AASB 138 defines the value of intangible assets. AASB 138 incorporates AASB 138 (Intangible Assets) provided by the International Accounting Standards Board (IASB). AASB 138 defines how assets are to be identified, assets to be valued and asset disclosure policies to be established. (Steenkamp and Steenkamp, 2016)
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Identifiability |
In order for property to be identified, the property must be isolated from the business or it may arise from a legal document (such as a contract) or a law (such as a trademark). |
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Non-Monetary |
An intangible asset must be non-financial, in the sense that you cannot include it in income or decision. |
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Lack of Physical Substance |
Lack of physical equipment of the property is classified as incapable. So this is something you can't touch or touch. For example, a trademark is not physical. |
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Control |
Asset control and how you should be able to do it. Whether or not you have asset management also depends on whether you have the power to profit from future business initiatives. In addition, you need to be able to prevent others from gaining business advantages. |
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Future Economic Benefit |
Another important factor to consider is the future market value of the asset. It is important to be able to determine how the assets will benefit from future purchases. In addition, you need to be able to accurately measure future business results. Future business benefits include savings in revenue and expenses from sales or services. |
Copyrights are one of the Intellectual Properties that companies use to protect the originality and exclusivity of their content, approach and ideas. All intellectual property is inaccurate and is sometimes treated as Financial Capital.
In the financial statements, they are classified as Intangible Assets only when they exist. In the first case, copyright is created internally and thus no value can be capitalised unless it is traded or sold. Advertising, printing, shipping, marketing, etc. Other expenses such as will be recorded in the balance sheet, because Marlene Ltd receives the exact amount for them, and this contributes to income. However, according to intellectual property law, if there is no correlation between costs, the measurement of internal intellectual property will not be recorded in the balance sheet. Therefore, this type of law will not be covered in the Financial Statements
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Assets |
Amount $ |
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Non-Current Assets |
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Copyright 1 ( Net of Amortisation ) |
10,417 |
=12500-((12500/5)*10/12) |
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Copyright 2 |
24,000 |
No amortisation because it has an indefinite useful life. |
In the second case, the law was bought by King George University Press for $ 24,000. Therefore, the exact amount is directly related to the law and the Property can be closed as a step. As long as this law has an indefinite useful life, there will be no annual withdrawal right
The book is copyrighted for $ 10,500. (Tzikas, 2015)
Copyright is expressed in assets that do not have potential in the financial statements. However, internally capitalised research and development costs related to intangible assets cannot be used
Thus, $ 10,500 is spent. CopyRight was purchased by King George University Press for $ 12,000 and has an unlimited lifespan. Has intangible assets Indefinite useful lives are not depreciated, but are tested annually for impairment. As a result, on June 30, 2022, Intangible Assets were included in the inventory section of Sarah Ltd's financial position statement.
References
Steenkamp, N. and Steenkamp, S., 2016. AASB 138: catalyst for managerial decisions reducing R&D spending?. Journal of Financial Reporting and Accounting, 14(1), pp.116-130.
Tzikas, K., 2015. Copyrights: Everything you need to Know. Intellectual Property Rights: Open Access, 03(01).
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