Amortization of intangible is allowable in IFRS?
Amortization of intangible is allowable in IFRS?
www.shakyamuniacademy4ca.com (CA Coaching center) (371 Points)
17 June 2009
20 Replies
www.shakyamuniacademy4ca.com
(CA Coaching center)
(371 Points)
Replied 23 June 2009
Amortization of intangible is allowable in IFRS?
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 26 June 2009
No in the ifrs you need to do the Impairment test.
Goodwill cant be amortised.. It should be tested for impairment and in the first year whatever be amount is there you need to charge to P/L
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 26 June 2009
its ok buddy .. but i sugget u read the standard that will be give more clearity and confidence
www.shakyamuniacademy4ca.com
(CA Coaching center)
(371 Points)
Replied 27 June 2009
Hi Amit,
Can please u suggest books for IFRS.if u have any information post me.
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 27 June 2009
pwc manual reporting is good book
Narayanan Balakrishnan
(Chartered Accountant)
(98 Points)
Replied 31 July 2009
Intangibles other than goodwill are required to be amortised in accordance with paras 95-97 of IAS 38.They will also be required to be tested for impairment. However goodwill cannot be amortised but are reqired to be tested for impairment (IFRS 3).
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 01 August 2009
Narayanan is correct.. One thing u have to know in ifrs.. Ifrs beleives in the substance over form
C.A Rohit Gambhir
(C.A)
(275 Points)
Replied 11 August 2009
Amortisation of Intangible Assets :
1. The depreciable amount of intangible assets with finite useful lives is to be allocated over its useful life.
2. Intangible assets with indefinite useful lives are notto be amortized. However, the asset must be tested for impairment annually and whenever there is an indication that it may be impaired. IAS 36 provides guidance on impairment.
3. The determination of an indefinite useful life must be reassessed at each balance sheet date. If the assessment changes, it is to be treated as a change in accounting estimate.
4. Amortization shall commence when the asset is ready for use and shall cease when it is derecognized or is reclassified as held for sale under IFRS
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 11 August 2009
Recently i posted complete theory in the summary .. related to intangible assets. Please go through so every thing will be clear to u.. and in summary rohit answer is abslty fine
Narayanan Balakrishnan
(Chartered Accountant)
(98 Points)
Replied 11 August 2009
It all depends on the life of the intangible asset. Intangible assets which are of permenant nature are not amortised but tested for impairment. For eg Trading rights in Stock exchanges, patents, player rights in sports etc will not be amortised unless thay are for a limited period.
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 12 August 2009
If any assets have useful life they are amortised according to there useful life and in case of infinite life it will be tested for impairment every year
But if any time it will be indication that assets nature is changed and it life will be finite. than assets will be amortised in the remaining life and impact will be effective prospectively not retrospectively
C.A Rohit Gambhir
(C.A)
(275 Points)
Replied 12 August 2009
Dear Amit,
The life of intangible asset may be indefinite but not infinite. There is a very thin line of demarkation between the word indefinite and infinite. Here we should use word indefinite.
Recent Topics
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
- MAHARASHTRA CHARITY COMMISSIONER WEBSITE
- Explanation 3 to section 11(1) read with section 4
- Ammendment in Partnership On Death of Partner and
- TDS Provisions applicability Tax Audit Individual
- NAME CHANGE OF HUF
- Advisory for Reporting TDS Deducted by scrap Deale
- Section 194 J Technical Service/Professional Servi
- Solving of Export Related Problems
Related Threads
CAclubindia
