Page 7 - Ebook Financial Accounting 3

CHAPTER 1.0

INTANGIBLE ASSETS: MFRS 138 & MFRS 17

(EFECTIVE 1.1.2020)

LEARNING OBJECTIVE:

At the end of this chapter, students should be able to:

● Describe the nature of Intangible Assets

● Recognize the difference between tangible and intangible noncurrent assets
● Discuss the criteria for the initial recognition of Intangible Asset

● Determine the initial measurement of Intangible Assets

● Show the presentation of Intangible Assets in Financial Statements

Introduction

MFRS 138 Intangible Assets covers identification, recognition, measurement and presentation
of intangibles. An intangible asset is an asset that is not physical in nature. Goodwill, brand

recognition and intellectual property, such as patents, trademarks, and copyrights, are all
intangible assets. Intangible assets exist in opposition to tangible assets, which include land,

vehicles, equipment, and inventory.

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