StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The Recognition of Intangible Assets - Assignment Example

Comments (0) Cite this document
Summary
This assignment describes the recognition of intangible assets. This paper outlines the worldview about its permission, recognition of intangible assets, the perspective of business development and economic progress…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.8% of users find it useful
The Recognition of Intangible Assets
Read TextPreview

Extract of sample "The Recognition of Intangible Assets"

Download file to see previous pages The objective of this essay is to find examples of current practice, alternatives, and research in the field of calculating intangible assets by considering the importance and reliability of such accounting standards.
There have not been many changes to the accounting principles that deal with internally created intangible assets for the past seventy or more years. Intangible assets purchased by the company are treated as capital and the cost involved in the internal generation of these treated as an expense incurred by the company. While assessing the intangible assets of major corporates knowledge capital amounts to $211, $170 and $112 for Microsoft, Intel, and GE respectively.
There are several drawbacks when intangible assets are not reported and this reflects in the financial statement of knowledge-based companies where the importance and reliability of intangible assets are not met.
The Financial Accounting Standards Board does not provide any provision to treat internally generated intangible assets as capital though the board has made procedures to measure the technical feasibility of calculating intangibles. This provision is applicable for companies that are retail the goodwill purchased during acquisition (Siegel, P. & Borgia, C. 2000.).
The IAS 38 was developed to evolve a policy to account for intangibles assets that are not accounted for in any other IAS. IAS requires a business to recognize intangibles only when the asset satisfies certain criteria. The standard has also derived procedures to treat the carrying amount of intangibles which requires certain disclosures about the asset.
According to IAS 38, and intangible assets is a recognizable non-monetary asset that has no physical form and it is under the control of a company and the asset has been maintained as an outcome of past performances(self-creation or buying) and when future economic advantages (cash inflows) are anticipated.  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Recognition of Intangible Assets Assignment, n.d.)
The Recognition of Intangible Assets Assignment. Retrieved from https://studentshare.org/macro-microeconomics/1548070-the-recognition-of-intangible-assets-should-it-be-permitted-refer-to-contemporary-practice-and-research-what-is-the-worldview
(The Recognition of Intangible Assets Assignment)
The Recognition of Intangible Assets Assignment. https://studentshare.org/macro-microeconomics/1548070-the-recognition-of-intangible-assets-should-it-be-permitted-refer-to-contemporary-practice-and-research-what-is-the-worldview.
“The Recognition of Intangible Assets Assignment”. https://studentshare.org/macro-microeconomics/1548070-the-recognition-of-intangible-assets-should-it-be-permitted-refer-to-contemporary-practice-and-research-what-is-the-worldview.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Recognition of Intangible Assets

Tangible and Intangible Assets

...? Tangible and Intangible Assets There are two types of assets in business, intangible assets and tangible assets. Tangible and intangible assets also have different methods of calculating their rate of depreciation thus it is absolutely necessary for accountants to differentiate them. A person dealing in accounting needs to carefully understand these two types of assets in order to help him record them properly. Intangible assets cannot be seen or felt that is they are non-physical in nature and they are usually non-monetary. Intangible assets are basically the long term resources of the given firm, usually the legal rights of the firm including patents, trademarks, goodwill and copyrights. Intangible assets cannot be destroyed by fires...
7 Pages(1750 words)Research Paper

Characteristics of Intangible Assets

...Draft Research Proposal On Should All Intangible Assets Be Shown in the Balance Sheet Author: Target Degree: PhD Contents Contents 2 Introduction 3 Statement of the Problem 4 Literature Review 5 Research Design 8 Sampling 9 Data Collection 9 Data Analysis 10 References 10 Introduction The changes which have been taking place since 1978, in global economic as well as financial systems have been unique as well as gradual in nature. There is also a gradual shift towards an economy which is mostly based on the knowledge and service rather than relying on the industrial and manufacturing base alone. Accounting, as a profession, also grew in importance as the complications regarding...
8 Pages(2000 words)Research Proposal

The Valuation of Intangible Assets

...Valuation of Internally Generated intangible assets The topic deals with the key issue that radical changes are required in the company regarding valuation for intangible assets including those of an internally generated nature. An intangible asset could be said to be one without physical existence but which could increase the income- generating capacity of the company. In essence, an intangible asset has the characteristics like ability of being separately recognized, ability to produce future benefits to the company and the use of the asset results in either reduction of costs or increase in revenues to the company. 1. Ability to be separately recognised: Since the asset can be separately quantified, relative commercial transactions...
5 Pages(1250 words)Case Study

