Professional Documents
Culture Documents
Intangible Assets
tangible assets
The market capitalization also followed the tangible assets held
by the companies
In early 2000 , the book value of the assets represented less than
15% of the total market value
Therefore what are the key drivers of market value,today?
It is the Intangibles
Intangibles.
Intangibles include its brands,its ability to attract,develop
Human
Resources:
Collective expertise
Innovation & leadership
Entrepreneur & mgt.skills
Intellectual Property
Assets:
Know how
Copyrights
Patents
Products & tools
Internal Assets:
Systems
Technologies
Methodologies
Processes & tools
Specific to enterprise
External Assets:
Market related intangibles
Customer loyalty
Brand value
Objective
The objective of this Statement is to prescribe the
Scope
This Statement should be applied by all enterprises in
accounting for intangible assets, except:
Definitions
Intangible assets is:
Identifiable non monetary assets
Without physical substance
Held for use in production or supply of goods or services.
Examples:
Licenses
Intellectual property rights
Brand names, publishing titles
Computer software
Patents, copy rights
Motion picture licenses
Customers lists
the time when the Intangible Assets first meet the recognition
criteria till the asset becomes ready for use.
Cost comprises:
Directly attributable cost such as,
Expenditure on materials / services.
Salary, wages and other employee related cost of personnel
directly engaged in generating the assets.
Any other expenditure such as registration fees, amortisation of
patents and licenses etc.
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Amortisation
Amortisation Period
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Amortisation Period
If control over the future economic benefits from
an intangible asset is achieved through legal rights
that have been granted for a finite period, the useful
life of the intangible asset should not exceed the
period of the legal rights unless:
(a) the legal rights are renewable; and
(b) renewal is virtually certain.
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Amortisation Period
Examples
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Thank You
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