Page 4 of 4 FirstFirst 1234
Results 31 to 38 of 38

Thread: 25 - Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26) - Intangible Assets

  1. #31
    IND-AS
    Guest

    Thumbs up Review of useful life assessment of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26) - Intangible Assets

    Review of useful life assessment of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26)

    Intangible Assets


    Review of useful life assessment

    109. The useful life of an intangible asset that is not being amortised shall be reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset.If they do not, the change in the useful life assessment from indefinite to finite shall be accounted for as a change in an accounting estimate in accordance with Ind AS 8.

    110. In accordance with Ind AS 36, reassessing the useful life of an intangible asset as finite rather than indefinite is an indicator that the asset may be impaired. As a result, the entity tests the asset for impairment by comparing its recoverable amount, determined in accordance with Ind AS 36, with its carrying amount, and recognising any excess of the carrying amount over the recoverable amount as an impairment loss.


  2. #32
    IND-AS
    Guest

    Thumbs up Recoverability of the carrying amount—impairment losses of Indian Accounting Standard (Ind AS) 38 -Earlier Accounting standard -(26)-Intangible Assets

    Recoverability of the carrying amount—impairment losses of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26)

    Intangible Assets


    Recoverability of the carrying amount—impairment losses


    111. To determine whether an intangible asset is impaired, an entity applies Ind AS 36. That Standard explains when and how an entity reviews the carrying amount of its assets, how it determines the recoverable amount of an asset and when it recognises or reverses an impairment loss.


  3. #33
    IND-AS
    Guest

    Thumbs up Retirements and disposals of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26) - Intangible Assets

    Retirements and disposals of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26)

    Intangible Assets


    Retirements and disposals


    112. An intangible asset shall be derecognised:

    (a) on disposal; or
    (b) when no future economic benefits are expected from its use or disposal.

    113. The gain or loss arising from the derecognition of an intangible asset shall be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the asset. It shall be recognised in profit or loss when the asset is derecognised (unless Ind AS 17 requires otherwise on a sale and leaseback). Gains shall not be classified as revenue.

    114. The disposal of an intangible asset may occur in a variety of ways (eg by sale, by entering into a finance lease, or by donation) . In determining the date of disposal of such an asset, an entity applies the criteria in Ind AS 18 Revenue for recognising revenue from the sale of goods. Ind AS 17 applies to disposal by a sale and leaseback.

    115. If in accordance with the recognition principle in paragraph 21 an entity recognises in the carrying amount of an asset the cost of a replacement for part of an intangible asset, then it derecognises the carrying amount of the replaced part. If it is not practicable for an entity to determine the carrying amount of the replaced part, it may use the cost of the replacement as an indication of what the cost of the replaced part was at the time it was acquired or internally generated.

    115A. In the case of a reacquired right in a business combination, if t he right is subsequently reissued (sold) to a third party, the related carrying amount, if any, shall be used in determining the gain or loss on reissue.

    116. The consideration receivable on disposal of an intangible asset is recognised initially at its fair value. If payment for the intangible asset is deferred, the consideration received is recognised initially at the cash price equivalent. The difference between the nominal amount of the consideration and the cash price equivalent is recognised as interest re venue in accordance with Ind AS 18 reflecting the effective yield on the receivable.

    117. Amortisation of an intangible asset with a finite useful life does not cease when the intangible asset is no longer used, unless the asset has been fully depreciated or is classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with Ind AS 105.



  4. #34
    IND-AS
    Guest

    Thumbs up Disclosure of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26) - Intangible Assets

    Disclosure of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26)

    Intangible Assets


    Disclosure

    General


    118. An entity shall disclose the following for each class of intangible assets, distinguishing between internally generated intangible assets and other intangible assets:

    (a) whether the useful lives are indefinite or finite and, if finite, the useful lives or the amortisation rates used;
    (b) the amortisation methods used for intangible assets with finite useful lives;
    (c) the gross carrying amount and any accumulated amortisation (aggregated with accumulated impairment losses) at the beginning and end of the period;
    (d) the line item(s) of the statement of profit and loss in which any amortisation of intangible assets is included;
    (e) a reconciliation of the carrying amount at the beginning and end of the period showing:

    (i) additions, indicating separately those from internal development, those acquired separately, and those acquired through business combinations;
    (ii) assets classified as held for sale or included in a disposal group classified as held for sale in accordance with Ind AS 105 and other disposals;
    (iii) increases or decreases during the period resulting from revaluations under paragraphs 75, 85 and 86 and from impairment losses recognised or reversed in other comprehensive income in accordance with Ind AS 36 (if any);
    (iv) impairment losses recognised in profit or loss during the period in accordance with Ind AS 36 (if any);
    (v) impairment losses reversed in profit or loss during the period in accordance with Ind AS 36 (if any);
    (vi) any amortisation recognised during the period;
    (vii) net exchange differences arising on the translation of the financial statements into the presentation currency, and on the translation of a foreign operation into the presentation currency of the entity; and
    (viii) other changes in the carrying amount during the period.

