company accounting Intangible Assets参考.ppt

* * * * * * * * * * * * * * * * * * * * * * Chapter 9 Intangible Assets Prepared by Emma Holmes The nature of intangible assets  AASB 138 provides the following definition for intangibles: “An identifiable non-monetary asset without physical substance” Three key characteristics of intangibles: They are non monetary ( ie. it is not a financial asset) They are identifiable They lack physical substance (ie. it is not an item of PPE) The nature of intangible assets: identifiability  For an intangible to be identifiable one of the following two criteria must be met: It is separable from the entity, capable of being transferred eg. Customers lists non-contractual customer relationships It arises from a contractual or some other legal right eg trademarks franchise agreements Figure 9.3 of text lists items that meet the identifiability criteria The nature of intangible assets: lack of physical substance  Non-physical assets have a number of unique characteristics (see pages 399-400 of text) When they should be recognised? Should one wait for a point of discovery? Does an asset exist when the investment is made? Is there an asset at the point employee training occurs? How they should be measured? Where is the market? Can the specific benefits be isolated? Are the property rights over the expected benefits fuzzy? Why are intangibles important? Intangibles have been increasing in importance due to: Intensified business competition The advent of information technologies The above factors have resulted in a fundamental corporate change. Significant increase in: Innovation related intangibles Human Resource related intangibles Organisational intangibles Identifying intangible assets An asset is defined in the Conceptual Framework as a resource controlled by the entity. Control usually stems from legal or other rights and can be difficult to establish. Example: highly trained staff do not qualify as intangibles due to the lack of control the