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.