    119. A class of intangible assets is a grouping of assets of a similar nature and use in an entity’s operations. Examples of separate classes may include:

    (a) brand names;
    (b) mastheads and publishing titles;
    (c) computer software;
    (d) licences and franchises;
    (e) copyrights, patents and other industrial property rights, service and operating rights;
    (f) recipes, formulae, models, designs and prototypes; and
    (g) intangible assets under development.

    The classes mentioned above are disaggregated (aggregated) into smaller (larger) classes if this results in more relevant information for the users of the financial statements.

    120. An entity discloses information on impaired intangible assets in accordance with Ind AS 36 in addition to the information required by paragraph 118(e)(iii) –(v).

    121. Ind AS 8 requires an entity to disclose the nature and amount of a change in an accounting estimate that has a material effect in the current period or is expected to have a material effect in subsequent periods. Such disclosure may arise from changes in:
    (a) the assessment of an intangible asset’s useful life;
    (b) the amortisation method; or
    (c) residual values.

    122. An entity shall also disclose:

    (a) for an intangible asset assessed as having an indefinite useful life, the carrying amount of that asset and the reasons supporting the assessment of an indefinite useful life. In giving these reasons, the entity shall describe the factor(s) that played a significant role in determining that the asset has an indefinite useful life.
    (b) a description, the carrying amount and remaining amortisation period of any individual intangible asset that is material to the entity’s financial statements.

    (c) for intangible assets acquired by way of a government grant and initially recognised at fair value (see paragraph 44):

    (i) the fair value initially recognised for these assets;
    (ii) their carrying amount; and
    (iii) whether they are measured after recognition under the cost model or the revaluation model.

    (d) the existence and carrying amounts of intangible assets whose title is restricted and the carrying amounts of intangible assets pledged as security for liabilities.
    (e) the amount of contractual commitments for the acquisition of intangible assets.

    123. When an entity describes the factor(s) that played a significant role in determining that the useful life of an intangible asset is indefinite, the entity considers the list of factors in paragraph 90.

    Intangible assets measured after recognition using the revaluation model

    124. If intangible assets are accounted for at revalued amounts, an entity shall disclose the following:
    (a) by class of intangible assets:
    (i) the effective date of the revaluation;
    (ii) the carrying amount of revalued intangible assets; and
    (iii) the carrying amount that would have been recognised had the revalued class of intangible assets been measured after recognition using the cost model in paragraph 74;

    (b) the amount of the revaluation surplus that relates to intangible assets at the beginning and end of the period, indicating the changes during the period and any restrictions on the distribution of the balance to shareholders; and
    (c) the methods and significant assumptions applied in estimating the assets’ fair values.

    125. It may be necessary to aggregate the classes of revalued asset s into larger classes for disclosure purposes. However, classes are not aggregated if this would result in the combination of a class of intangible assets that includes amounts measured under both the cost and revaluation models.

    Research and development expenditure

    126. An entity shall disclose the aggregate amount of research and development expenditure recognised as an expense during the period.

    127. Research and development expenditure comprises all expenditure that is directly attributable to research or development activities (see paragraphs 66 and 67 for guidance on the type of expenditure to be included for the purpose of the disclosure requirement in paragraph 126).

    Other information


    128. An entity is encouraged, but not required, to disclose the following information:

    (a) a description of any fully amortised intangible asset that is still in use; and
    (b) a brief description of significant intangible assets controlled by the entity but not recognised as assets because they did not meet the recognition criteria in this Standard or because they were acquired or generated before this standard was effective..


  5. #35
    IND-AS
    Guest

    Thumbs up Illustrative examples of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26) - Intangible Assets

    Illustrative examples of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26)

    Intangible Assets


    Ind IAS 38Intangible Assets
    Illustrative examples

    These examples accompany, but are not part of Ind AS 38.

    Assessing the useful lives of intangible a ssets


    The following guidance provides examples on determining the useful life of an intangible asset in accordance with Ind AS 38.

