Intangibles – Introduction – ACCA Financial Reporting (FR)
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Hello from Uzbekistan!, I would like to thank all the teachers here for their efforts for making it available for every one!
Hello, I have a question regarding recognition criteria, in the video it seems that you used the concept of the previous conceptual framework. Now we have to consider the new concept? Not consider probability and reliability of measurement?
Thanks
Hi!
Despite the fact that Framework was updated, IAS 38 has its’ own recognition criteria set for intangibles, which fully corresponds to lecture.
From IAS 38:
“The recognition of an item as an intangible asset requires an entity to demonstrate that the item meets:
(a) the definition of an intangible asset (see paragraphs 8–17); and
(b) the recognition criteria (see paragraphs 21–23).
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.
Hi, thanks for your response. I was just confused by the conceptual framework new concepts. You are right, we use first the specific standard to determine the accounting treatment and just use the conceptual framework if the treatment is not addressed by the specific standard.
Hey !
I just have 2 questions for intangible related to the control of the assets and intangible goodwill generated internally :
1. If the control imposed over skills of employees is protected by forcible
Legal contracts like football players or scholarships students who comes back after studying and have to work for certain period or pay can we consider this as control evidence and term of payment is the cost? And how this would be re-evaluated over time?
2. If the goodwill generated internally sold to subsidiary can we recognize the purchase price ( assuming no ordinary market) as goodwill cost for the subsidiary financial statements?
Hi sir, thank you about the video.
I have one concern. When you think about “Land”, it usually a tangible asset. However, from what I understand, we mention “land” mean the right to use the “land” in a period of time. Hence it should be clarified as non-tangible assets.
I have never seen the term Non-Tangible. Where did you get that?
You can touch the land and therefore it is tangible. All assets have right to use as we expect economic benefit from them.
There are differences between Vietnamese accounting standard and others. In Vietnam, land is considered government’s property (hope I state this right), so the only thing we trade in Vietnam is the “right to use land”, which is an intangible asset.
The exam is IFRS and therefore land will be considered as a tangible non-current asset (PPE).
Thanks