The Standard requires an entity to recognise an intangible asset if, and only if, certain criteria are met. First-time adoption of Ind AS 59 Ind AS 101, First-time Adoption of Indian Accounting Standards 10. Ind AS 38 & CAS •Following are references to IA in different CAS •CAS 16 –Amortisation –Maximum useful life of IA 10 years (Ind AS doesn’t specify) –Sch. Effects of changes in foreign exchange rates 55 Ind AS 21, The Effects of Changes in Foreign Exchange Rates 9. Is based on the assumption that the useful life of an intangible asset is always finite, and includes a rebuttable presumption that the useful life cannot exceed ten years from the date the asset … The class will be conducted in English and the notes will be provided in English. Latest Videos. Ind-AS 38 requires an entity to recognize an intangible asset if and only if: It is probable that the future economic benefits that are attributable to the asset will flow to the entity; and; The cost of the asset can be measured reliably. Ind AS 12 Income Taxes: 17. Auditing & Assurance - (Day 2 Video) - Commonly found... Startup Trilogy: Compliance, Management & Fundraising... Startup Trilogy: … Under IND AS 38, R&D expenditure that relates to an inprocess R&D project acquired separately or in a business combination shall be accounted as Intangible Asset. E-learning Module on Ind AS 38. This Standard requires an entity to recognise an intangible asset if, and only if, specified criteria are met. The Standard requires an entity to recognise an in­tan­gi­ble asset if, and only if, certain criteria are met. Objective 1 The objective of this Standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Standard. Indefinite life does not mean infinite life at all. Ind AS 38 recognizes that the useful life of an intangible asset can even be indefinite subject to fulfilment of certain conditions, in which case it should not be amortised but should be tested for impairment. Ind AS 7 Statement of Cash Flows: 13. Answer: Under Ind AS 38 - Intangible Assets - intangible assets can only be recognised if they are identifiable and have a cost which can be reliably measured. IAS 38 – Intangible Assets. Subsequently, the MCA has notified the Companies (Indian Accounting Standards) (Amendment) Rules, 2016/2017 to carry out certain amendments/ omissions in the above Ind ASs and to introduce two new Ind AS 11 and 18. Dnv�ŠÉzˆc+¢‚2Ò¸Áƒ¾UL(šº@ In this session, CA Nikhil Jobanputra will discuss Ind AS 38 Intangible Assets. IND AS 38: CA Vaibhav Jain | CA Jai Chawla | CA Anuj Jalota | CA Praveen Sharma | CA Manoj Gupta | CA Sumit Sarda | IFRS Gyan | CA Bhavik Chokshi | CA Chiranjeev Jain | CA Gopal Somani | CA Nitin Gupta | CA Raj K Agrawal |Silvia M. In this regard, the Ind AS 38 prescribes the principles for measurement, valuation, recognition and the accounting treatment for intangible assets that are not dealt with specifically in another Ind AS. This ends the post. The standard also specifies how to measure the carrying amount of intangible assets and requires certain disclosures regarding intangible assets. Paragraphs in bold type indicate the main principles.) There is no major difference between INDAS 38 AND IAS 38.So the following details relate to both INDAS 38 and IAS 38. Professional Course, Online Excel Course Statements of Profit and loss and other Comprehensive income, Statement of changes in Equity and Statement of Financial position are the new names of Financial Statements as per IND … 1. Get to know the investigational new drug application (IND). FREE EXCERPT. Tweet . Is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Ind AS. Provisions and contingencies Recognition Provision Contingency Measurement Best estimate Anticipating future events Reimbursements Disclosure Provisions Contingent asset Contingent liability Risks and uncertainties Present value Expected disposals of assets Contingencies 3. Please provide summary on Ind AS 38 - Intangible Assets Some intangible assets may be contained in or on a physical substance such as a compact disc (in the case of computer software), legal documentation (in the case of a licence or patent) or film. An entity moving from Indian GAAP to Ind AS needs to apply the requirements of Ind AS 101. Updated on 09 April 2020. Indian Accounting Standard (abbreviated as Ind-AS) is the Accounting standard adopted by companies in India and issued under the supervision of Accounting Standards Board (ASB) which was constituted as a body in the year 1977. The standard requires an entity to recognize an intangible asset, if and only if, certain criteria are met. This Standard requires an entity to recognise an intangible asset if, and only if, specified criteria are met. It measures various factors which affects our brand value example company’s reputation, strategies, employee relation and customer base. Professional Course, India's