    Each of the following examples describes an acquired intangible asset, the facts and circumstances surrounding the determination of its useful life, and the subsequent accounting based on that determination.

    Example 1 An acquired customer list

    A direct-mail marketing company acquires a customer list and expects that it will be able to derive benefit from the information on the list for at least one year, but no more than three years.

    The customer list would be amortised over management’s best estimate of its useful life, say 18 months. Although the direct -mail marketing company may intend to add customer names and other information to the list in the future, the expected benefits of the acquired customer list relate only to the customers on that list at the date it was acquired. The customer list also would be reviewed for impairment in accordance with Ind AS 36 Impairment of Assets by assessing at the end of each reporting period whether there is any indication that the customer list may be impaired.

    Example 2 An acquired patent that expires in 15 years

    The product protected by the patented technology is expected to be a source of net cash inflows for at least 15 years. The entity has a commitment from a third party to purchase that patent in five years for 60 per cent of the fair value of the patent at the date it was acquired, and the entity intends to sell the patent in five years.

    The patent would be amortised over its five -year useful life to the entity, with a residual value equal to the present value of 60 per cent of the patent’s fair value at the date it was acquired. The patent would also be reviewed for impairment in accordance with Ind

    AS 36 by assessing at the end of each reporting period whether there is any indication that it may be impaired.

    Example 3 An acquired copyright that has a remaining legal life of 50 years


    An analysis of consumer habits and market trends provides evidence that the copyrighted material will generate net cash inflows for only 30 more years.
    The copyright would be amortised over its 30 -year estimated useful life. The copyright also would be reviewed for impairment in accordance with Ind AS 36 by assessing at the end of each reporting period whether there is any indication that it may be impaired.

    Example 4 An acquired broadcasting licence that expires in five years


    The broadcasting licence is renewable every 10 years if the entity provides at least an average level of service to its customers and complies with the relevant legislative requirements. The licence may be renewed indefinitely at little cost and has been renewed twice before the most recent acquisition. The acquiring entity intends to renew the licence indefinitely and evidence supports its ability to do so. Historically, there has been no compelling challenge to the licence renewal. The technology used in broadcasting is not expected to be replaced by another technology at any time in the foreseeable future. Therefore, the licence is expected to contribute to the entity’s net cash inflows indefinitely.

    The broadcasting licence would be treated as having an indefinite useful life because it is expected to contribute to the entity’s net cash inflows indefinitely. Therefore, the licence would not be amortised until its useful life is determined to be finite. The licence would be tested for impairment in accordance with Ind AS 36 annually and whenever there is an indication that it may be impaired.

    Example 5 The broadcasting licence in Example 4

    The licensing authority subsequently decides that it will no longer renew broadcasting licences, but rather will auction the licences. At the time the licensing authority’s decision is made, the entity’s broadcasting licence has three years until it expires. The entity expects that the licence will continue to contribute to net cash inflows until the licence expires.

    Because the broadcasting licence can no longer be renewed, its useful life is no longer indefinite. Thus, the acquired licence would be amortised over its remaining three -year useful life and immediately tested for impairment in accordance with Ind AS 36.

    Example 6 An acquired airline route authority between two European cities that expires in three years

    The route authority may be renewed every five years, and the acquiring entity intends to comply with the applicable rules and regulations surrounding renewal. Route authority renewals are routinely granted at a minimal cost and historically have been renewed when the airline has complied with the applicable rules and regulations. The acquiring entity expects to provide service indefinitely between the two cities from its hub airports and expects that the related supporting infrastructur e (airport gates, slots, and terminal facility leases) will remain in place at those airports for as long as it has the route authority. An analysis of demand and cash flows supports those assumptions.

    Because the facts and circumstances support the acquiring entity’s ability to continue providing air service indefinitely between the two cities, the intangible asset related to the route authority is treated as having an indefinite useful life. Therefore, the route authority would not be amortised until its useful life is determined to be finite. It would be tested for impairment in accordance with Ind AS 36 annually and whenever there is an indication that it may be impaired.

    Example 7 An acquired trademark used to identify and distinguish a leading consume r product that has been a market - share leader for the past eight years

    The trademark has a remaining legal life of five years but is renewable every 10 years at little cost. The acquiring entity intends to renew the trademark continuously and evidence supports its ability to do so. An analysis of (1) product life cycle studies, (2) market, competitive and environmental trends, and (3) brand extension opportunities provides evidence that the trademarked product will generate net cash inflows for the acquiring entity for an indefinite period.

