International Financial Reporting Standards (IFRS)

IFRS for Small and Medium-sized Entities (SMEs)
Section 18: Intangible Assets other than Goodwill

1. Intangible asset
(1) does not have physical substance

(2) is an identifiable non-monetary asset

2. All expenditures for research and development activities
--> are recognised as an expense

3. Internally generated intangible items
--> are not recognised as an asset

4. Examples of items that cannot be recognised as intangible assets:
(1) internally generated goodwill
(2) internally generated brands, customer lists
(3) advertising expenditures

5. Intangible assets are measured at
--> cost less (A) and (B)
(A) accumulated amortisation
(B) accumulated impairment losses

6. SME 18 assumes that
--> all intangible assets have a finite useful life

7. SME 18 assumes that
--> useful life is 10 years
--> if useful life cannot be reliably estimated

8. Amortisation method
--> should reflect the pattern of resource consumption

9. Straight-line method is used
--> if the pattern cannot be determined

10. SME 18 assumes that residual value is zero.

11. Residual value can be non-zero, if (1) or (2) is the case
--> (1) third party commitment to purchase the asset
--> (2) active market provides information about residual value

12. Apply the rules of SME 27
--> for the impairment of intangible assets

IAS 38: Intangible assets

1. Measurement after recognition
--> choose one of the following models:
--> (1) cost model
--> (2) revaluation model

2. Intangible assets with "finite" useful life
--> amortised

3. Intangible assets with "indefinite" useful life
--> not amortised

Topic 350: Intangibles - Goodwill and Other

1. Measurement after recognition
--> Cost model

2. Carrying amount
= cost
- accumulated amortisation
- accumulated impairment losses

3. "Revaluation" model is not allowed.

4. Intangible assets with "finite" useful life
--> amortised

5. Intangible assets with "indefinite" useful life
--> not amortised