ACCA SBR ^UK Syllabus C. Reporting The Financial Performance Of A Range Of Entities - Intangible assets other than goodwill - Notes ^{8 / 24}

Intangible assets other than goodwill

Section 18 of FRS 102 deals with intangible assets, and differs from IAS 38 in the following ways:

IAS 38	FRS 102 Section 18
IAS 38 requires development expenditure to be capitalised where it meets the recognition criteria.	Capitalisation of development expenditure is optional, although a consistent accounting policy should be adopted.
IAS 38 does not exclude heritage assets.	Heritage assets are specially excluded from the scope of FRS 102, with separate guidance instead provided for such assets.
IAS 38 requires an intangible asset acquired in a business combination to be recognised when it arises from legal or other contractual rights even if there is no history or evidence of exchange transactions for the same or similar assets and otherwise estimating fair value would be dependent on immeasurable variables.	Under FRS 102, an intangible asset acquired in a business combination shouldnot be recognised when it arises from legal or other contractual rights and there is no history or evidence of exchange transactions for the same or similar assets and otherwise estimating fair value would be dependent on immeasurable variables.
If an intangible asset is acquired by way of a grant, IAS 38 states that there is a choice of recognition at fair value or at the nominal value of the grant.	FRS 102 states that the cost of that intangible asset is its fair value at the date the grant becomes receivable.
IAS 38 permits intangible assets with both finite and indefinite useful lives.	All intangible assets are considered to have a finite useful life under FRS 102.
IAS 38 contains no maximum limit for the useful life of an intangible asset where an entity is unable to make a reliable estimate.	If an entity is unable to make a reliable estimate of the useful life of an intangible asset, a maximum useful life of ten years is allocated.
IAS 38 requires the amortisation method and period for an intangible asset to be reviewed at least at each financial year-end.	If indicators of a change exist then the amortisation method and period for an intangible asset should be reviewed.