    The trademark would be treated as having an indefinite useful life because it is expected to contribute to net cash inflows indefinitely. Therefore, the trademark would not be amortised until its useful life is determined to be finite. It would be tested for impairment in accordance with Ind AS 36 annually and whenever there is an indication that it may be impaired.

    Example 8 A trademark acquired 10 years ago that distinguishes a leading consumer product


    The trademark was regarded as having an indefinite useful life when it was acquired because the trademarked product was expected to generate net cash inflows indefinitely. However, unexpected competition has recently entered the market and will reduce future sales of the product. Management estimates that net cash inflows generated by the product will be 20 per cent less for the foreseeable future. However, management expects that the product will continue to generate net cash inflows indefinitely at those reduced amounts.

    As a result of the projected decrease in future net cash inflows, the entity determines that the estimated recoverable amount of the trademark is less than its carrying amount, and an impairment loss is recognised. Because it is still regarded as having an indefinite useful life, the trademark would continue not to be amortised but would be tested for impairment in accordance with Ind AS 36 annually and whenever there is an indication that it may be impaired.

    Example 9 A trademark for a line of products that was acquired several years ago in a business combination

    At the time of the business combination the acquiree had been producing the line of products for 35 years with many new models developed under the trademark. At the acquisition date the acquirer expected to continue producing the line, and an analysis of various economic factors indicated there was no limit to the period the trademark would contribute to net cash inflows. Consequently, the trademark was not amortised by the acquirer. However, management has recently decided that production of the product line will be discontinued over the next four years.

    Because the useful life of the acquired trademark is no longer regarded as indefinite, the carrying amount of the trademark would be tested for impairment in accordance with Ind AS 36 and amortised over its remaining four -year useful life.



  6. #36
    IND-AS
    Guest

    Thumbs up Appendix - A of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26) - Intangible Assets

    Appendix - A of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26)

    Intangible Assets


    Appendix - A


    Intangible Assets—Web Site Costs

    (This appendix is an integral part of Ind AS 38)

    Issue

    1. An entity may incur internal expenditure on the development and operation of its own web site for internal or external access. A web site designed for external access may be used for various purposes such as to promote and advertise an entity’s own products and services, provide electronic services, and sell products and services. A web site designed for internal access may be used to store company policies and customer details, and search relevant information.

    2. The stages of a web site’s development can be described as follows:

    (a) Planning – includes undertaking feasibility studies, defining objectives and specifications, evaluating alternatives and selecting preferences.
    (b) Application and Infrastructure Development – includes obtaining a domain name, purchasing and developing hardware and operating software, installing developed applications and stress testing.
    (c) Graphical Design Development – includes designing the appearance of web pages.
    (d) Content Development – includes creating, purchasing, preparing and uploading information, either textual or graphical in nature, on the web site before the completion of the web site’s development. This information may either be stored in separate databases that are integrated into (or accessed from) the web site or coded directly into the web pages.

    3. Once development of a web site has been completed, the Operating stage begins. During this stage, an entity maintains and enhances the applications, infrastructure, graphical design and content of the web site.

    4. When accounting for internal expenditure on the development and operation of an entity’s own web site for internal or external access, the issues are:

    (a) whether the web site is an internally generated intangible asset that is subject to the requirements of Ind AS 38; and
    (b) the appropriate accounting treatment of such expenditure.

    5. This Appendix does not apply to expenditure on purchasing, developing, and operating hardware (eg web servers, staging servers, production servers and Internet connections) of a web site. Such expenditure is accounted for under Ind AS 16. Additionally, when an entity incurs expenditure on an Internet service provider hosting the entity’s web site, the expenditure is recognised as an expense under paragraph 88 of Ind AS 1 and the Framework for the Preparation and Presentation of Financial Statements issued by The Institute of Chartered Accountants of India when the services are received.

    6. Ind AS 38 does not apply to intangible assets held by an entity for sale in the ordinary course of business (see Ind AS 2 and Ind AS 11 ) or leases that fall within the scope of Ind AS 17. Accordingly, this Appendix does not apply to expenditure on the development or operation of a web site (or web site software) for sale to another entity. When a web site is leased under an operating lease, the lessor applies this Appendix. When a web site is leased under a finance lease, the lessee applies this Appendix after initial recognition of the leased asset.

    Accounting Principles

    7. An entity’s own web site that arises from development and is for internal or external access is an internally generated intangible asset that is subject to the requirements of Ind AS 38.

