Revaluation of Intangible Assets

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IFRS2020
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Joined: 25 Sep 2020, 11:12

Revaluation of Intangible Assets

Post by IFRS2020 »

Hi Everyone,

Does anyone have any examples of using indices or suitable model to revalue the intangible assets in accordance with IAS 38?

thanks
pub_acco
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Re: Revaluation of Intangible Assets

Post by pub_acco »

Is that allowed under IAS 38?
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exIFRS
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Re: Revaluation of Intangible Assets

Post by exIFRS »

IAS 38 Paras 81-82: An organisation can revalue intangibles only if the fair value can be determined by reference to an active market (Defined in IFRS 13 Appendix A) for that intangible. The key point is that an active market would preclude the need to use a model or indices, as there needs to be an observable market for the specific intangible.

Very few intangibles will meet this requirement. The standard (para 78) suggests taxi licenses and fishing licenses might meet the requirement. Interestingly it also specifically excludes brands, music, film rights, patents and trademarks as ineligible for revaluation as each is unique. I could imagine that certain emission trading schemes would also be eligible for fair value.

Cryptocurrencies is an interesting discussion, and there has been a lot of discussion about a market not being enough, it has to be active, and genuine, but unless that is specifically relevant to your question, I'll leave it here for now.
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JRSB
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Re: Revaluation of Intangible Assets

Post by JRSB »

Which indice/intangible asset are you thinking of IFRS2020?
"I am always ready to learn although I do not always like being taught" - Churchill
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