IAS 38

In this lesson

1. 0:00 Intangible assets: definition and scope
2. 0:42 Recognition criteria for intangible assets
3. 2:03 Measurement after recognition: cost and revaluation
4. 3:01 Internally generated intangibles and R&D treatment
5. 4:03 Development expenditure: PIRATE recognition criteria
6. 4:37 Amortisation: finite versus indefinite useful lives
7. 5:55 Disclosure requirements for intangible assets

About this lesson

You'll discover when intangible assets like patents, licences, and customer relationships can be recognised on the balance sheet, why internally generated assets like research and development require special treatment, and how to apply the key recognition criteria. By mastering the recognition thresholds, amortisation methods, and disclosure requirements, you'll handle one of the most commonly tested standards with confidence. The lesson covers the core recognition criteria for intangible assets: identifiability, control, probable future economic benefits, and reliable measurement. You'll learn why brands and internally developed assets often fail these tests and must be expensed immediately. For research and development expenditure, you'll use the PIRATE mnemonic to remember the six criteria needed to capitalise development costs — a technique that appears regularly in exam questions. You'll also explore how to measure intangible assets after initial recognition using either the cost model or revaluation model, understand when amortisation applies versus indefinite useful life assessment, and what disclosures examiners expect. The lesson includes practical examples of when active markets exist for revaluation and how to handle the annual impairment reviews that protect financial statements from overstating asset values.

Duration: 7m