Link to IAS 38: acquired intangibles

Learning objectives

• Explain why an intangible asset acquired in a business combination is recognised separately from goodwill if it is identifiable.L3

Normative references

• IFRS 3 §B32Contractual-legal criterion: an intangible asset that meets it is identifiable even if it is not transferable or separable from the acquiree or from other rights and obligations; examples in the Standard: a licence to operate a nuclear power plant (which may be combined with the power plant if their useful lives are similar) and a patented technology licensed together with the licence agreement.
• IFRS 3 §B33Separability criterion: the intangible asset can be separated and sold, transferred, licensed, rented or exchanged, either individually or together with a related item, even if the acquirer does not intend to do so; exchange transactions for that type of asset or a similar asset, even if infrequent, provide evidence of this (for example customer lists, which are frequently licensed), unless confidentiality terms prohibit the sale of that information.

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

1 question

• The separability of an intangible asset acquired in a business combination depends on the acquirer's intention to sell or dispose of it.L3