[Illustrative Checklist] Disclosure requirements under Ind AS 38 | Intangible Assets

The objective of Ind AS 38, Intangible Assets, is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Standard. This Standard requires an entity to recognise an intangible asset if, and only if, specified criteria are met. The Standard also specifies how to measure the carrying amount of intangible assets and requires specified disclosures about intangible assets. The Standard states that intangible assets are initially measured at cost, subsequently measured at cost or using the revaluation model, and amortised on a systematic basis over their useful lives unless the asset has an indefinite useful life, in which case it is not amortised but tested for impairment.

As per the stipulation of this standard, an entity must comply with the below-mentioned disclosure requirements:

I. For each class of intangible assets, has entity disclosed the following distinguishing between internally generated intangible assets and other intangible assets:

a) Whether the useful lives are indefinite or finite and, if finite, the useful lives or the amortisation rates used?

b) The amortisation methods used for intangible assets with finite useful lives?

c) The gross carrying amount and any accumulated amortisation (aggregated with accumulated impairment losses) at the beginning and end of the period?

d) The line item(s) of the statement of profit and loss in which any amortisation of intangible assets is included?

e) A reconciliation of the carrying amount at the beginning and end of the period showing:

i) Additions, indicating separately those from internal development, those acquired separately, and those acquired through business combinations?

ii) Assets classified as held for sale or included in a disposal group classified as held for sale in accordance with Ind AS 105 and other disposals?

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