ACCOUNTING

Accounting

Accounting

An intangible asset shall be recognized if, and only if, it is probable that the future economic benefits attributable to the asset will flow to the entity and its cost can be measured reliably. Probability will be assessed using reasonable and supportable assumptions that comprise management's best estimate of the financial situation that will exist over the useful life of the asset. The probability recognition criteria is always considered to be satisfied for separately acquired intangible assets and intangible assets acquired as part of a business combination

Specific directions apply in esteem of internally generated intangibles. Internally generated goodwill internally generated brands, mastheads, publishing titles, customer lists and items similar in substance and research expenditure must not be recognized. Specific acknowledgement criteria apply to development expenditure.

Where the study phase of an interior task will not be differentiated from the development phase, the expenditure on the project is classified as study and it should be expensed. Intangible assets are primarily assessed at cost. Where a not-for-profit entity comes by an intangible asset for no cost, or for a nominal cost, the cost is the equitable worth of the asset as at the date of acquisition. The cost of individually acquired intangible assets includes the purchase price and any exactly ascribed cost of organizing the asset for use.

The cost of intangible assets acquired as part of a business combination is its fair value at acquisition date set out the costs that can be capitalized for internally generated intangible assets (direct costs) and those costs that must be expensed (these include training, selling, administrative and general overheads) scrounging charges specify the criteria for the recognition of borrowing costs in internally developed intangible assets.

Leases

A lease is an affirmation whereby the lesser conveys to the lessee in come back for a payment or sequence of ...