Intangible assets meeting the relevant recognition criteria are initially measured at cost, subsequently measured at cost or using the revaluation model, and amortised. International financial reporting standards ias 39. Ias 38 outlines the accounting requirements for intangible assets, which are nonmonetary assets which are without physical substance and identifiable either being separable or arising from contractual or other legal rights. The accounting standard ias 38 sets out accounting treatment and disclosures to be applied to the recognition and measurement of intangible assets. Revenue from nonexchange transactions taxes and transfers. Ssap 32 consolidated financial statements and accounting for. Ias 38 should be read in the context of its objective and the basis for conclusions, the preface to international financial reporting. March 2017 recognition and initial measurement this communication contains a general overview of the topic and is current as of march 31, 2017. Ssap 19 requires investment properties to be revealed in the accounts each year at open market value ssap19. Ssap whereas in international accounting standards it is treated under ias 38 which is a standard for intangible assets oswald, 2008. September 1998 ias 38, intangible assets 1 july 1999 effective date of ias 38 p. View a list of articles and books in our collection on stock and contracts valuation and ssap 9. Nz ias 38 is based on international accounting standard 38 intangible assets ias 38 2004 initially issued by the international accounting standards committee iasc and subsequently revised by the international accounting standards. Our aim is to illuminate one of the leastunderstood and mostfeared aspects of ifrs.
Statements of standard accounting practice accounting. The first phase of the project focused primarily on. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. International accounting an overview sciencedirect topics. Pour voir ifrs 6 prospection et evaluation de ressources minerales cas 2 ias 16 et ias 36 immobilisations corporelles. The accounting treatment for research and development. According to ias 38, any intangible asset will be identified if he following criteriais met. Intangible assets meeting the relevant recognition criteria are initially measured at cost, subsequently measured at cost or using the revaluation model, and. Nz ias 38 is based on international accounting standard 38 intangible assets ias 38 2004 initially issued by the international accounting standards committee iasc and subsequently revised by the international accounting standards board iasb. Ias 38 requires, intangible assets which arises as a result of government grant are recognized either at fair value or nominal cost. Ifrs is the result of a joint project between the iasb and the fasb to develop common requirements for measuring fair value and for disclosing information about fair value measurements. It is that, in uk accounting standards, there is a separate accounting standard i. Intangible assets ias 38 30 property, plant and equipment ias 16 31 investment property ias 40 32 impairment of assets ias 36 33 lease accounting ias 17, ifrs 16 34 inventories ias 2 35 provisions and contingencies ias 37 36 events after the reporting period and financial commitments ias 10 38.
International accounting standard 38 intangible assets ias 38 is set out in paragraphs 13. Financial reporting of research and development costs and its. Ias 38 addresses intangible assets acquired by way of a government grant. No comparable examples are included in appendix c to ias 37. Where ias 38 criteria satisfied, capitalisation is mandatory. Recognition ias 38 states that an intangible asset is to be recognised if, and only if, the following criteria are met. We show that capitalisation results in current returns incorporating more future earnings information than expensing under uk gaap. The only significant difference between ssap 29 and ias 38 is that. Ias 38 intangible assets adeel september 5, 2016 august 24, 2016 no comments on summary notes. Under ias 38 intangible assets, the accounting treatment for research and development is different. In the ruritanian accounting standard, research expenditure is charged to the statement of comprehensive income and development cost is to be capitalized as a part of. The similarity of the capitalisation criteria under. Ias 38 intangible assets 2017 05 pkf international.
Smart ship application platform project ssap project. The standard that is directly relevant to the discussion here is ias 38 intangible assets3. Accordingly, this interpretation does not apply to expenditure on the development or operation of a web site or web site software for sale to another entity. Sep 27, 2014 ias 38 intangible assets frs 10 ssap goodwill and intangible assets accounting for research and development a wider range of intangible assets is recognised under ifrs, such as software licences regarded as tangible fixed assets under uk standards under frs 10, an asset is identifiable when it is capable of being sold separately. Accounting for research and development fulltext standard. Intangible assets meeting the relevant recognition criteria. New zealand equivalent to international accounting standard. These policies must have regard to the fundamental accounting concepts, including the accruals concept and the prudence concept. Hkas 38 intangible assets ias 38 ssap 29 transitional provisions provisions, contingent liabilities ias 37 ssap 28 no significant changes and contingent assets hkas 37 hkas 36 impairment of assets ias 36 ssap 31 transitional provisions hkas 34 interim financial reporting ias 34 ssap 25 no significant changes ssap 5 retrospective interpretation 10. Frs 102s definition of an intangible asset is now more in line with ifrs and expands on what is defined as an intangible asset in comparison to the old uk gaap. Find articles, books and online resources providing quick links to the standard, summaries, guidance and news of recent developments. Ssap 1 disclosures general and separate accounts individually.