largest network for finance professionals, All You Need to Know About UDIN (Unique Document Identification Number) by Chartered Accountants in Practice, Cancellation of registration under Rule 22 of the CGST Rules aligned with newly inserted sub-rule (2A) of Rule 21A, Equalisation Levy - Most Vital Concept in International Taxation, GST - Due Date Compliance Calendar for January 2021 and Recent Updates on The Portal, Role of Dividend Tax in Achieving the Essence of the Budget, expenditure on the development and extraction of minerals, oil, natural gas, and similar resources, intangible assets arising from insurance contracts issued by insurance companies. Other Articles by - substance; 5: tangible and intangible elements contained in same It applies to an entity’s first Ind AS financial statements and the interim reports presented under Ind AS 34, ‘Interim financial reporting’, which are part of that period. The objective of Ind AS 38 is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another IFRS. CA Diwakar Jha, You can also submit your article by sending to article@caclubindia.com, GST certification The basic requirement is … ind as 38: intangible assets; 1: introduction; 2: scope; 3: what is an intangible asset; 4: is it necessary that ia would be without physical. The Standard requires an entity to recognise an intangible asset if, and only if, certain criteria are met. Indian Accounting Standard (Ind AS) 101 First-time Adoption of Indian Accounting Standards: Indian Accounting Standard (Ind AS) 102 Share-based Payment: Indian Accounting Standard (Ind AS) 103 Business Combinations: Indian Accounting Standard (Ind AS) 104 Insurance Contracts: Indian Accounting Standard (Ind AS) 105 Non-current Assets Held for Sale and Discontinued Operations: … Tags: ICAI. The standard also elaborates how to ascertain the carrying value of intangible assets and requires specified disclosures in relation to intangible … Ind AS 1 paragraph 31 states that a specific disclosure requirement in a standard need not be satisfied if the information is not material, except when required by law. E-learning Module on Ind AS 38. 01 | Ind AS: Practical perspectives - Issue 01/2016. If asset is generated internally, then the expenditure incurred in development phase shall be the recognition value. Following are the list of Intangible Assets which are out of scope of Indian AS 38:- CA Diwakar Jha  Ind AS 10 Events after the Reporting Period: 15. Ind AS 11 Construction Contracts: 16. It sets out the criteria for recognising and measuring intangible assets and requires disclosures about them. EXCLUSIONS (i) AS- 26: The Existing AS-26 (Para 5), does not apply to accounting issues of specialised nature that arise in respect of accounting for discount or premium relating to borrowings and ancillary costs incurred in connection with arrangement of borrowings, share issue expenses and discount allowed on issue of shares. An item is identifiable if it is separable or arises from contractual or other legal rights. .=¨¸İ¢%2ñeT;è~í fÓ†÷¢y”õeøDŞ ƒ-è*U„h$±ªæ€Ãj1áBLåJ:o¸ Primary navigation links. E-learning Module on Ind AS 38. REVALUATION MODEL – IAS 16 – DipIFR. Ind AS 38 prescribes the accounting treatment for intangible assets that are not dealt with specifically in another Ind AS. Any gain or loss on de-recognition shall be recognized in Profit & Loss A/c. The box on each page (headed ‘Reference’) can be used to insert a reference to the relevant part of the financial statements (for example, Note 7) for all items that have been marked ‘Y’ in the adjacent box. Ind AS 38 – Research and Development – INTANGIBLE ASSETS. Professional Course, GST Annual Return accumulated amortization and impairment losses. Indian Accounting Standard (Ind AS) 38 Intangible Assets. Ind AS 37 – Provisions, Contingent Liabilities and ContingentAssets; 2. The standard requires an entity to recognize an intangible asset, if and only if, certain criteria are met. Revenue 45 Ind AS 18, Revenue 7. Ind AS 108 Operating Segments: 10. Active cases across state have dipped by nearly 38 pc in Dec: Health officials Maharashtra has touched 19.09 lakh Covid-19 cases till date. The Standard also specifies how to measure the carrying amount of intangible assets and requires certain disclosures regarding intangible assets. Recognition criteria: Ind AS 38 requires an entity to recognize an intangible asset, when purchased or self created if, and only if: If an intangible item does not meet both the definition of and the criteria for recognition as an intangible asset, Ind AS 38 requires the expenditure on this item to be recognized as an expense when it is incurred. (adsbygoogle = window.adsbygoogle || []).push({}); The increase in carrying amount to the extent of previous revaluation decrease shall be recognized in Profit & Loss A/c and the balance amount of revaluation to Other Comprehensive Income statement. QÔsaxN/>Ó¸dNY’¹&c.