    8. A web site arising from development shall be recognised as an intangible asset if, and only if, in addition to complying with the general requirements described in paragraph 21 of Ind AS 38 for recognition and initial measurement, an entity can satisfy the requirements in paragraph 57 of Ind AS 38. In particular, an entity may be able to satisfy the requirement to demonstrate how its web site will generate probable future economic benefits in accordance with paragraph 57 (d) of Ind AS 38 when, for example, the web site is capable of generating revenues, including direct revenues from enabling orders to b e placed. An entity is not able to demonstrate how a web site developed solely or primarily for promoting and advertising its own products and services will generate probable future economic benefits, and consequently all expenditure on developing such a web site shall be recognised as an expense when incurred.

    9. Any internal expenditure on the development and operation of an entity’s own web site shall be accounted for in accordance with Ind AS 38. The nature of each activity for which expenditure is incurred (eg training employees and maintaining the web site) and the web site’s stage of development or post -development shall be evaluated to determine the appropriate accounting treatment (additional guidance is provided in the examples accompanying this Appendix). For example:

    (a) the Planning stage is similar in nature to the research phase in paragraphs 54-56 of Ind AS 38. Expenditure incurred in this stage shall be recognised as an expense when it is incurred.

    (b) the Application and Infrastructure Development stage, the Graphical Design stage and the Content Development stage, to the extent that content is developed for purposes other than to advertise and promote an entity’s own products and services, are similar in nature to the development phase in paragraphs 57-64 of Ind AS 38. Expenditure incurred in these stages shall be included in the cost of a web site recognised as an intangible asset in accordance with paragraph 8 of this Appendix when the expenditure can be directly attributed and is necessary to creating, producing or preparing the web site for it to be capable of operating in the manner intended by management. For example, expenditure on purchasing or creating content (other than content that advertises and promotes an entity’s own products and services) specifically for a web site, or expenditure to enable use of the content (eg a fee for acquiring a licence to reproduce) on the web site, shall be included in the cost of development when this condition is met. However, in accordance with paragraph 71 of Ind AS 38, expenditure on an intangible item that was initially recognised as an expense in previous financial statements shall not be recognised as part of the cost of an intangible asset at a later date (eg if the costs of a copyright have been fully amortised, and the content is subsequently provided on a web site).

    (c) expenditure incurred in the Content Development stage, to the extent that content is developed to advertise and promote an entity’s own products and services (eg digital photographs of products), shall be recognised as an expense when incurred in accordance with paragraph 69(c) of Ind AS 38. For example, when accounting for expenditure on professional services for taking digital photographs of an entity’s own products and for enhancing their display, expenditure shall be recognised as an expense as the professional services are received during the process, not when the digital photographs are displayed on the web site.

    (d) the Operating stage begins once development of a web site is complete. Expenditure incurred in this stage shall be recognised as an expense when it is incurred unless it meets the recognition criteria in paragraph 18 of Ind AS 38.

    10. A web site that is recognised as an intangible asset under paragraph 8 of this Appendix shall be measured after initial recognition by applying the requirements of paragraphs 72-87 of Ind AS 38. The best estimate of a web site’s useful life should be short.


    Illustrating examples to Appendix A

    This section of Appendix A accompanies, but is not part of, Appendix A. The purpose of this section is to illustrate examples of expenditure that occur during each of the stages described in paragraphs 2 and 3 of Appendix A and illustrate application of Appendix A to assist in clarifying its meaning. It is not intended to be a comprehensive checklist of expenditure that might be incurred.

    Example application of Appendix A

    Stage/nature of expenditure
    Accounting treatment
    Planning
    · undertaking feasibility studies
    · defining hardware and software specifications
    · evaluating alternative products and suppliers
    · selecting preferences
    Recognise as an expense when incurred in accordance with paragraph 54 of Ind AS 38
    Application and infrastructure development

    · purchasing or developing hardware Apply the requirements of Ind AS 16
    · obtaining a domain name
    · developing operating software (eg operating
    system and server software)
    · developing code for the application
    · installing developed applications on the web server
    · stress testing
    Apply the requirements of Ind AS 16



    Recognise as an expense when incurred, unless the expenditure can be directly attributed to preparing the web site to operate in the manner intended by management, and the web site meets the recognition criteria in paragraph 21 of
    Ind AS 38 and paragraph 57 of Ind AS 381
    Graphical design development

    · designing the appearance (eg layout and
    colour) of web pages
    Recognise as an expense when incurred, unless the expenditure can be directly attributed to preparing the web site to operate in the manner
    intended by management, and the web site meets the recognition criteria in paragraph 21 of Ind AS 38 and paragraph 57 of Ind AS 38.1
    Content development

