1. IAS 38 INTANGIBLE ASSETS (Part one) Definition & Recognition 1/17/2010 1 IAS 38 Intangible Assets Part One

2. Objective Specific criteria for recognition of intangible assets Measure carrying amount of intangible assets Specific disclosures about intangible assets 1/17/2010 2 IAS 38 Intangible Assets Part One

3. Scope Intangible assets except Within the scope of another standard Financial assets IAS 39 Exploration and evaluation assets of mineral resources IFRS 6 Expenditure on the development and extraction of minerals, oil, natural gas and similar non-regenerative resources 1/17/2010 3 IAS 38 Intangible Assets Part One

4. Examples of intangible assets excluded from IAS 38 Intangibles held for sale in the ordinary course of business Inventories IAS 2 Construction contracts IAS 11 Deferred tax assets IAS12 Leases IAS 17 Employee benefits IAS19 Financial assets IAS 39, IAS 27, IAS 28, IAS 31 Goodwill IFRS 3 Insurance contracts IFRS 4 Intangible assets in discontinued operations IFRS 5 Activities or transactions are so specialised that another accounting treatment is appropriate (para 6) 1/17/2010 4 IAS 38 Intangible Assets Part One

5. Software Can be IAS 16 property plant and equipment or intangible asset Elements of tangible (disc) and intangible (software) assets When software is not an integral part of the related hardware, treat as intangible asset. Computer controlled machine Operating system of PC 1/17/2010 5 IAS 38 Intangible Assets Part One

6. Examples of intangibles included in IAS 38 Advertising expenditure Start-up costs Research and development Intangible assets under finance lease Rights under licensing agreements (films, plays, manuscripts, patents, copyrights) 1/17/2010 6 IAS 38 Intangible Assets Part One

7. Definitions 1/17/2010 7 IAS 38 Intangible Assets Part One

8. Definitions 1/17/2010 8 IAS 38 Intangible Assets Part One

9. Definitions 1/17/2010 9 IAS 38 Intangible Assets Part One

10. Definitions 1/17/2010 10 IAS 38 Intangible Assets Part One

11. Definitions 1/17/2010 11 IAS 38 Intangible Assets Part One

12. Definitions 1/17/2010 12 IAS 38 Intangible Assets Part One

13. Intangible assets 1/17/2010 13 IAS 38 Intangible Assets Part One

14. Recognition of intangible asset Must meet definition Identifiable Control over a resource Future economic benefits If it does not meet definition Recognise expenditure as incurred If acquired in a business combination Forms part of goodwill at acquisition date 1/17/2010 14 IAS 38 Intangible Assets Part One

15. Identifiable Intangible Asset Separable From entity Can be sold, transferred, licensed, exchanged, rented Individually or related contract, asset & liability Arises from contractual or legal rights The rights do not have to be separable CONTINUED IN PART 2… 1/17/2010 15 IAS 38 Intangible Assets Part One