Intangible Assets - IAS 38

sitar bubblegum dance, afro-cuban jazz crunk, drill breakbeat · 3:28

Listen on 93

Lyrics

[Verse 1]
When assets lack a body you can touch
No warehouse holds these treasures in their clutch
Patents, trademarks, software codes that gleam
Identifiable, controlled, future streams
But recognition needs a stricter test
Probable benefits and costs assessed

[Chorus]
I-D-E-N-T-I-F-Y the asset first
C-O-N-T-R-O-L the benefits dispersed
Future economics flowing to your door
Recognition when it's probable and more
IAS thirty-eight will be your guide
Through the intangible divide

[Verse 2]
Research spending hits expense today
No asset born from knowledge gathering's way
But development shifts when criteria align
Technical feasibility draws the line
Intention and ability to complete
Resources adequate to make it neat

[Chorus]
I-D-E-N-T-I-F-Y the asset first
C-O-N-T-R-O-L the benefits dispersed
Future economics flowing to your door
Recognition when it's probable and more
IAS thirty-eight will be your guide
Through the intangible divide

[Bridge]
Finite lives get amortized each year
Useful life determines how severe
Indefinite means no foreseeable end
Annual impairment tests you must defend
Residual value rarely comes to play
Zero's usually what the books display

[Verse 3]
Internally generated goodwill stays
Off the balance sheet through all its days
Brand names built through advertising spend
Cannot be capitalized, just expense them
Subsequent costs enhance or maintain
Only enhancement qualifies the gain

[Chorus]
I-D-E-N-T-I-F-Y the asset first
C-O-N-T-R-O-L the benefits dispersed
Future economics flowing to your door
Recognition when it's probable and more
IAS thirty-eight will be your guide
Through the intangible divide

[Outro]
Separable or arising from a right
Makes identification crystal bright
Measure cost initially, then choose your way
Cost or revaluation model day by day

← Property, Plant & Equipment - IAS 16 | Lease Accounting - IFRS 16 →