RSM220H1 Chapter Notes - Chapter 12: Intangible Asset, Book Value, Impaired Asset
Document Summary
Intangible assets: identifiable non-monetary assets that lack physical substance. Identifiable in the sense that it results from contractual or other legal rights or it is separable from the entity. Recognition criteria identical to ppe and measured at cost at acquisition. Must be probably that entity will receive future economic benefits. If there are delayed payment terms, interest portions are recognized as a financing expense rather than part of the asset"s cost. If the intangible is acquired for shares, cost is the asset"s fv; however, if fv of intangible cannot be measured reliably, the shares" fv is used. If the intangible is acquired by giving up non-monetary assets, the cost of the intangible is the fv of what is given up or the fv of the intangible received, whichever one can be more reliably measured. This assumes that the transaction has commercial substance! If the intangible is acquired as a government grant, the asset"s fv establishes its cost on the books.
