IAS 38Chapter 5Lesson 1
Intangible assets acquired in a business combination; acquired in-process R&D
Step 1 of 9Learning objectives
Go deeper+1 deeper insight · +1 calculation · +1 journal entry
When an entity buys a company, the acquiree’s intangible assets are measured at fair value at the acquisition date and recognised separately from goodwill, including an in-process research and development project that meets the definition of an intangible asset. Expenditure later incurred on that project follows the research and development rules.
20 minNot started
Learning objectives
- Explain why an intangible asset acquired in a business combination is measured at fair value and why the recognition criteria are, in principle, met.
- Identify the intangible assets to be recognised separately from goodwill, including an in-process R&D project that the acquiree had not recognised.
- Determine and record the treatment of expenditure incurred after acquiring an in-process R&D project.
- Compare the treatment of the same item depending on whether it is acquired in a business combination or generated internally.