(IFRS) for Small and Medium-sized Entities (SMEs)
(IFRS) for Small and Medium-sized Entities (SMEs)
(IFRS) for Small and Medium-sized Entities (SMEs)
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<strong>IFRS</strong> FOR SMES – JULY 2009Section 18Intangible Assets other than GoodwillScope of this section18.1 This section applies to accounting <strong>for</strong> all intangible assets other than goodwill(see Section 19 Business Combinations <strong>and</strong> Goodwill) <strong>and</strong> intangible assets held by anentity <strong>for</strong> sale in the ordinary course of business (see Section 13 Inventories <strong>and</strong>Section 23 Revenue).18.2 An intangible asset is an identifiable non-monetary asset without physicalsubstance. Such an asset is identifiable when:(a)(b)it is separable, ie capable of being separated or divided from the entity <strong>and</strong>sold, transferred, licensed, rented or exchanged, either individually ortogether with a related contract, asset or liability, orit arises from contractual or other legal rights, regardless of whether thoserights are transferable or separable from the entity or from other rights<strong>and</strong> obligations.18.3 Intangible assets do not include:(a)(b)financial assets, ormineral rights <strong>and</strong> mineral reserves, such as oil, natural gas <strong>and</strong> similarnon-regenerative resources.RecognitionGeneral principle <strong>for</strong> recognising intangible assets18.4 An entity shall apply the recognition criteria in paragraph 2.27 in determiningwhether to recognise an intangible asset. There<strong>for</strong>e, the entity shall recognise anintangible asset as an asset if, <strong>and</strong> only if:(a)(b)(c)it is probable that the expected future economic benefits that areattributable to the asset will flow to the entity;the cost or value of the asset can be measured reliably; <strong>and</strong>the asset does not result from expenditure incurred internally on anintangible item.18.5 An entity shall assess the probability of expected future economic benefits usingreasonable <strong>and</strong> supportable assumptions that represent management’s bestestimate of the economic conditions that will exist over the useful life of the asset.18.6 An entity uses judgement to assess the degree of certainty attached to the flow offuture economic benefits that are attributable to the use of the asset on the basisof the evidence available at the time of initial recognition, giving greater weightto external evidence.98 © IASCF
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