Accounting for Intangibles

Subject: Accounting

Word count: 1700


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Accounting for Intangibles


Intangible assets are defined as assets that are identifiable, however, which have no monetary values. Blaug and Lekhi (2009) are of the view that a company’s investments in intangible assets in recent times represent more than 50% of the total investment of a company. The accounting for intangible assets are done as per various standards as set out by IASB (2012) and majorly on the basis of the IAS 38. IAS 38 sets out the criterion for the recognition, measurement, amortisation and disposal / de-recognition of the intangible assets. The said standard also sets out the disclosure requirements to give the users of the financial statements all the required information.

Accounting for intangible assets presents various challenges for the management as they need to evaluate the entire criterion as set out in the IAS 38. The management needs to be extra careful while checking whether an asset comes under the ambit of the standard or not.


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