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intangible asset

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › intangible asset

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarP2-D2.
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  • March 27, 2019 at 3:57 pm #510562
    Avatarsguha
    Participant
    • Topics: 64
    • Replies: 42
    • ☆☆

    Q1. if a co. paid for an online advertising campaign….and the directors believe that sales increased of that publicity for next 3 yrs. Still we will not capitalise it right under IAS 38 as we dont have control over the customers.Am i right?

    Q2. A co. has developed a patented drug whose development cost is 20 million which will be capitalised. A specialist valuer estimated its market value at 30 million.

    Question ask what will be the value of intangible asset in SOFP.

    it will be still 20 million right…cause revaluation at fair value of Intangible asset is only applicable in presence of Active market.

    March 27, 2019 at 9:21 pm #510647
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    Q1. Correct, it is just a cost of improving the business overall

    Q2. Correct, there needs to be an active market and the assets traded in that market need to be identical.

    Good knowledge on intangibles!

    Thanks

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