Accounting treatment prescribed by ias 38, Auditing

Assignment Help:

Accounting Treatment Prescribed by IAS 38

IAS 38 prescribes the accounting treatment about to intangible assets, except:

a) Intangible assets which are under the scope of another Standard. Assume an example; IAS 2 Inventories applies in the ordinary course of business to intangible assets held for sale;

b) Mineral expenditure and rights on exploration for, or extraction and development of non-regenerative resources.

An intangible asset is initially known as at cost whether all of the following criteria are met:

a) The asset meets the definition of an intangible asset i.e. it is identifiable and controlled by the entity;

b) It is probable which future economic advantage such are attributable to the asset will flow to the entity;

c) The cost of the asset can be measured consistently.

Internally generated mastheads, brands, publishing titles, goodwill, customer lists and same items are not found as assets. Expenditure on research is recognized as an expense. There is no identification of an intangible asset arising from research. An intangible asset arising from growth is recognized only whether particular criteria are met.

Whether an intangible item does not meet the criteria for recognition as an asset, the expenditure is found as an expense whenever incurred. Expenditure such was initially identified as an expense is not involved in the cost of an intangible asset at a later date.


Related Discussions:- Accounting treatment prescribed by ias 38

Internal controls, under what circumstances are internal controls inappropr...

under what circumstances are internal controls inappropriate for auditors to check?

ACC/492, An auditor is conducting an audit of the financial statements of a...

An auditor is conducting an audit of the financial statements of a wholesale cosmetics distributor with an inventory consisting of thousands of individual items. The distributor ke

Quality control and auditing, Research and development Panorama Ltd ma...

Research and development Panorama Ltd manufactures and distributes a wide range of general pharmaceutical products. Selected audited data for the reporting period ended 31 Dec

Difference between internal audit and statutory audit, An internal audit is...

An internal audit is one which is conduct by the internal auditors of the company. It is not mandatory for the company and the company just conducts it to keep a check on the opera

Role of accountant, Role of Accountant The Accountant's Role Every ...

Role of Accountant The Accountant's Role Every year a lawyer who such handles client's money is used to created to the Law Society of US a report through a qualified accoun

Ias 37 provisions and contingent assets, IAS 37 Provisions, Contingent Asse...

IAS 37 Provisions, Contingent Assets and Contingent Liabilities IAS 37 was mattered in order to deal along with the subjective area of provision and to prevent the requiremen

Relevance of audit evidence, Relevance of Audit Evidence The relevance...

Relevance of Audit Evidence The relevance of audit evidence has to be determining in relation to the overall objective of forming a reporting and opinion on the financial stat

Explain about wash sale, Q. Explain about Wash Sale? Wash Sale - A wash...

Q. Explain about Wash Sale? Wash Sale - A wash sale takes place if stock or securities are sold at a LOSS and seller acquires substantially identical stock or SECURITIES 30 day

Capital allowances vs. depreciation, Capital allowances vs. Depreciation ...

Capital allowances vs. Depreciation Whether the client can prove such they will keep the existing levels of investment in original terms, then there may be justification to ac

Insurance companies, Insurance Companies Authoritative documents invol...

Insurance Companies Authoritative documents involved as: The Insurance Act The Companies Act IFRS 4 Insurance Contracts The major legislation governing insu

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd