2018 You are the financial controller of Omega, a listed entity which prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS® Standards). Recognition of intangible assets. Download all DipIFR course notes, track your progress, option to buy premium content and subscribe to eNewsletters and recaps. IAS 38 – Intangible Assets Timeline and summary from Deloitte IAS Plus, with information on related interpretations and amendments under consideration. Recognition of intangible assets. The standard also prescribes the subsequent accounting treatment of intangible assets that satisfy the recognition criteria and are recognised in the statement of financial position. Currently studying for my AAT Level 4 Financial Statements exam, in a practice paper I have come across this question; "The directors of Wentworth plc are reviewing their assets under IAS 38, Intangible Assets. •You will have multiple attempts at the quiz. (6 marks). If you’re studying IAS 38 Intangible Assets, why not test your knowledge with our multiple choice quiz? And, IAS 38 expands this definition for intangible assets by specifying that on top of basic definition, an intangible asset is an identifiable non-monetary asset without physical substance. Intangible assets Topic summary provided by PwC, giving latest developments and overview, a summary of … Some of them disagreed with removing the context about the analysis of IAS 38 vs. IFRS 16 because it is important for readers to understand how IFRS 16 and IAS 38 interact with each other. Some of them disagreed with removing the context about the analysis of IAS 38 vs. IFRS 16 because it is important for readers to understand how IFRS 16 and IAS 38 interact with each other. Articles, Clarence Street, Dun Laoghaire, Co. Dublin, Ireland The financial statements for the year ended 30 September 2018 are due to be published shortly. Prepare brief notes for the directors of Wentworth plc to answer the following points: (a) What is the definition of an intangible asset?" Example 2: Bad and doubtful debts. It specifies 2 recognition criteria: It is a resource controlled by the entity; and ; Future economic benefits are expected from the asset. Recognition of expense 4. Which of the following is an objective of IAS 38? Phone: +353 (0)1 4433 400 Provide answers to the issues raised by the managing director. Your participation in the survey is optional and you may refuse to answer any specific question or exit the entire survey at any time. IAS 38 Intangible Assets sets out the recognition criteria, measurement bases and disclosure requirements for intangible assets not dealt with specifically in another standard. Internally generated brands are often cited as the big example here, prohibiting entities from recognising items, due to their subjective and fluctuating nature. Road Map on IAS 38 1. Intangible assets meeting the relevant recognition criteria are initially measured at cost, subsequently measured at cost or using the revaluation model, and … Revised March 2004. Separate acquisition of intangible assets. IAS 38 prescribes accounting treatment for all intangible assets that are not specifically covered elsewhere in IFRS. An intangible asset is an identifiable non-monetary asset without physical substance. IAS 38 Intangible Assets 2017 - 05 2 An asset is identifiable if it is either: (a) separable, i.e. Standard IAS 38 Intangible assets gives answers to these questions and provides guidance on intangibles assets’ issues. It requires an entity to recognise an intangible asset if, and only if, specified criteria are met. 2011 IFRS: IAS 38 Intangible Assets. Under IAS 38.21, it puts down recognition criteria for intangible assets – An entity is required to recognise an intangible asset, whether purchased or self-created (at cost) if, and only if: It is probable that the future economic benefits that are attributable to the asset will flow to the entity; and (8 marks) Required: Provide answers to the three queries raised by the chief executive officer. Thank for trying this quiz. For example, computer software can be pre-installed on a computer or can be written on external drive and available for installation on any device. And, IAS 38 expands this definition for intangible assets by specifying that on top of basic definition, an intangible asset is an identifiable non-monetary asset without physical substance. Hence $5 million needs to be charged to profit or loss to undo the reversal. – accounting for the different types of intangible asset acquired in a business combination; – the choice of accounting policy of cost or revaluation models, allowed under IAS 38 Intangible Assets for intangible assets; – the capitalisation of development expenditure. Intangible assets meeting the relevant recognition criteria are initially measured at cost, subsequently measured at cost or using the revaluation model, and … According to IAS 38 - 'Intangible assets', which of the following statement (s) is (are) true? The objective of IAS 38 is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Standard. IAS 38 deals with many types of intangible assets including training costs, costs for advertising, start-ups, R&D and many more. Click here to take the IAS 38 Quiz. 1 All capitalised development expenditure must be amortised. 2 million in the financial statements for the year ended 31 March 2014. To prescribe the accounting treatment for intangible assets that are dealt with specifically in another Standard To specify how to measure … Scope Thank you for your time. Total impairment is still $3 million. Separate acquisition of intangible assets. (7 marks) Quiz: IAS 38 Intangible assets (Basic) The quiz tests your basic understanding of accounting for Intangible assets (International Accounting Standard 38) Start Quiz IAS 38 ... » Question 03: Multiple IFRSs Post navigation. Bookmark File PDF Ias 38 Question Bank And Solution IAS 38 Intangible Assets Quiz Practice with IAS Civil Services exam Question bank and MCQ’s for pre and mains prepared by subject experts. The standard also specifies how to measure the carrying amount of intangible assets and requires specified disclosures about intangible assets. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. Accounted in accordance with IAS 38 is to prescribe the accounting treatment of an intangible upon! Review TESST question 1 of 4 which of the survey will only accessible... More than one correct answer question ias 38 intangible assets questions and answers physical substance progress, option to buy premium content and subscribe to and! 38 intangible assets prohibits the recognition of internally generated goodwill, thus any reversal impairment! 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