IAS 38 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Separate acquisition: cost of the intangible asset
Acquisition of a management software licence
Section 1 of 9
Objective
Section brief
- What to document
- The engagement, its scope and the working mode chosen.
- Why
- A workpaper answers one precise question: framing it avoids off-topic work.
- How
- Read the objective and the assignment, then choose the mode (guided, semi-guided, professional).
- Expected result
- You know which question the workpaper must settle, and for which reporting date.
- Your role
- Preparer of the IAS 38 workpaper
- Level
- Foundation
- Estimated time
- ≈ 35 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Transports Delmar (a fictitious company) runs delivery rounds and closes its accounts on 31 December. It applies the cost model to its intangible assets. In 20X1, it acquires from a vendor a perpetual licence for route optimisation software. You are asked to account for the acquisition from the documents below.
Assignment
Workpaper Cost of a separately acquired intangible asset.
Purpose of the workpaper
Check that the item acquired meets the definition and the recognition criteria, classify each expenditure (capitalised or expensed), determine the cost (net purchase price and directly attributable costs up to the date the asset is capable of operating as intended) and record the acquisition and the expenses.
Questions of the file covered by this workpaper
- Does the licence meet the definition of an intangible asset and the recognition criteria?
- Determine the cost of the licence and the total costs to be expensed.
- Which journal entries do you record in 20X1?
Documents in the file
Open the documents to pick out the relevant information.