1.
Intangible
assets are non current assets is non-monetary
asset without no Physical Substances.
It means which cannot be touched.
2.
Intangible
assets are Capitalized in the accounts and will be Amortized.
3.
Amortisation is the systematic allocation of the depreciable amount of an intangible asset over its useful life.
4. Amortization
calculation :
Cost- Residual value
Estimated
Useful Life
The amortisation will begin when the asset is
available for use
5.
Expenditure
on research much always be written off in the period in which it incurred.
6.
Research
and Development Debit balance is Expense
and Asset
7.
Research
Cost should be recognised as an
expense in the period in which they are incurred
8. Development Expenditure must be recognised as
an intangible Asset.
9.
PIRATE- Probable future
economic benefit, Intention to
complete, Resource to complete, Ability to use, Technical feasibility of completing, Expenditure attributable to the intangible asset
10. Disclosure
IAS38 requires both numerical
and narrative disclosure for intangible assts.
Financial Statement should
show a reconciliation of the carrying
amount of intangible assets at the beginning and at the end of the period.
The reconciliation should show the movement on intangible asset including:
Additions, Disposal,
Reductions in Carrying amount,
Amortisation, Any other movements.
11. Financial statement should disclose the
accounting policies for an intangible assets that have been adopted.
12. Disclosure is required:
Method of amortisation
Useful life of the assets
Gross
carrying amount, the accumulated amortisation and the accumulated impairement losses as at the beginning
and the end of the year.
Easy memorise: Where the effect in
amortisation, Research and Dvelopment
Income Statement (Extract)
Research Expenditure
Development cost (Which didn’t
fullfill the PIRATE)
Amortisation of capitalised development cost.
(to be continued)
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