Accounting for Intangible Assets | Financial Accounting

Running head: FINANCIAL ACCOUNTING
Financial Accounting
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Author’s Note

FINANCIAL ACCOUNTING1
Executive Summary
Accounting for intangible assets has attracted key attention in the recent time because the
companies are facing challenges in correctly account for the internally generated intangible
assets. The adoption of wrong accounting treatment either internationally or unintentionally is
contributing towards the major differences in the accounting numbers in the financial
statements of the companies. AASB 138 Intangible Assets/IAS 38 Intangible Assets (AASB
138/IAS 38) provides the required standards and regulations for the accounting of intangible
assets.

FINANCIAL ACCOUNTING2
Table of Contents
1. Introduction............................................................................................................................3
2. Impacts of AASB 138/IAS 38 for Internally Generated Intangible Assets...........................3
2.1 Change in the Accounting for Internally Generated Intangible Assets............................3
2.2 Improvement in the Accounting for Internally Generated Intangible Assets...................3
3. Dissimilarities between Internal Intangible Assets and Acquired Intangible Assets.............4
3.1 Recognition Criteria.........................................................................................................4
3.2 Measurement Criteria.......................................................................................................5
4. Reasons for the Companies to be Reluctant...........................................................................6
5. Conclusion and Recommendation..........................................................................................6
6. References..............................................................................................................................8