Contract-related intangible asset — Accounting glossary

Contractual or legal rights can satisfy the identifiability criterion even if they are not separable from the entity. Apply IAS 38 and, in a business combination, IFRS 3 to determine recognition and acquisition-date measurement. Subsequent amortisation depends on the asset’s useful life; an indefinite-life asset is not amortised and requires impairment testing under IAS 36.

Worked example

An acquired business holds a transferable franchise agreement. If the applicable recognition requirements are met, the acquirer identifies the qualifying contractual right separately from goodwill.

Common mistake

Assuming all contractual intangible assets have finite lives or that every contract-related asset is automatically recognised regardless of the transaction and applicable criteria.

Where it appears in your exams

Qualification	Exam	Relationship	Period
ACCA	FR	Supporting	September 2026–June 2027
ACCA	SBR	Direct	September 2026–June 2027