Information by class of intangible assets

Learning objectives

• Identify the disclosures required for each class of intangible assets.L2, L3
• Prepare the checklist of disclosures by class.L3
• Identify the other required disclosures: material assets, assets acquired by way of a government grant, restrictions and pledges, contractual commitments for acquisition.L2

Normative references

• IAS 38 §118By class, distinguishing between internally generated and other intangible assets: finite or indefinite useful lives, useful lives or amortisation rates, methods, gross carrying amounts and accumulated amounts, line items of the statement of comprehensive income, reconciliation of carrying amounts (e: additions by origin, assets held for sale and other disposals, revaluations, impairment losses and reversals, amortisation for the period, exchange differences, other changes).
• IAS 38 §122The entity also discloses: (a) for each intangible asset with an indefinite useful life, its carrying amount and the reasons supporting that assessment, describing the factors that played a significant role; (b) a description, the carrying amount and the remaining amortisation period of any individual intangible asset that is material; (c) for intangible assets acquired by way of a government grant and initially recognised at fair value: that initial fair value, their carrying amount and the subsequent measurement model; (d) the existence and carrying amounts of intangible assets whose title is restricted and the carrying amounts of those pledged as security for liabilities; (e) the amount of contractual commitments for the acquisition of intangible assets.

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

10 questions

• Which of the following does an entity disclose for each class of intangible assets, distinguishing internally generated assets from others?L2
• For each class of intangible assets, IAS 38 requires the information to be presented by distinguishing two subsets of assets. Which ones?L2
• Nérolys presents a Software class made up of assets with finite useful lives. Which information on the amortisation of this class must appear in the notes?L2
• The Altabrin group presents its expenses by function (cost of sales, selling expenses, administrative expenses). Amortisation of its intangible assets is spread across several of these lines. Which information must it give on this point for each class?L3
• Velmorat is preparing the note on its Operating licences class, made up of finite-life assets measured under the cost model. Which of these items must it include?L2
• You are reviewing the disclosure checklist for the intangible asset notes of the Tessarine group. Which of these presentation choices comply with IAS 38?L3
• The Rights and brands class of the Ostrévie group includes brands assessed as having indefinite useful lives and operating rights with finite lives. How must the note for this class deal with useful lives?L3
• In the Vérandel group's note, the Technologies class combines in a single column capitalised development costs from internal projects and patents bought from third parties. Lives, methods, gross carrying amounts and the reconciliation are given for this single column. What is the main shortcoming under IAS 38?L3
• Altamir is preparing the note on its intangible assets, all measured using the cost model. In addition to the reconciliation of carrying amounts by class, which information does IAS 38 require it to disclose when the corresponding situations exist?L2
• Maurévin has pledged a transport licence, recognised at a carrying amount of 450,000, as security for a bank loan. It continues to operate the licence. What information does IAS 38 require for this licence?L2