AASB 138/ IAS 38 | Intangible Assets

Running head : AASB 138 / IAS 138
AASB 138/ IAS 38
NAME OF THE STUDENT
NAME OF THE UNIVERSITY
AUTHORS NOTE

AASB 138 / IAS 381
Executive Summary
This purpose of this paper underlines the valuation of internally generated intangible
assets and also those intangible assets that has been acquired by the combination of business.
The various accounting techniques that mark the valuation of internally generated intangibles
asset will be revalued and further recognition of those assets will be taken into account and
further proposals are going to be made for the efficiency of the measurement and recognition
of all kinds of internally generated intangible assets.

AASB 138 / IAS 382
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................2
Recognition................................................................................................................................2
Measurement..............................................................................................................................3
Distinguishes Between Internally Generated Intangible Assets and Externally Generated
Intangible Assets....................................................................................................................3
Disclosure...................................................................................................................................5
Companies are reluctant to press for changes in the AASB 138 to Require More
Recognition of the Internally Generated Intangibles.............................................................6
Characteristic of Intangible Assets.............................................................................................6
Intangible Assets Un-recognised................................................................................................7
Conclusions................................................................................................................................7
References..................................................................................................................................9

AASB 138 / IAS 383
Introduction
Over the recent years it has been noted that more focused have started to be put on the
matter, where the calculation or rather the accounting of the intangible assets are involved.
This is due to the fact that it has been recognised more and more of the valuation these
intangible assets provide in the profits of the company. It has the power to create a value of
the entity. It should not be ignored the competitive advantages these resources have on the
company.(AASB 2008)
The Australian Accounting Standards Board (AASB) is the body that are responsible
for setting the standards and act like a regulating body for the regulation of the standards
specified. The requirements which the AASB prescribed are followed by all the companies,
non-profit organisations and also the public sector (AASB 2009). It is the responsibility of
the AASB to develop the standards and the interpretation of the events that will likely to
effect the financial statements of a enterprise. The AASB 138 lay out the description related
to the intangible assets of the organization. It has incorporated IAS 38 and it is issued by the
International Accounting Standard Board (IASB) (Anh, Thị and Tú, 2019).
Recognition
In order to understand the AASB 138 it’s important to understand the intangibles
assets of the company. The intangible assets are those, which cannot be seen physically;
however they possessed huge competitive advantages for the company. There are several
factors that are required to be taken under consideration while evaluating the intangible
assets. The intangible assets are required to be the non-monetary, which means that those
assets should be that those assets cannot be valued in terms of fixed amounts or the amounts
that can be drawn or determined. The assets must not have any kind of physical essence
attached to it, thus it can be referred to as the intangible assets for example patents or trade