The objective of IAS 38 is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Standard. For example, it does not apply to: (a) intangible assets held by an entity for sale in the ordinary course of business (see IAS 2, Inventories, and IAS 11, Construction contracts);
(b) deferred tax assets (see IAS 12, Income taxes); (c) leases that fall within the scope of IAS 17, Leases;
(d) financial assets as defined in IAS 32, Financial instruments: disclosure and presentation.
An intangible asset is an identifiable non-monetary asset without physical substance Monetary assets are money held and assets to be received in fixed or determinable amounts of money.
An asset is a resource:
(a) controlled by an entity as a result of past events; and
(b) from which future economic benefits are expected to flow to the entity.
Identifiability - separable: capable of being separated or divided from the entity
Control: the entity has the power to obtain future economic benefits and can restrict the acces of others to those benefits
Future economic benefits: existance of future economic benefits
