FRS 138 INTANGIBLE

ASSETS

GROUP MEMBERS:MUHAMMAD HAFIZAN

(207745)NORZAIDI

(207828)LOH AIK CHUN

(214388)VENOTH

(214514)SAIFUL BASRI

(215371)

WHAT IS INTANGIBLE

ASSETS? identifiable without physical substance one of the non-monetary assets important for analytical purposes because of its potential materiality on the Statement of Financial Position of firm

Examples:

patents, customer list, artistic, copyrights, licensing, trademarks, construction permit, brands, franchise agreements, and goodwill

INTERNALLY GENERATES

GOODWILL AND INTANGIBLE ASSETS

Goodwill : exist when the companies make the

business combination determined by difference between the fair value and net assets of the

entity measured at cost

INTERNALLY GENERATES

GOODWILL AND INTANGIBLE ASSETS

Other Intangible Assets : Research phase - we will totally send the cost into Statement of Comprehensive Income under expenses Development phase - available to use, we will recognized this cost while if there are no market, it will be

the expenses

MEASUREMENT BASIS

Cost Model: Assets recorded at the initial cost of acquisition less any accumulated amortization and any accumulated impairment losses.

Revaluation Model: Assets are carried at fair value at date of the revaluation less any subsequent accumulated amortization and any subsequent accumulated impairment losses

AMORTIZATION OF INTANGIBLE ASSETS

Finite: Amortized through it useful life that was set up by the company for example for 5 or 10 years Determined after deducting its residual value

Indefinite: No annual amortization charge Shown for each period in Statement of Financial Position

RETIREMENT AND DISPOSALS

Derecognized on disposal or when no future economic benefits Gain or loss arising from derecognition shall be difference between the net disposal proceeds, and the carrying amount of the asset Intangible assets with a finite useful life does not cease when the asset becomes temporarily idle or is retired from active use

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