As we review this standard, you will notice that there is a definite similarity to IAS 16 Property, Plant and Equipment, which was the subject of the previous article in this PD Net series. 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.

IAS 38 Intangible Assets — 2011

For a more comprehensive introduction to the adoption of IFRSs, see the online course, IAS 16/IAS 38. You must be registered to access and purchase the course.

Further resources on IFRS/IAS

Other IFRS/IAS articles and Professional Development Courses on PD Net