Therefore, the license received from government will be recognized at a fair value of $ 20 million. IAS 38: Intangible Assets. Objective (para. Retirements and disposals of intangible assets are covered in paragraphs IAS 38.112-117. The IAS 38 underlines certain factors that can be used to determine the life of an intangible asset, such as: 1. An asset is identifiable if… IAS 38 requires, intangible assets which arises as a result of government grant are recognized either at fair value or nominal cost. it can also be the length of the contract that allows for the use of the intangible asset. IAS 38 requires that the fair value of an intangible asset should be measured by reference to an active market, therefore cost model is by far more popular than the revaluation model. 18-67) Recognition of an expense (paras. Fixed assets are long-term assets such as plant, property and equipment. IAS 38 Intangible Assets. 1The objective of this Standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Standard. This Standard requires an entity to recognise an intangible asset if, and only if, specified criteria are met. International Financial Reporting Standards (EU) Print Email. Agile approach Derecognition. IAS 38 International Accounting Standard 38 Intangible Assets Objective 1 The objective of this Standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Standard. Intangible Assets IAS 38 Intangible Assets IAS 38 Definition An intangible asset is an identifiable non-monetary asset without physical substance that the entity has control over identifiable The definition of an intangible asset requires an intangible asset to be identifiable to distinguish it from goodwill. For example, IAS 38 does not apply to the following: 1. intangible assets held by an entity for sale in the ordinary course of business (IAS 2: Inventories); 2. deferred tax assets (IAS 12: Income taxes); 3. 1) Scope (paras. IAS 38 defines Intangible Assets and their Accounting Treatment. When we have an asset that is controlled by the entity, future economic benefits are expected to be derived from the asset, there is lack of physical substance but the asset is identifiable, we speak about intangible assets as defined by the IAS 38 standard. Objective. According to IAS 38, Intangible Assets are Non-Monetary Assets without physical substance that are separable from the entity or arise as a result of some contractual or legal rights. The length that the asset is expected to produce gains for the business. Expected usage. 68-71) Volume A - A guide to IFRS reporting Volume B - Financial Instruments - IFRS 9 and related Standards Volume C - Financial Instruments - IAS 39 and related Standards IFRS disclosures in practice Model financial statements for IFRS reporters EC staff consolidated version as of 24 March 2010 Last EU endorsed/amended on 24.03.2010. IN1 Hong Kong Accounting Standard 38 Intangible Assets (HKAS 38) replaces SSAP 29 Intangible Assets (issued in 2001), and should be applied: (a) on acquisition to the accounting for intangible assets acquired in business combinations for which the agreement date is on or after 1 January 2005. 2-7) Definitions (paras. Overview. 8-17) Recognition and measurement (paras. IAS 38 applies to all intangible assets, except those that are within the scope of another standard. 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