Intangible assets

This chapter looks into the accounting methods for intangible assets, an identifiable non-monetary asset without physical substance. It begins with a discussion of the importance of intangible assets and the issues in their accounting and valuation. Then, it explores how intangible assets are accounted for in accordance with International Accounting Standard (IAS) 38 Intangible Assets at the point of recognition. In addition to the definition of intangible assets, the chapter also provides the principles on how to distinguish between those purchased externally, acquired as part of a business combination, and internally generated. The latter part of the chapter delves into the financial reporting and disclosure of intangible assets and how they affect the users of the statements of financial position.