Aasb 138 Intangible Assets

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Regulation is a topic that has been debated for many years and will continue to be debated for years to come. In the business and finance sector, there are many regulators including but not limited to the Australian Securities and Investment Commission (ASIC), Financial Reporting Council (FRC), Australian Prudential Regulation Authority (APRA) and the Australian Accounting Standards Board (AASB). While these are only a few regulatory bodies in the industry, they all have their own set of regulations to enforce. ASIC, for example, regulate the Corporations Act 2001 along with the Australian Accounting Standards. While ASIC ensure that organisations adhere to the regulations laid out before them, the AASB create and develop those standards applicable to Australian entities, reporting to the FRC. When developing standards, there are many issues the AASB need to consider. These include but are not limited to future accounting transactions, the effect on the preparation of financial reports, the future economic detriment of the organisations affected and the expectations of the public. One such standard that has been introduced since the inception of the International Accounting Standards in 01 January 2005 is AASB 138 Intangible Assets which is the Australian standard relating to the International Accounting Standard, IAS 38 Intangible Assets. AASB 138 Intangible Assets is a standard that has been debated since its adoption in 2005, due to the negative effect it has had on the profitability of organisations that are affected by the standard. This paper will explore AASB 138 Intangible Assets in an attempt to establish the issues that arose prior to the standard being implemented and the current stance taken by the AASB. Furthermore, the positive and negative implications that have arisen as a result of the standard being introduced will be investigated, along with any changes in transaction requirements since the adoption of AASB 138 Intangible Assets.


Bibliography: Australian Accounting Standards Board ‘AASB 138 Intangible Assets’, (AASB, 2009) Australian Accounting Standards Board ‘AASB’s GAAP/GFS Convergence Project Advisory Panel Consultation Paper No Australian Accounting Standards Board ‘AASB 1013 Goodwill’ (AASB, 1996) Australian Government ‘Financial Regulation’ (2012) <http://australia.gov.au/topics/economy-money-and-tax/financial-regulation> Coca Cola Amatil ‘Australian Stock Exchange Listing Rules Disclosure Preliminary Final Report’ (CCA, 2005) Craig Deegan ‘Australian Financial Accounting’ 6th ed Craig Deegan ‘Financial Accounting Theory’, 3rd ed. (McGraw Hill, 2011) Dean Ardern and Robert Keys ‘The IASB’s Research Project on Intangible Assets and Goodwill led by the AASB’ (2005) Tom Ravlic ‘The Great Intangible Debate’ (Australian CPA, July 2000) -------------------------------------------- [ 1 ]. Australian Government ‘Financial Regulation’ (2012) . [ 5 ]. Craig Deegan ‘Australian Financial Accounting’ (McGraw Hill, 2010) 249. [ 7 ]. Australian Accounting Standards Board ‘Australian Accounting Standards Board’, (2012) . [ 8 ]. Australian Accounting Standards Board ‘The Standard Setting Process’, (2012) . [ 9 ]. Craig Deegan ‘Financial Accounting Theory’, (McGraw Hill, 2011) 73-75. [ 11 ]. Real Estate Institute of Queensland ‘REIQ Board of Directors’, (2012) . [ 12 ]. Australian Accounting Standards Board ‘The Standard Setting Process’, (2012) . [ 21 ]. Australian Accounting Standards Board ‘AASB 138 Intangible Assets’, (2009) 14. [ 22 ]. Craig Deegan ‘Australian Financial Accounting’ (McGraw Hill, 2010) 249. [ 23 ]. Australian Accounting Standards Board ‘AASB 138 Intangible Assets’, (2009) 9. [ 28 ]. Craig Deegan ‘Australian Financial Accounting’ (McGraw Hill, 2010) 249-252. [ 29 ]. Australian Accounting Standards Board ‘AASB 138 Intangible Assets’, (2009) 20-22. [ 34 ]. Australian Accounting Standards Board ‘AASB 138 Intangible Assets’, (2009) 24. [ 41 ]. Craig Deegan, ‘Australian Financial Accounting’ (McGraw Hill, 2010) 251-253. [ 50 ]. Australian Accounting Standards Board ‘AASB 138 Intangible Assets’, (2009) 22. [ 53 ]. Craig Deegan ‘Financial Accounting Theory’, (McGraw Hill, 2011) 4. [ 54 ]. Dean Ardern and Robert Keys ‘The IASB’s Research Project on Intangible Assets and Goodwill led by the AASB’ (2005) 4-5 [ 55 ] [ 58 ]. Tom Ravlic ‘The Great Intangible Debate’ (Australian CPA, July 2000) 29. [ 59 ]. Jilnaught Wong and Norman Wong ‘The Impact of Not Amortizing Intangible Assets on Valuation Multiples’ (Pacific Accounting Review, June 2005) 80-81. [ 60 ]. Tom Ravlic ‘The Great Intangible Debate’ (Australian CPA, July 2000) 29. [ 61 ]. Craig Deegan, ‘Australian Financial Accounting’ (McGraw Hill, 2010) 285. [ 63 ]. Coca Cola Amatil ‘Australian Stock Exchange Listing Rules Disclosure Preliminary Final Report’ (2005) 18. [ 65 ]. Craig Deegan, ‘Australian Financial Accounting’ (McGraw Hill, 2010) 251-253. [ 66 ]. Coca Cola Amatil ‘Australian Stock Exchange Listing Rules Disclosure Preliminary Final Report’ (2005) 27. [ 67 ]. Craig Deegan, ‘Australian Financial Accounting’ (McGraw Hill, 2010) 280.

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