IAS 38Chapter 2Lesson 1
What is an intangible asset?
Step 1 of 9Learning objectives
The entry point to IAS 38: recognising an intangible asset. A non-monetary asset without physical substance that must be identifiable (separable or arising from rights), controlled by the entity and a source of future economic benefits. You will learn to apply these three pillars to everyday items: software, licences, staff, customers, know-how.
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Learning objectives
- Recognise, among everyday examples, what an intangible asset is and what sets it apart from a tangible or monetary asset.
- State the three pillars of the definition: identifiability, control and future economic benefits.
- Determine whether an item is identifiable (separability or contractual or legal rights) and whether the entity controls it.
- Assess a series of items, distinguishing those that meet the definition from those that stay off the balance sheet.