PPT: Accounting Standards (26) | Advanced Accounting for CA Intermediate PDF Download

 Page 2


CONTENTS:
• DEFINITION
• RECOGNITION AND INITIAL MEASUREMENT OF INTANGIBLE ASSETS
• INITIAL AND SUBSEQUENT EXPENDITURE
• AMORTIZATION PERIOD
• RETIREMENTS AND DISPOSALS
• RELATED EXAMPLES
• SIGNIFICANT DIFFERENCES IN IND AS 38 AND AS 26
Page 3


CONTENTS:
• DEFINITION
• RECOGNITION AND INITIAL MEASUREMENT OF INTANGIBLE ASSETS
• INITIAL AND SUBSEQUENT EXPENDITURE
• AMORTIZATION PERIOD
• RETIREMENTS AND DISPOSALS
• RELATED EXAMPLES
• SIGNIFICANT DIFFERENCES IN IND AS 38 AND AS 26
DEFINITION:
An Intangible Asset is an identifiable asset
with separate identity which is non-
monetary in nature that has no physical 
substance, held for use in production or 
supply of goods or services or for rentals to 
others, etc.
Page 4


CONTENTS:
• DEFINITION
• RECOGNITION AND INITIAL MEASUREMENT OF INTANGIBLE ASSETS
• INITIAL AND SUBSEQUENT EXPENDITURE
• AMORTIZATION PERIOD
• RETIREMENTS AND DISPOSALS
• RELATED EXAMPLES
• SIGNIFICANT DIFFERENCES IN IND AS 38 AND AS 26
DEFINITION:
An Intangible Asset is an identifiable asset
with separate identity which is non-
monetary in nature that has no physical 
substance, held for use in production or 
supply of goods or services or for rentals to 
others, etc.
RECOGNITION AND INITIAL MEASUREMENT OF 
INTANGIBLE ASSETS
RECOGNITION CRITERIA:
• Future economic benefit should be expected to flow 
to the enterprise
• Cost of the asset can be measured reliably.
Page 5


CONTENTS:
• DEFINITION
• RECOGNITION AND INITIAL MEASUREMENT OF INTANGIBLE ASSETS
• INITIAL AND SUBSEQUENT EXPENDITURE
• AMORTIZATION PERIOD
• RETIREMENTS AND DISPOSALS
• RELATED EXAMPLES
• SIGNIFICANT DIFFERENCES IN IND AS 38 AND AS 26
DEFINITION:
An Intangible Asset is an identifiable asset
with separate identity which is non-
monetary in nature that has no physical 
substance, held for use in production or 
supply of goods or services or for rentals to 
others, etc.
RECOGNITION AND INITIAL MEASUREMENT OF 
INTANGIBLE ASSETS
RECOGNITION CRITERIA:
• Future economic benefit should be expected to flow 
to the enterprise
• Cost of the asset can be measured reliably.
INITIAL RECOGNITION
RECOGNITION 
CRITERIA
MEASUREMENT
INTERNALLY
GENERATED
ACQUIRED
Goodwill, Trademark,
Copyright
Other intangible assets
Eg: patents
For cash
Consideration 
other than cash
will not be 
recognized in 
the books of 
accounts
Which the 
entity has 
generated 
on its own
The entity has 
purchased it from 
someone else
Research phase 
expenditure 
Development phase 
Purchase price
+
DAC , Eg: duties & taxes, 
documentation cost 
till the asset is ready for 
generating benefit
Capitalized ie, (+) cost 
of the asset
Shall be 
recorded as 
expenses in 
P&L a/c
Can be capitalized if:
there is certainty about FEB
Cost is reliably measurable
or
It should be expensed
FV of IA acquired 
or
FV of asset given up
Which is more 
clearly evident , 
will be recorded 
in the balance 
sheet