The Australian Accounting Standards Board

911 Words Aug 28th, 2014 4 Pages
The Australian Accounting Standards Board made Accounting Standard
AASB 138 Intangible Assets under section 334 of the Corporations Act 2001.
Generally, Assets that do not have a definite existence are called intangible assets. AASB Australian accounting standards board 138 defines an intangible asset as an identifiable non-monetary asset lacking physical substance. It is a claim to future benefits that does not have a financial example. There are three main features of intangible asset as laid by AASB138.They are:
1. Non-monetary: intangible assets are non-monetary assets where assets are regarded as receivable and cash are not intangible assets. Monetary assets are defined as ‘money held and assets to be received in fixed or determinable amounts of money’. The vital reason for the inclusion of non-monetary nature is to exclude all the loans and receivable classified as intangible assets.
2. Identifiable: An intangible asset should be distinctly identifiable (the company can sell it, licence it, etc.) Intangible assets can arise from a purchase (for example, through the purchase of a patent or be generated within the organisation (for example, through expenditure on Research & Development). Something that can be purchased can obviously be identified. If a profit making enterprise grips something there should be some sort of expectation that it will generate cash flows. This criterion requires that an intangible asset is separable from the entity whenever it arises from…
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