Which of the following is an objective of IAS 38?
The primary objective of IAS 38 is to prescribe the accounting treatment for intangible assets that are not dealt with explicitly in another Standard. IAS 38 requires an entity to recognise an asset as intangible if, and only if, specified criteria are met.
Which of the following items qualify as an intangible asset under IAS 38?
The correct option is (d) Legal costs paid to intellectual property lawyers to register a patent.
Which disclosures is encouraged but not required by IAS 38?
An entity is encouraged, but not required, to disclose the following information: (a) a description of any fully amortised intangible asset that is still in use; and (b) a brief description of significant intangible assets controlled by the entity but not recognised as assets because they did not meet the recognition …
What do you mean by good will?
Goodwill is an intangible asset that is associated with the purchase of one company by another. Specifically, goodwill is the portion of the purchase price that is higher than the sum of the net fair value of all of the assets purchased in the acquisition and the liabilities assumed in the process.
What are the two types of goodwill?
There are two types of goodwill, Institutional (Enterprise) or Professional (Personal). Institutional goodwill may be described as the intangible value that would continue to inure to the business without the presence of specific owner.
Why do we amortize goodwill?
A caveat is that under GAAP, goodwill amortization is permissible for private companies. The purpose of this accommodation is to reduce the costliness of annual impairment testing on private companies that lack the internal accounting resources needed to perform the tests.
Is a phone number an intangible asset?
Several courts have concluded that domain names and telephone numbers constitute an intangible property right.