Subsequent measurement
In this lesson, you'll learn how intangible assets are measured after initial recognition and which approach is most practical for exam purposes. You'll explore the cost model—carrying intangibles at cost less accumulated amortisation and impairment—and the revaluation model, which measures them at fair value.
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In this lesson
- 0:00 Subsequent treatment of intangibles
- 0:10 Cost model versus revaluation model
- 0:23 Why revaluation is rarely used
About this lesson
The key takeaway: the cost model is far more commonly used in practice and exams because intangibles rarely meet the strict criteria for revaluation, which requires an active market and homogeneous assets. Understanding when and why to apply each method is essential for Financial Reporting and Strategic Business Reporting papers.
Duration: 1m
Transcript
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