Lakhasly

Describe the accounting treatments associated with intangible assets IAS 38.The IAS 38 apply to all intangible asset accounting treatment expect to the financial assets, exploration and evaluation assets such as the mineral assets, expenditure that the organization incur in the extraction of the mineral resources, natural gas, oil and other similar resources, the intangible assets earned by the organization as result of insurance contracts received from the insurance companies, intangible assets that are held by the organization for sale including the assets held for the discounted operations.Additionally the subsequent measured involve the cost value or revaluation model and amortization based on the systematic basis based on the life cycle over useful life of the asset unless the cases in which the asset has indefinite life and the organization cannot determine the life span of the asset.The organization should enhance proper accountability to the intangible assets to enhance the process of transparency and to ensure that thew organization meets its required and preserved 5

goals and objectives.In addition IAS 38 standards requires an organization to recognize an asset as intangible if it meets particular criteria (Elshamy et al.,2019).Thus, the organization benefits from the prescribed rights when sold to the other parties.

Describe the accounting treatments associated with intangible assets IAS 38.
The intangible assets include the non physical assets which provide non-monetary assets to the organization and arise from legal rights or contractual benefits. Thus, the organization benefits from the prescribed rights when sold to the other parties. The rights include patent rights and good will. IAS 38 provides for the process that the organization should observe in treatment of the intangible assets. The intangible assets that meet the criteria are measured at their cost value at the initial accounting and recognition. Additionally the subsequent measured involve the cost value or revaluation model and amortization based on the systematic basis based on the life cycle over useful life of the asset unless the cases in which the asset has indefinite life and the organization cannot determine the life span of the asset. In addition IAS 38 standards requires an organization to recognize an asset as intangible if it meets particular criteria (Elshamy et al.,2019). The organization should enhance proper accountability to the intangible assets to enhance the process of transparency and to ensure that thew organization meets its required and preserved
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goals and objectives. In addition the organization should utilize the IAS 38 provided in the International Financial reporting Standards that set out the required measures in the reporting to help the organizations in achieving the desired success . The IAS 38 apply to all intangible asset accounting treatment expect to the financial assets, exploration and evaluation assets such as the mineral assets, expenditure that the organization incur in the extraction of the mineral resources, natural gas, oil and other similar resources, the intangible assets earned by the organization as result of insurance contracts received from the insurance companies, intangible assets that are held by the organization for sale including the assets held for the discounted operations. The organization should have a full ownership to the intangible asset for it to stand a chance of evaluating and recognizing the asset. In addition the intangible assets provides control to the organization in which the organization can determine what will happen to the asset in position. The full control on the asset gives the power to the organization to bargain in the cases of the sale of the asset which includes the powers to bargain on fair deals based on the organization capabilities such as the good will patient rights and monopoly in ownership and control of critical used in production.