Accounting treatment prescribed by ias 38, Auditing

Accounting Treatment Prescribed by IAS 38

IAS 38 prescribes the accounting treatment about to intangible assets, except:

a) Intangible assets which are under the scope of another Standard. Assume an example; IAS 2 Inventories applies in the ordinary course of business to intangible assets held for sale;

b) Mineral expenditure and rights on exploration for, or extraction and development of non-regenerative resources.

An intangible asset is initially known as at cost whether all of the following criteria are met:

a) The asset meets the definition of an intangible asset i.e. it is identifiable and controlled by the entity;

b) It is probable which future economic advantage such are attributable to the asset will flow to the entity;

c) The cost of the asset can be measured consistently.

Internally generated mastheads, brands, publishing titles, goodwill, customer lists and same items are not found as assets. Expenditure on research is recognized as an expense. There is no identification of an intangible asset arising from research. An intangible asset arising from growth is recognized only whether particular criteria are met.

Whether an intangible item does not meet the criteria for recognition as an asset, the expenditure is found as an expense whenever incurred. Expenditure such was initially identified as an expense is not involved in the cost of an intangible asset at a later date.

Posted Date: 1/25/2013 2:18:12 AM | Location : United States







Related Discussions:- Accounting treatment prescribed by ias 38, Assignment Help, Ask Question on Accounting treatment prescribed by ias 38, Get Answer, Expert's Help, Accounting treatment prescribed by ias 38 Discussions

Write discussion on Accounting treatment prescribed by ias 38
Your posts are moderated
Related Questions
what is the role of a joint auditor

Capital allowances vs. Depreciation Whether the client can prove such they will keep the existing levels of investment in original terms, then there may be justification to ac

what is statutory audit and private audit

Ask You are the senior auditor assigned to the team performing an audit for Restorative Pharmaceutical Corporation (RPC), a 10-year-old publicly held corporation listed on the New



The Need for an Audit If you take an example of a modern large liability company, we can clearly distinguish between the providers of funds and those who control those funds. The

Co-operative Societies and Parastatals Co-operative Societies An audit in this case is carried out as a general audit except you should notice that the auditor is appoi

Fitri, a sole proprietor in pulic practice, plans to establish a separate department that will provide internal audit service to his audit clients.

methods of determining break even point