Intangible Assets

The Walt Disney Company has a wide reach within their industry. Their business segments include: Consumer Products, Media Networks, Studio Entertainment, Parks and Recreation, and Interactive. (Dalavagas, 2016)

As the business environment grows and companies find new ways to expand into their respective - or even new – markets, it is important that reporting standards stay up to date with changes and continue to assist companies in providing their users with useful accounting information. Information is labelled as being useful when it meets the

E12-1 (Classification Issues—Intangibles) Presented below is a list of items that could be included in the intangible assets section of the balance sheet.

The purpose of this research report is to understand of two important concepts from the Conceptual Framework for Financial Reporting----the objective of general purpose financial reporting and qualitative characteristics of useful financial information. In this report, Myer Holdings Ltd is as an example to describe these two concepts. This report includes the analysis on whether the disclosure of PPE from Myer Holdings Ltd meets the requirements of AASB 116, especially the requirements of objective

The reporting of intangible assets is one such area where they are some similarities in using the guidelines of iGAAP or U.S. GAAP but they also have some significant differences between

I need find out the what is intangible assets, the presentation of Financial Statement and the

of neither intangible nor tangible assets due to a lack of information and thus assume a

The intangible asset needs to be identifiable which means that the organization should be able to dispose of the asset without disposing off the whole of the business at the same time.

AASB 138 defines intangible assets as “identifiable non-monetary assets without physical substance”. Such assets include but are not limited to goodwill, trademarks, patents and research and development. AASB 138 Intangible Assets has been implemented to prescribe the accounting treatment for intangible assets that have not been specifically dealt with in any other standard. Therefore, this standard only applies to intangible assets that have not been previously dealt with. Furthermore, it can be established that this standard is an example of normative accounting theories because the standard prescribes what should be done, rather than predicts what people may do. According to AASB 138 Intangible Assets, in order for an asset to be recognised in the financial statements it must meet specific criteria. The required criterion states that the asset must be identifiable, the entity has control of the asset, future economic benefits are probable and the cost of the asset can be measured reliably.

Under Australian Accounting Standards Board (AASB) 138, intangible asset is defined as ‘an identifiable non-monetary asset without physical substance’ (Australian Accounting Standards Board, 2010). In recent years many companies in different countries have used several methods to record intangible assets. However, Tudor and Dragu (2010) firmly believe that different companies from Europe use the same financial reporting method to record intangible assets. In order to

In simple words, the basic difference between tangibles and intangibles is that tangibles relates to those physical assets which can be touched such as machineries whereas intangibles refer to assets that do not have a physical presence. However in the world of accounting standards, the definition of intangibles becomes quite precise as IAS 381 defines an intangible asset as ‘an identifiable non-monetary asset without physical substance’ - where an asset is identifiable if it is capable of being separated or divided from the entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, asset or liability or arises from contractual or other legal rights, regardless of whether those rights are transferrable or separable from the entity or from the rights and obligations. Thus

One of these is with regards to goodwill and intangible assets with identifiable useful lives.

An intangible asset arising from development (or from the development phase of an internal project) shall be recognised if, and only if, an entity can demonstrate all of the following:

The pace at which hardware, software and networks are developing allows considerable growth and value creation. The digitalisation of existing assets and the creation of new kinds of intangible assets are accompanied by an unprecedented diffusion of knowledge and increasing interconnectedness. The rapid technological progress which characterizes the digital economy has also led to emerging trends and new ways of ‘doing

The IAS 38, provides international standards that should be used in accounting for assets and, in particular, intangible assets that are assumed to be non-monetary and with no physical identification (Lev, 2008). The primary objectives of the IAS 38 standards, are to provide clear guidelines on how intangible assets should be treated during accounting processes. Further, IAS 38 provide specifications on how an individual business should reorganize and measure their intangible assets using certain disclosures as started in IAS 38.1. Such recognition process should meet certain minimum criteria as the same standard outlines. Additionally, this standard provide specific rules on the use of particular financial instruments and presentation of such assets (Stark, 2008).Intangible assets include but not limited to the following; expenditure on development, expenditure on mineral extraction, assets arising from insurance contracts, intangible assets held for sale, incomes, Taxes, goodwill and employees benefits. This paper will outline how the requirements of IAS 38 on research and development expenditure are theoretically dubious and practically unnecessary. All such expenditure should be treated as an expense in the Income Statement and its amount disclosed in notes to the accounts.