ACF2100 Lecture Notes - Lecture 4: Intangible Asset, Financial Statement, Identifiability

• School: Monash Caulfield
• Department: Accounting
• Course: ACF2100
• Professor: Michelle (Chenlan) Song

Document Summary

Asset (cid:271)(cid:455) cf: (cid:862) a resour(cid:272)e controlled by the enity as a result of past events from which the future economic benefits are e(cid:454)pe(cid:272)ted to flo(cid:449) to the e(cid:374)it(cid:455). (cid:863) Intangible assets aa b 138: (cid:862)a(cid:374) identified non-monetary asset without physi(cid:272)al su(cid:271)sta(cid:374)(cid:272)e(cid:863) For example: patents, copyrights, trademarks, brand names, contracts, business processess as systems. (cid:862)ide(cid:374)tifia(cid:271)le(cid:863) Identifiability creates barriers to recognition in financial statements. + separability: the capacity of being separated from the entity and sold, transferred, licensed, rented or exchanged. + contractual or ther legal rights: to demonstrate control over the asset. (cid:862)no(cid:374)-(cid:373)o(cid:374)etary(cid:863) Monetary assets: money, or assets to be received in fixed or determinable amounts of money. Future economic benefits associated with intangibles are often not fixed or determinable. (cid:862)(cid:374)o(cid:374)-(cid:373)o(cid:374)etar(cid:455)(cid:863) is the (cid:272)hara(cid:272)teristi(cid:272) that differre(cid:374)tiates i(cid:374)ta(cid:374)gi(cid:271)les a(cid:374)d fi(cid:374)a(cid:374)(cid:272)ial assets. (cid:862)without physi(cid:272)al su(cid:271)ta(cid:374)(cid:272)e(cid:863) O(cid:373)ethi(cid:374)g that is (cid:858)i(cid:374)(cid:272)apa(cid:271)le of (cid:271)ei(cid:374)g tou(cid:272)hed(cid:859). Tangibility is not an essential attribute of an asset under the cf.