    · creating, purchasing, preparing (eg creating links and identifying tags), and uploading information, either textual or graphical in nature, on the web site before the completion of the web site’s development. Examples of content
    include information about an entity, products or services offered for sale, and topics that
    subscribers access
    Recognise as an expense when incurred in accordance with paragraph 69(c) of Ind AS 38 to the extent that content is developed to advertise and promote an entity’s own products and services (eg digital photographs of products). Otherwise, recognise as an expense when incurred, unless the expenditure can be directly attributed to preparing the web site to operate in the manner intended by management, and the web site meets the recognition criteria in paragraph 21 of Ind AS 38 and paragraph 57 of Ind AS 381
    Operating

    · updating graphics and revising content
    · adding new functions, features and content
    · registering the web site with search engines
    · backing up data
    · reviewing security access
    · analysing usage of the web site
    Assess whether it meets the definition of an intangible asset and the recognition criteria set out in paragraph 18 of Ind AS 38, in which case the expenditure is recognised in the carrying
    amount of the web site asset
    Other

    · selling, administrative and other general
    overhead expenditure unless it can be directly
    attributed to preparing the web site for use to
    operate in the manner intended by management
    · clearly identified inefficiencies and initial
    operating losses incurred before the web site
    achieves planned performance [eg false start
    testing]
    · training employees to operate the web site
    Recognise as an expense when incurred in accordance with paragraphs 65-70 of Ind AS 38

    Note-

    1
    All expenditure on developing a web site solely or primarily for promoting and advertising an
    entity’s own products and services is recognised as an expense when incurred in accordance
    with paragraph 68 of Ind AS 38


  7. #37
    IND-AS
    Guest

    Thumbs up Appendix - B of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26) - Intangible Assets

    Appendix - B of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26)

    Intangible Assets


    Appendix - B

    References to matters contained in other Indian Accounting Standards

    This Appendix is an integral part of Indian Accounting Standard 38.

    This appendix lists the appendices which are part of other Indian Accounting Standards and make reference to Ind AS 38, Intangible Assets

    1. Appendix A, Service Concession Arrangements contained in Ind AS 11 Construction Contracts.
    2. Appendix B, Service Concession Arrangements: Disclosures contained in Ind AS 11 Construction Contracts.
    3. Appendix C, Determining whether an Arrangement contains a Lease contained in Ind AS 17, Leases



  8. #38
    IND-AS
    Guest

    Thumbs up Appendix - 1 of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26) - Intangible Assets

    Appendix - 1 of Indian Accounting Standard (Ind AS) 38 - Earlier Accounting standard - (26)

    Intangible Assets


    Appendix - 1

    Comparison with IAS 38, Intangible Assets and SIC Interpretation 32 Intangible Assets—Web Site Costs


    Note: This appendix is not a part of the Indian Accounting Standard. The purpose of this Appendix is only to bring out the differences, b etween Indian Accounting Standard (Ind AS) 38 and the corresponding International Accounting Standard (IAS) 38, Intangible Assets (amended up to November 2009) issued by the International Accounting Standards Board and SIC Interpretation 32 Intangible Asse ts—Web Site Costs:

    1. With regard to the acquisition of an intangible asset by way of a government grant, IAS 38, Intangible Assets, provides the option to an entity to recognise both asset and grant initially at fair value or at a nominal amount plus any expenditure that is directly attributable to preparing the asset for its intended use. Ind AS 38 allows only fair value for recognising the intangible asset and grant in accordance with Ind AS 20.

    2. The transitional provisions given in IAS 38 have not been given in Ind AS 38, since all transitional provisions related to Ind ASs, wherever considered appropriate, have been included in Ind AS 101, First-time Adoption of Indian Accounting Standards corresponding to IFRS 1, First-time Adoption of International Financial Reporting Standards.

    3. Different terminology is used in this standard, e.g., the term ‘balance sheet’ is used instead of ‘Statement of financial position’ and ‘Statement of profit and loss ’ is used instead of ‘Statement of comprehensive income’.

    4. Paragraph number 38 appears as ‘Deleted ‘in IAS 38. In order to maintain consistency with paragraph numbers of IAS 38, the paragraph number is retained in Ind AS 38.


Tags for this Thread

Bookmarks

Posting Permissions

  • Register / Login to post new threads
  • Register / Login to post replies
  • Register / Login to post attachments
  • You may not edit your posts
  •