Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 38
- This topic has 3 replies, 2 voices, and was last updated 5 years ago by aarina.
- AuthorPosts
- December 25, 2018 at 12:14 pm #492686
Hi chris,
Im referring to two books at the moment. One is f7 note from 2013 and the other is 2018 SBR kaplan textbook. There was a question on the later book on internally generated brand which has not been recognised in consol f/s with FV of $5 and remaining UL of 5 yrs
I wanted to know what exactly is the correct and updated treatment for the said item.
..December 25, 2018 at 12:15 pm #492687Because I refer to my note, it says that internally generated brands shall not be recognised as intangible assets. Meanwhile the SBR textbook answer says that brand is an identifiable asset and such should be consolidated and reduces the current calculated goodwill.
.December 26, 2018 at 10:04 pm #495776Hi,
You’ve got to differentiate between IAS 38 and IFRS 3. IAS 38 does not allow internally generated intangibles to be capitalised in the individual company accounts. If that company is acquired then the internally generated intangible is capitalised in the group accounts if its fair value can be measured.
Thanks
December 26, 2018 at 11:43 pm #495785oh okay i understand now thanks a lot!!
- AuthorPosts
- The topic ‘IAS 38’ is closed to new replies.