IAS 38 - Intangible Assets
Financial Dictionary — IFRS & IAS Standards
Definition
IAS 38 covers the recognition, measurement, and amortization of intangible assets such as software, patents, and trademarks. An intangible asset must provide future economic benefits and be identifiable.
Detailed Explanation
IAS 38 governs intangible assets (e.g., software, patents, trademarks), including recognition criteria, measurement after recognition, useful life assessment, and amortization/impairment.
Common Uses
- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.
- Used to justify accounting treatments in working papers and financial statement notes.
Practical Example
- Example: When preparing year-end reporting, management applies **IAS 38 - Intangible Assets** to determine the correct IFRS treatment and disclosures.
Why This Term Matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.