The objective of IAS 16 Property, Plant and Equipment is to prescribe the accounting treatment for property, plant, and equipment (PP&E) so that users of the financial statements can discern information about the entity’s investment in its PP&E and any changes in those investments.

As you review IAS 38 Intangible Assets, you will notice that there is a definite similarity to IAS 16. This stands to reason, given that both sections deal with long-term assets. However, IAS 38 includes additional requirements that stem from the specific characteristics and risks associated with intangibles.

The objective of IAS 38 is to prescribe the accounting treatment for intangible assets that are not specifically dealt with in another standard. IAS 38 defines the criteria for asset recognition, specifies how carrying amounts should be measured in subsequent periods, and provides guidance on required disclosures.