Initial identification - intangible asset, Auditing

Initial Identification - Intangible Asset

Subsequent to initial identification, an intangible asset is carried at:

a) Cost, less any accumulated amortization and any accumulated harmful losses;

b) Revalued amount, any accumulated impairment losses and less any subsequent accumulated amortization. The revalued amount is fair value on the date of revaluation and is determined through reference to an active market.

An intangible asset can merely be carried at revalued amount whether there is an active market for the asset. Other revaluation increase is directly credited to equity as revaluation surplus, it reverses a revaluation unless decrease of the similar asset previously identified in profit or loss. Any revaluation decrease is identified in loss and unless. Conversely, the decrease is debited straightly to the revaluation surplus in equity to the extent of other credit balance in the revaluation surplus in respect of such asset.

An entity assesses where the needful life of an intangible asset is indefinite or finite; the needful life is indefinite whether there is no foreseeable boundary to the duration over that the asset is expected to produce net cash flows. The depreciable amount of an intangible asset along with an infinite life is amortized on a systematic basis over its needful life.

An intangible asset along with an indefinite needful life is not amortized, since is tested for impairment at least annually. Impairment of intangible assets is identified in accordance along with IAS 36 Impairment of Assets. The loss or gain on derecognizing of an intangible asset is differentiating between the net disposal proceeds, whether any, and the carrying amount of the item. The loss or gain is recognized in loss or profit.

Posted Date: 1/25/2013 2:19:09 AM | Location : United States







Related Discussions:- Initial identification - intangible asset, Assignment Help, Ask Question on Initial identification - intangible asset, Get Answer, Expert's Help, Initial identification - intangible asset Discussions

Write discussion on Initial identification - intangible asset
Your posts are moderated
Related Questions
AUDIT RISK As we have seen many parties rely on the audit opinion to make decisions, and therefore it is now a well established fact that if the auditor gives an audit opinion


Providers of Funds A further point to note is that modern companies can be very large with multinational activities. Preparing accounts for such a group becomes a very complex

Records kept by AUDITOR of procedures applied, tests performed, the information obtained and pertinent conclusions reached in the course of the AUDIT. (2) Any records developed by

Q. Which of the following statements is not considered a disadvantage of the corporate form of organization? a. Additional taxes b. Government regulations c. Limited liability of s

techniques of vouching

Audit Approach - Audit of Accounting Estimates The accounting and auditing matters are mainly concerned along with recognizing the point in time at that the initial disclosure

Advocates - Specialized audit Situation The statutory provisions regulating the handling of client's monies are covered in the advocate's act. Reason of the rules:

how do internal controls affect or improve the goals of a bussiness firm

This charter defines the mission, independence and objectivity, scope and responsibilities, authority, accountability and standards of the Internal Audit function. A charter i