Ìãµ]º‡{rp8Xƒ`á`©Ğ“�ÄTÒ•*Kfä0kUß@– ) Ó›­–�W�M®_ãèT\åÊÍÖËÕظ¼Ú­VGBÀbı\{u ËŞKИ €4�@ß A¡èay‚oì™°,¯äv.GÛ. Share your views and opinions with us in the comments section below. Two types of life have been mentioned in the standard: Finite Life: A limited period of benefit to the entity from the asset. PP&E, Ind AS 40 Investment properties and Ind AS 38 intangible assets 101.3 Transitional relief from retrospective application of effective interest method or impairment requirements for financial instruments carried at amortised cost Exemption regarding translation of long-term monetary assets This includes the types, laws and regulations, and emergency use of INDs. Leases 49 Ind AS 17, Leases 8. These criteria are very difficult to satisfy for internally developed intangibles. 1 . Ind AS 38 prescribes the accounting treatment for intangible assets that are not dealt with specifically in another Ind AS. Computer Based Exam For IFRS In December 2020 . Income taxes 37 Ind AS 12, Income Taxes 6. line items in the income statement in which amortization is included. If asset is acquired separately, then it shall be recognized at acquisition cost. As it continues to report between 3,000 and 5,000 new cases on a daily basis, the caseload is set to cross the 20 lakh mark soon. Ind AS 38, Intangible Assets 63 Ind AS 40, Investment Property 67 Ind AS 41, Agriculture 69 Ind AS 101, First-time Adoption of Indian Accounting Standards 72 Ind AS 102, Share-based Payment 77 . Ind AS 38, Intangible Assets Ind AS 40, Investment Property 5. intangible assets covered by another Ind AS, such as: assets arising from employee benefits plan. The objective of this Standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Standard. Indian Accounting Standard (Ind AS) 38 : Intangible Assets. Recognition and measurement 1. 1 . it is probable that the future economic benefits that are attributable to the asset will flow to the entity; and. Objective. Indian Accounting Standard (Ind AS) 38 Intangible Assets (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Indian Accounting Standard 38 Intangible Assets Contents Paragraphs OBJECTIVE 1 SCOPE 2–7 DEFINITIONS 8–17 Intangible assets 9–17 Identifiability 11–12 Control 13–16 Future economic benefits 17 RECOGNITION AND MEASUREMENT 18–67 Separate acquisition 25–32 Acquisition as part of a business combination 33–43 Measuring … Ind AS 32 and Ind AS 109 - Financial Instruments: Classification, recognition and measurement 5. The definition of a financial instrument is broad. Ind AS 38 applies to all intangible assets other than: An identifiable non-monetary asset without physical substance controlled by the entity, from which future economic benefits are expected to flow towards the entity. ßR(ZR°ˆ^ÉgUÇFÒDç¬30¢¥AÁÁÁDÀè]ªûÅÑÖ§˜æ$¦!oªÂsöÂya¤_ç†ëΉo‘� Ind AS 38 Intangible Assets The objective of Ind AS 38 is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Standard. The objective of Ind AS 38 is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Ind AS. Indefinite Life: No foreseeable limit to the period over which the asset is expected to generate net cash inflows for the entity. 1 . the cost of the asset can be measured reliably. Ind AS 1 Presentation of Financial Statements : 11. This class would be helpful for the aspirants preparing for the CA Final exam. Goodwill is an asset which is created when a business obtain a strong position in its market. Ind ASs refers to the accounting standards as specified in the Annexure to the Companies (Indian Accounting Standards) Rules, 2015. Objective . ]¥¼PßMI>‘È9D—’ÚFp‹1””2•»ê\Ã2/˜‰Ágõ o­„më¢^•;2ÀAÇZ Ó6:§*šßÑ 4ı‡]ÒÕıÍÓ–oĞK¥3"ÇœÔ[ºÔ”D͸L|˜º§¡9|ˆ9àDV¬© Goodwill acquired under business combination. 8Bc°7ûZ†o#�0½¥B0,¥›©°Ã�‚DHb¾áÀë&1˜| °2UĞvwÉ@¯µ�¶Ñ¥–'TVÂ[úÑ†å® ¬ wÍÔ�œF! Category: INDAS. As 26 vs ind as-38 1. The Indian Accounting Standards (Ind AS), as notified under section 133 of the Companies Act 2013, have been formulated keeping the Indian economic & legal environment in view and with a view to converge with IFRS Standards, as issued by and copyright of which is held by the IFRS Foundation. Ind AS 101 is to be applied by the entity in preparation of its first Ind AS financial statements and each interim report, if any, that it presents in accordance with Ind AS 34, Interim Financial Reporting for part of the period covered by its first Ind AS financial statements. If asset is acquired in a business combination or through a government grant, then recognition shall be at fair value of the asset. Web site costs shall be recognized separately. Indiana Code For Year 2020. Ind AS 116 Leases -IFRS 16 Leases. In case of finite useful lives, intangible assets should be amortized over their useful life and test for impairment should be done, when there is an indication. 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