New zealand equivalent to international accounting. Financial reporting of research and development costs and. Accounting standard an overview sciencedirect topics. Further information ssap 31, impairment of assets article published in the hong kong accountant. Ias 36 impairment of assets 2017 07 2 an assets value in use is the present value of the future cash flows expected to be derived from an asset or cash generating unit. The convergence handbook compares ias and uk financial reporting requirements and summarises.
Comparison with international accounting standards the international accounting standard comparable with ssap 31 is ias 36, impairment of assets. Ssap revised january 1989 pdf ssap gives guidance on the accounting policies to be followed in respect of research and development expenditure. Statements of standard accounting practice were issued by the accounting standards board and although many have been superseded by financial reporting standards, some are still in force for accounting periods commencing before 31 december 2014. Construction contracts are covered by section 23 of frs 102. This factsheet will not address the specific requirements of ias. Therefore, ifrs is largely identical to the fair value guidance of us gaap financial accounting standards board, 2011.
Ias 36 impairment of assets 2017 07 pkf international. Current uk gaap optional treatments not allowed by current and proposed ias ssap accounting for research and development. Hkas 38 intangible assets ias 38 ssap 29 transitional provisions provisions, contingent liabilities ias 37 ssap 28 no significant changes and contingent assets. This is regarded by many as the most complex of all. Deferred tax the effect of the implementation of nz ias 12. Comparison with international accounting standards the international accounting standard comparable with ssap 29 is ias 38, intangible assets. There are no significant differences between ssap 31 and ias 36. Deferred tax the effect of the implementation of nz ias. Investment properties ssap 19 requires investment properties to be revealed in the accounts each year at open market value ssap19.
While it introduced the requirement for all the expenditure incurred at the research stage to be expensed as incurred, it also introduced the. All the countries unde r study and the iasb recognize. Ssap 32 consolidated financial statements and accounting. Jointly controlled entities non sic ssap 21 monetary contributions by venturers hkasint hkasint 12 consolidation special purpose entities sic 12 ssap 32 retrospective. Unit financial reporting assignment locus assignment help. Examples 3a, 8a, 12 and in appendix c to hkas 37 are additional hong kong examples. Ias 38 intangible assets 2017 05 2 an asset is identifiable if it is either.
Recognition and measurement are replaced by crossreferences to the treatments under ssap 24 accounting for investments in securities. The ifrs foundations logo and the ifrs for smes logo, the iasb logo, the hexagon device, eifrs, ias, iasb, ifric, ifrs, ifrs for smes, ifrs foundation, international accounting standards, international financial reporting standards, niif and sic are registered trade marks of the ifrs foundation, further details of which are available from the ifrs. Suppose the recognition criterias given by ias 38 and ssap are met then the cost of research i. Ias 38 intangible assets frs 10 ssap goodwill and intangible assets accounting for research and development a wider range of intangible assets is recognised under ifrs, such as software licences regarded as tangible fixed assets under uk standards under frs 10, an asset is identifiable when it is capable of being sold separately. We answer the questions we are asked most often by companies applying ias 39, and illustrate how to achieve hedge accounting for a range of hedging strategies commonly used in practice. Ias 38 intangible assets outlines the accounting requirements for intangible assets, which are nonmonetary assets which are without physical substance and identifiable either being separable or arising from contractual or other legal rights. These carriers were exposed to solvency risk that was not. Pdf toward research and development costs harmonization. Establishes morelikelythannot and reasonably estimated criterion state income tax loss contingencies accounted for under an unmodified, or probable and reasonably estimated criterion tax loss contingencies presumed that the reporting entity will be examined by the relevant. The corresponding standards under uk general accepted accounting principles gaap are the statement of standard accounting practice ssap accounting for research and development and frs 10 goodwill and intangible assets4.
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