INTANGIBLE FIXED ASSETS

These primarily encompass startup costs, capitalised development costs, patents,
licences, concessions and similar rights, leasehold rights, brands, market share,
software and goodwill arising on acquisitions
Under IAS, a company is required to recognise an intangible asset (at cost) if
and only if:

1)it is probable that the future economic benefits that are attributable to the asset
will flow to the company; and if

2)the cost of the asset can be reliably measured.
Internally generated goodwill, brands, mastheads, publishing titles, customer lists
should not be recognized as intangible assets.

Internally generated goodwill is
expensed as incurred. Costs on starting up a business, on training, on advertising,
on relocating or reorganizing a company receive the same treatment.
This line item requires special attention since companies have some degree of
latitude in treating these items that now represent a significant portion of
companies’ balance sheets.

Click here for government certification in Accounting, Banking & Finance