Intangible assets are identifiable, non-monetary assets without physical substance, such as patents and trademarks. They should be measured at cost or fair value upon acquisition, and subsequently at cost less accumulated amortization and impairment losses. Amortization is recognized as an expense over the asset's useful life, following a systematic basis.

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How to identify
Intangible Assets?
(MPERS 18)

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What is Intangible assets ?
It is an asset which is
identifiable, non-
monetary without
physical substance.

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What is Intangible assets ?
 Identifiable
can be separated when
acquired
 Non-monetary
cannot convertible to cash
easily
 Without physical substance
unable to touch

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Example of intangible assets
 Patent
 Copyright
 Trademark
 Brand
 Software
 Franchise agreements

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Recognition and measurement
of Intangible Assets
1.Separate acquisition
Measured at cost at the
acquisition date
Costs included:-
 Purchase price
 Import duties, non-refundable
taxes, discount or rebate
 Any directly attributable cost of
preparing the asset for its
intended use

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Recognition and measurement
of Intangible Assets
2. Acquired as part of a
business combination
Measured at fair value
at the acquisition date

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Measurement after Recognition
Cost model
Cost
Less: accumulated
amortisation
Less: accumulated
impairment losses

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Amortisation Period
 Systematic basis over its
useful life
 Amortisation begins when
the intangible asset is
available for use
 The amortisation charge
shall be recognised as an
expense

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Amortisation Method
- Straight-line method or
- Amortisation method
that reflects the pattern
in which it expects to
consume the asset’s
future economic
benefits