How is an intangible asset accounted for? The accounting for an intangible asset is to record the asset as a long-term asset and amortize the asset over its useful life, along with regular impairment reviews. Full story in our blog https://lnkd.in/gcfxJKGx 퐕퐢퐬퐢퐭 퐮퐬 Wisma 퐊퐓퐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru Wisma 퐓퐇퐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru 퐊퐓퐏 (퐀퐮퐝퐢퐭,퐓퐚퐱, 퐀퐝퐯퐢퐬퐨퐫퐲) An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients Website www.ktp.com.my Instagram https://bit.ly/3jZuZuI Linkedin https://bit.ly/3sapf4l Telegram http://bit.ly/3ptmlpn 퐓퐇퐊 (퐒퐞퐜퐫퐞퐭퐚퐫퐢퐚퐥, 퐀퐜퐜퐨퐮퐧퐭/퐏퐚퐲퐫퐨퐥퐥, 퐀퐝퐯퐢퐬퐨퐫퐲) A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients Website www.thks.com.my Facebook https://bit.ly/3nQ98rs

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19/01/22
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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19/01/22
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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19/01/22
Example of intangible assets
 Patent
 Copyright
 Trademark
 Brand
 Software
 Franchise agreements

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19/01/22
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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19/01/22
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