Chapter 12


Sec. 1. Scope. This Chapter covers accounting treatment, recognition, measurement, as well as, the presentation and disclosure requirements in reporting intangible assets.

Sec. 2. Definitions. For the purpose of this Manual, the terms used as stated below shall be construed to mean as follows:

a Active Market - is a market in which all the following conditions exist: 1) the items traded in the market are homogeneous, 2) willing buyers and sellers can normally be found at any time; and 3) prices are available to the public.

b Amortization - is the systematic allocation of the depreciable amount of an intangible asset over its useful life.

c Development - is the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems, or services before the start of commercial production or use.

d Intangible Assets - are identifiable non-monetary asset without physical substance.

e Intangible Heritage Assets - are intangible assets which displayed the following characteristics:

1. Their value in cultural, environmental and historical terms is unlikely to be fully reflected in a financial value based purely on a market price;

2. Legal and/or statutory obligations may impose prohibitions or severe restrictions on disposal by sale;

3. Their value may increase over time; and

4. It may be difficult to estimate their useful lives, which in some cases could be several hundred years.

f Research - is original and planned investigation undertaken with the prospect of gaining new scientific and technical knowledge and understanding?

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