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متابعة

Name the term used for depreciating a company's intangible assets?

Relate to Accounts

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تم إضافة السؤال من قبل Mohammed Hassan , Senior Accountant , Eco Environmental Services
تاريخ النشر: 2013/11/16
Mohammed Salim Allana
من قبل Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

Revaluation of Assets as per market standards. Moodys or S&P ratings for company's goodwill.

Khaled Abdelrehim ACCA DipIFR CMA
من قبل Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

Amortization

Jafar Hussain Bhalam
من قبل Jafar Hussain Bhalam , Assistant Finance Manager , Giesecke & Devrient FZE

 

The cost less residual value of an intangible asset with a finite useful life should be amortised on a systematic basis over that life.

   - The amortisation method should reflect the pattern of benefits.

   -  If the pattern cannot be determined reliably, amortise by the straight line method

  -  The amortisation charge is recognised in profit or loss unless another IFRS requires that it be included in the cost of another asset.

 

An intangible asset with an indefinite useful life should not be amortised.

 

 Its useful life should be reviewed each reporting period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. If they do not, the change in the useful life assessment from indefinite to finite should be accounted for as a change in an accounting estimate.

Adnan Ahmed Siddiqui
من قبل Adnan Ahmed Siddiqui , Accounts & Finance Manager cum Company Secretary , Global Gums and Chemicals (Private) Limited

Demortization

SHAIKH MOHAMMED BASHEER AHMED SHAIKH
من قبل SHAIKH MOHAMMED BASHEER AHMED SHAIKH , Account Manager , Tarik Al Zahid Holding Company

Intangible assets are measured by either cost model or revaluation model. But the term used for depreciating the intangible assets are "amortization". It should be amotized in a systematic manner over the useful lives.

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