Future economic benefits

Learning objectives

• Explain the forms of future economic benefits of an intangible asset (revenue, cost savings).L1, L2

Normative references

• IAS 38 §17Future economic benefits may include revenue from the sale of products or services, cost savings or other benefits resulting from the use of the asset.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

8 questions

• True or false? The future economic benefits flowing from an intangible asset may take the form of cost savings, and not only of revenue from sales.L1
• True or false? Software used only internally cannot provide future economic benefits, since it generates no revenue.L1
• True or false? A process patent that allows the Ferval foundry to reduce its energy consumption provides future economic benefits, even though its selling prices remain unchanged.L2
• True or false? An intangible asset provides future economic benefits only if the entity plans to resell the asset itself to a third party.L2
• In what forms can the future economic benefits of an intangible asset arise?L1
• The carrier Quimper Logistique acquires a licence for route optimisation software that will reduce its fuel consumption. Its customer rates remain unchanged. What form do the future economic benefits of this licence take?L2
• The manufacturer Aquaflo acquires a patent that allows it to produce and market a new model of water filter. Its existing manufacturing costs are not affected. In what form does this patent provide it with future economic benefits?L2
• Which statement about the future economic benefits of an intangible asset is correct?L2