Assignment on Accounting Theories IAS 38

Added on -2020-02-24

| 9 pages| 2747 words| 219 views

Trusted by 2+ million users,
1000+ happy students everyday

Showing pages 1 to 3 of 9 pages

ACCOUNTING THEORIES 1
TABLE OF CONTENTSEXECUTIVE SUMMARY.............................................................................................................3INTRODUCTION AND PURPOSE...............................................................................................3TASKS.............................................................................................................................................4Concept of IAS 38.......................................................................................................................4Applicability................................................................................................................................4Exchange of asset........................................................................................................................5Measurement after the recognition..............................................................................................5Difference in between IAS and Italian law..................................................................................5Useful life and the process of amortization.................................................................................6Impairment of losses....................................................................................................................6CONCLUSION................................................................................................................................7RECOMMENDATIONS.................................................................................................................7References........................................................................................................................................82
EXECUTIVE SUMMARYIAS 38 has been introduced with the motive to measure and recognize intangible assets,and it needs disclosure about them. Further, in accordance with the standard, it is necessary forthe enterprise to recognize intangible asset. The main examples of intangible assets are thetrademark, patent, license, computer software, etc. The goodwill that has been developed withinthe business internally is considered within the scope of IAS 38, but it is not considered as theasset as it is not the identifiable resource. Considering the applicability part, IAS 38 applies to allthe intangible assets that organizations hold around the globe. The rule of IAS 38 states that allthe intangible assets generated internally are a part of expense when they are incurred. IAS 38requires different type of organizations to deliver series of disclosures. It is possible for the entities to acquire an intangible asset in exchange for nonmonetaryone. Considering the overall practice of IAS 38 organization must select either cost model or therevaluation model as its accounting policy. There is a wide difference in between IAS 38 and theItalian law. The first basic difference is that IAS 38 deals with the intangible assets and in case ofItalian law long term costs are considered on the basis of different conditions. The entire studycarried out has supported in knowing about IAS 38. Further, it has directly changed theaccounting treatment of intangible assets which every company operating in the market has toundertake. It is recommended to companies to provide proper training to the finance departmentso that they can understand the concept of IAS38 in proper manner so that it may not bemisunderstood. INTRODUCTION AND PURPOSEInternational accounting standard 38 has been developed with the motive to prescribe theaccounting treatment for the intangible assets. Further, in accordance with the standard, it isnecessary for the enterprise to recognize intangible asset[ CITATION Chr15 \l 1033 ]. The rangeof standards present also allows in specifying how to measure the carrying amount of intangibleassets and requires specified disclosure linked with intangible assets. It is mandatory to applythis standard to intangible assets only. The main purpose behind carrying out the present reportcarried is to analyze the impact of adoption of IAS 38 around the world. Further, the keyprinciples associated with IAS 38 have been highlighted in the study along with the areas that areaffected due to this concept. 3

Found this document preview useful?

You are reading a preview
Upload your documents to download
or
Become a Desklib member to get accesss

Premium

$45

Q&A Library Access

Chat support

12

Document Unlocks

4

Answer Unlocks

Students who viewed this