## What is current intangible assets?

Current assets are any assets that can be converted into cash within a period of one year. Intangible assets such as trademarks, copyrights, intellectual property, and goodwill are not able to be converted easily into cash within a year, even if they still provide a company with economic value.

When can intangible assets be Recognised?

IAS 38 states that an intangible asset is to be recognised if, and only if, the following criteria are met: it is probable that future economic benefits from the asset will flow to the entity. the cost of the asset can be reliably measured.

### What is intangible assets and state its types?

An intangible asset is a useful resource without any physical presence. Patents, copyrights, trademarks, and goodwill, etc. are intangible assets. Such assets produce economic benefits but you can’t touch them like other physical assets like Property Plants and Equipment (PPE).

How do you calculate intangible assets?

The common way to determine the overall total value of a company’s intangible assets is to subtract the company’s book value [assets minus liabilities] from its market value. The difference is the value of the intangible assets. However, it’s also possible to value each intangible asset on its own.

#### What are the two conditions that must be present for the recognition of an intangible asset?

Recognition and measurement An intangible asset shall be recognised if, and only if: (a) it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity; and (b) the cost of the asset can be measured reliably.

What is an intangible asset as per AS 27?

Intangible asset is an non-physical non-monetary asset which is held for use in the production or supply of goods and services, or for rentals to others, etc.

## How are intangible assets recognised and amortised?

Intangible assets meeting the relevant recognition criteria are initially measured at cost, subsequently measured at cost or using the revaluation model, and amortised on a systematic basis over their useful lives (unless the asset has an indefinite useful life, in which case it is not amortised).

What is the criteria for recognition of an intangible asset?

Recognition. Recognition criteria. IAS 38 requires an entity to recognise an intangible asset, whether purchased or self-created (at cost) if, and only if: [IAS 38.21] it is probable that the future economic benefits that are attributable to the asset will flow to the entity; and; the cost of the asset can be measured reliably.

### What is the revalued model of intangible assets?

Revaluation model. Intangible assets may be carried at a revalued amount (based on fair value) less any subsequent amortisation and impairment losses only if fair value can be determined by reference to an active market. [IAS 38.75] Such active markets are expected to be uncommon for intangible assets.

When to recognise an intangible asset under IAS 38?

IAS 38 requires an entity to recognise an intangible asset, whether purchased or self-created (at cost) if, and only if: [IAS 38.21] it is probable that the future economic benefits that are attributable to the asset will flow to the entity; and the cost of the asset can be measured reliably.