(PDF) Quick Reference on Ind AS 38, Intangible Assets

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Ind AS 38: Intangible Assets

The objective of this Standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Standard. This Standard requires an entity to recognise an intangible asset if, and only if, specified criteria are met. The Standard also specifies how to measure the carrying amount of intangible assets and requires specified disclosures about intangible assets.

Intangible assets meeting the relevant recognition criteria are initially measured at cost, subsequently measured at cost or using the revaluation model, and amortised on a systematic basis over their useful lives (unless the asset has an indefinite useful life, in which case it is not amortised).

An intangible asset is an identifiable (either being separable or arising from contractual or other legal rights), non-monetary asset without physical substance.

Intangible assets can be acquired:

  • by separate purchase as part of a business combination;
  • by a government grant;
  • by exchange of assets; and
  • by self-creation (internal generation).

An intangible asset shall be recognised only if:

(a) it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity; and

(b) the cost of the asset can be measured reliably.

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