{"id":2953,"date":"2025-11-11T08:57:14","date_gmt":"2025-11-11T08:57:14","guid":{"rendered":"https:\/\/usafe-ca.com\/?p=2953"},"modified":"2025-11-11T08:57:14","modified_gmt":"2025-11-11T08:57:14","slug":"ias-38-intangible-assets","status":"publish","type":"post","link":"https:\/\/usafe-ca.com\/zh\/2025\/11\/11\/ias-38-intangible-assets\/","title":{"rendered":"IAS 38 Intangible Assets"},"content":{"rendered":"

IAS 38 Intangible Assets \u2013 Recognising and Measuring Non-Physical Value<\/strong><\/h3>\n

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1\ufe0f\u20e3 Introduction: Understanding IAS 38 Intangible Assets<\/strong><\/h5>\n

IAS 38 Intangible Assets<\/strong> sets the rules for identifying and measuring assets that have no physical form but create value.
In Singapore\u2019s digital economy, firms depend on software, brands, and intellectual property. As a result, IAS 38 Intangible Assets helps companies show these investments clearly and consistently<\/strong>, strengthening trust among investors and regulators.<\/p>\n

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2\ufe0f\u20e3 Purpose and Scope<\/strong><\/h5>\n

IAS 38 applies to intangible assets that are not covered by other standards such as IAS 12 (Income Taxes) or IFRS 3 (Business Combinations).
An intangible asset is a separable, non-monetary asset without physical substance<\/strong> that brings future benefits.<\/p>\n

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3\ufe0f\u20e3 Recognition Criteria<\/strong><\/h5>\n

A company can recognise an intangible asset only when it:<\/p>\n

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  1. \n

    Can be identified<\/strong> (separable or based on legal rights).<\/p>\n<\/li>\n

  2. \n

    Controls<\/strong> the future economic benefits.<\/p>\n<\/li>\n

  3. \n

    Expects probable future inflows<\/strong>.<\/p>\n<\/li>\n

  4. \n

    Can measure the cost reliably<\/strong>.<\/p>\n<\/li>\n<\/ol>\n

    Therefore, normal spending on staff training, marketing, or goodwill stays as an expense.<\/p>\n

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    4\ufe0f\u20e3 Research vs Development Costs<\/strong><\/h5>\n

    IAS 38 Intangible Assets separates research<\/strong> from development<\/strong>:<\/p>\n

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    • \n

      Research phase:<\/strong> Record as an expense immediately because future benefits are uncertain.<\/p>\n<\/li>\n

    • \n

      Development phase:<\/strong> Capitalise costs only when the project is feasible, the intention to complete is clear, future benefits are probable, and costs are measurable.<\/p>\n<\/li>\n<\/ul>\n

      For example, a Singapore firm that builds its own accounting software capitalises programming and testing costs once success is demonstrated.<\/p>\n

      \n
      5\ufe0f\u20e3 Measurement after Recognition<\/strong><\/h5>\n

      Entities may choose one of two models:<\/p>\n

      (a) Cost Model<\/strong> \u2013 Keep at cost less amortisation and impairment.
      (b) Revaluation Model<\/strong> \u2013 Revalue to fair value from an active market, then deduct amortisation and impairment.<\/p>\n

      Because few intangible assets have active markets, most firms use the cost model.<\/p>\n

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      6\ufe0f\u20e3 Amortisation and Useful Life<\/strong><\/h5>\n

      Assets with a finite useful life<\/strong> (such as software licences) are amortised over their benefit period.
      Assets with an indefinite life<\/strong> (such as strong brands) are tested for impairment every year under IAS 36 Impairment of Assets<\/strong>.
      In addition, companies should review useful lives and methods each year to stay accurate.<\/p>\n

      IAS 36 Impairment of Assets<\/a><\/p><\/blockquote>\n