Intangible Assets for Financial Reporting

The important characteristic of intangibles is that they lack physical substance. It is very difficult to estimate the value of intangibles and there is a high degree of uncertainty regarding the length of time over which they will provide future benefits.
IAS 38 clarifies that intangibles should not be recorded as other assets. Also, this standard does not apply to intangible held for sale in the normal course of business of the entity. Similarly differed tax assets, leases, assets arising from employee benefits, financial assets, mineral rights, and other exploration and evaluation assets, and most importantly goodwill arising from business combinations do not fall the preview of IAS 38.
The identifiable assets shoul...
7 Pages(1750 words)Assignment

Intangible Assets, IAS 38

...Intangible Assets, IAS 38 Intangible assets are defined by IAS38 as being identifiable, non monetary assets without physical substance. The phrase “without physical substance” means that they are assets that can not be seen, felt, or physically measured. However, an asset means a resource that can be controlled by the entity to generate more revenue. An intangible asset is, therefore, majorly a concept that can be turned into revenue. An intangible asset is thus identifiable only when it is separable in that it can be separated or sold, transferred, rented or exchanged (Badaracco, 2003). Another criterion of identifying these assets is from contractual or other legal rights. Examples of these intangible assets would include patents...
5 Pages(1250 words)Essay

Intangible assets valuation methodologies

...Table of Contents - Cost based approach 2 - Market based approach 3 - Income based approach: The Relief from Royalty Approach 3 - contract 5 - Internally Generated Computer Software 5 Conclusion 5 References 6 Introduction  Intangible assets are recognized when it is probable that economic benefit will flow to the entity in future and the cost of the asset can be measured reliably. The asset is initially recognized according to cost model and later is recognized at fair value according to IFRS 13. IFRS 13 measures the fair value of assets or liabilities; recognition through IFRS 13 is to bring comparability and consistency in financial statements and reporting. IFRS 13 has introduced some methods of valuation of assets through fair value...
6 Pages(1500 words)Assignment

Discussion on intangible assets

...Decision on intangible assets Concerns about intangible assets Intangible assets are resources with over year useful life but haveno definite value and physical substance as compared to tangible assets. The assets are classified into two categories namely limited intangible assets and unlimited intangible assets. Limited intangible assets include patents, copyrights, goodwill, reputation, and intellectual property while unlimited intangible assets include trademarks and business methodologies (Abdallah, 2004). Despite their nature, the assets are of significance to companies as they influence or contribute to exemplary performance in terms of financial growth and market share expansion. The assets have propelled various companies...
1 Pages(250 words)Essay

Arguments for Accounting Recognition of Intangible Assets

...RECOGNITION AND DISCLOSURE OF INTANGIBLE ASSETS Introduction Financial reporting within the current business context is imbued with the expectations of meeting the challenges of the new economy. Many studies have been conducted as to how various stakeholders – investors, managers, creditors, analysts, regulators and, above all, clientele – may relevantly assess the value and performance of their firm. It has long been acknowledged that the traditional financial statements, the principles of which were developed in the mid-20th century, no longer capture the value drivers that dominate the new economy (Upton, 2001). In response thereto, proposals have been considered to establish a new reporting paradigm that would capture, measure...
9 Pages(2250 words)Research Paper

Accounting for Intangible Assets

...: Intangibles having a legal form Competitive intangiblesIntangibles having a legal form: The intangibles that possess a legal form may also be referred to as intellectual property as they possess a legal right that can be defended in the court of law. These may include patents, copyrights, trade secrets and trademarks. Competitive intangibles: These are the intangibles that can not be owned legally and are generated as a result of productivity, efficiency and effectiveness etc. These are those assets due to which an entity gains a competitive advantage over other entities and for which it is known to exist. These intangibles include human capital, knowledge base of the company, structural and leverage activities etc. Recognition...
8 Pages(2000 words)Term Paper

Intangible Assets Management and Evaluation

The present research has identified that identification of an intangible asset is possible if it attains a specific criterion. The criteria used in the recognition of these assets involve a demonstration by the entity that the item meets the outlined definition of an intangible asset and the recognition criteria. Intangible assets that meet the relevant criteria are measurable at cost, subsequently measured at cost or using the revaluation model and amortized on a systematic basis over their useful lives. However, intangible assets with indefinite useful life are not amortized. Examples of assets that may remain classified as intangible items include trademarks, patents, fishing licenses, and computer software and import duties...

13 Pages(3250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic The Recognition of Intangible Assets for FREE!

Contact Us