IAS 38 Intangible Assets

Overview

IAS 38 Intangible Assets outlines the accounting requirements for intangible assets, which are non-monetary assets which are without physical substance and identifiable (either being separable or arising from contractual or other legal rights). Intangible assets meeting the relevant recognition criteria are initially measured at cost, subsequently measured at cost or using the revaluation model, and amortised on a systematic basis over their useful lives (unless the asset has an indefinite useful life, in which case it is not amortised).

IAS 38 was revised in March 2004 and applies to intangible assets acquired in business combinations occurring on or after 31 March 2004, or otherwise to other intangible assets for annual periods beginning on or after 31 March 2004.

Cost Accounting Standard 420 - IR&D, B&B Costs

One needs to look at FASB., Statement No. 2, so see if that statement is applicable or IAS 38 is applicable to the transaction in question. Once that is determined, it must be determined if the current accounting is in alignment with the requisite standard.