The Financial Accounting and Reporting Exam - Assignment Example

iii) The revaluation model on the other hand requires that the asset is taken at its raised amount which is its fair value at the time of revaluation and then subtracts depreciation and impairment of the asset. For instance, if a revaluation results in a rise in the value of an asset, it should be credited to equity. iv) The identifiability of intangible assets concept requires an intangible asset to be taken as a recognizable non-monetary asset that lacks physical substance and can bring in economic benefits in the future.

For instance, trademarks and copyrights. v) The control of intangible assets requires that the ownership of intangible assets use them to reap economic benefits in the future. For instance, copyrights protect the original from adaptation without permission. Trademarks on the other hand represent brands that are legally protected. vi) Future economic benefits from intangible assets entail all the advantages accrued to a business due to intangible assets. For instance, copyrights prevent the adaptation of original works and compositions to prevent others from benefitting illegally thereby bringing benefits in the future.