Intangibles会计上无形资产的确认与构建、摊销.ppt

1、Intangible assets,Research and development Goodwill,Intangible assets,Assets are rights to probable future economic benefit controlled by an entity as a result of a past transaction An intangible asset is an identifiable non-monetary asset without physical form or substance,Nature of intangible asse

2、ts,no physical form and cost hard to identify may not be able to differentiate intangibles from other assets ex brands from goodwill may be more uncertainty over cashflows generated changing business practices have made intangibles more important,Questions relating to intangibles,what is the nature

3、of the asset who controls the right to benefit from the asset what is cost of acquiring asset does asset have finite uel and how should asset be amortised, if at all should asset be recorded at current value,Regulation when should they be recognised / capitalised,FRS 10 included in the balance sheet

4、 only if they can be clearly identified as a separate asset cost measured independently of goodwill and other assets separate market for intangibles historical cost readily ascertainable,IAS 38 Separately identifiable or arise from separate contractual or legal rights Controlled by the entity If it

5、is probable that the expected future economic benefits that are attributable to the asset will flow to the entity Cost of the asset can be measured reliably,IAS 38,Cost Separate acquisition Acquired as part of a business combination Internally developed Accounting treatment Capitalise if criteria me

6、t Expense in income statement if not Accounting treatment subsequent to initial recognition Cost accumulated amortisation Amortised over UEL If indefinite life, subject to impairment review Revaluation only if active market,IAS 38- disclosure,Whether uel are indefinite or finite Amortisation methods

7、 used Where amortisation included in income statement Gross carrying amount and accumulated amortisation at the beginning and end of the period Reconciliation of the carrying value at the beginning and end of the period,Research and development,Research and development,R+D - often viewed as strategi

8、c investment to enhance future competitiveness, survival and profits House of Lords - “R+D has to be regarded as an investment which leads to growth and not as a cost”,Nature of R+D,intangible and often speculative future cashflows uncertain some will not be successful may be difficult to establish

9、link between expenditure and benefit with reasonable certainty (often many years apart) no independent market for R+D,Accounting treatment (SSAP 13),considerable difficulty in producing standard defines pure research, applied research and development write off pure and applied research as expense wr

10、ite off development too unless certain criteria met - may then capitalise and amortise,Definitions for you to find in the SSAP 13,Pure research Applied research Development,Criteria for capitalisation,clearly defined project related expenditure is separately identifiable outcome of project has been

11、assessed with reasonable certainty as to technical feasibility and commercial viability deferred development costs and future development costs are expected to be exceeded by future revenue adequate resources exist, or are reasonably expected to be available, to enable the project to be completed,IA

12、S 38 - research,Expenditure on research shall be recognised as an expense since an entity cannot demonstrate that an intangible assets exists that will generate probable future economic benefits Activities aimed at obtaining new knowledge Search for, evaluation and final selection of, applications o

13、f research findings or other knowledge Search for alternatives for materials, devices, products, systems and services The formulation, design, evaluation and final selection of possible alternatives for new or improved materials, devices, processes, systems or services,IAS 38 - development,Expenditu

14、re is recognised as development if the entity can identify an intangible asset and demonstrate that the asset will generate probable future economic benefits. Design, construction and testing prototypes and new technologies Design, construction and operation of a pilot plants Design, construction an

15、d testing of alternative materials, devices, products, processes, systems or services,Capitalising development costs,Intangible asset shall be capitalised if and only if an entity can demonstrate all of the following: Technical feasibility Intention to complete the asset Ability to use / sell the as

16、set Asset will generate probable economic benefit Availability of adequate technical, financial and other resources to complete the asset Ability to measure reliably the expenditure attributable to asset during its development,Application of IAS 38 for R+D,Can capitalise costs only after the project

17、 satisfies the IAS 38 criteria All research and development costs that are used in the project are capitalised Staff costs Material costs Overheads Depreciation on non current assets Amortisation of R+D usually amortised when the product is being sold Amortisation policy in proportion to sales value

18、 of product Marketing and sales expenses are NOT included in R+D,Lecture example- capitalise,Amortisation of R+D,Sales in 2x13, 2x14 and 2x15 used as amortisation basis 2x13 amortisation = 700,000/2,000,000 * 1,400,000 = 490,000 2x14 amortisation = 900,000/2,000,000 * 1,400,000 = 630,000 2x15 amorti

19、sation = 400,000/2,000,000 *1,4000,000 = 280,000,Lecture example do not capitalise,Comparison of SSAP 13 and IAS 38 in relation to R+D,Seminar part a week 10 Critique of SSAP 13 and IAS 38 SSAP 13 and IAS 38 available via EARL Details in seminar folder -other readings from older textbooks in seminar

20、 folder,Critiquing accounting standards,Assessing standards sheet,Goodwill,Goodwill,Future economic benefits arising from assets that are not capable of being individually identified and separately recognised arises due to assets used together having higher value than individual assets internally ge

21、nerated goodwill - IAS 38 purchased goodwill IAS 38, IFRS 3,Why are intangibles and goodwill hard to account for,characteristics and nature conflicting accounting polices economic consequences of treatment,Characteristics of goodwill,incapable of realisation separately from the business value of gw

22、highly subjective no reliable or predictable relationship to costs individual factors which may contribute to gw hard to value value of gw can fluctuate widely in short term,Internally generated goodwill,Internally generated goodwill generally not capitalised Do not fulfil the criteria in IAS 38 Con

23、trolled by entity Probable future economic benefit Cost measured reliably Not separately identifiable,Purchased goodwill,Arise on acquisition of group companies by H Conflicting accounting policies Economic consequences,Conflicting accounting policies,carry as asset indefinitely with no amortisation

24、 carry as asset and amortise through IS over uel carry as asset and amortise through P+L reserves bfwd over uel eliminate against P+L bfwd reserves immediately charge as expense in IS in year of acquisition Keep as separate balance in shareholders reserves,Lecture example - Goodwill and profit calcu

25、lation,Goodwill Cost of investment = 200,000 Share capital and reserves at acquisition = 5,000 + 100,000 Goodwill = 200,000 80% * 105,000 = 116,000 Profit for year 80,000 + 80% * 55,000 = 124,000,Goodwill polices workings in 000,Economic consequences,Potentially big impact on profits SSAP 22 choice

26、was to capitalise and amortise or write off against reserves Preferred treatment writing off reserves Resistance to capitalise and amortise Fitted in with dominance of prudence concept at this time Argument was that whole economy would be effected FRS 10 preferred treatment = capitalise and amortise IAS 38 / IFRS 3 preferred treatment = capitalise wit