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Chapter 30
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Intangible Assets (lAS 38)
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• Amortization recognized during the peri od
• Net exc hange difference s on retranslation
• Oth er changes during the peri od
• For asset s with indefinite useful lives, the carrying amount of the asset and the reasons sup–
porting such an assessment
• Description, carrying amo unt, and rem aining amo rtiza tion peri od of any intang ible ass ets that
are materi al to the entity' s financial statements
• Th e existence and ca rry ing amo unts of intang ible assets whose tile is restricted or pledged as
sec urity for liabilities
• Contractual commitments fo r the acquisition of intan gible assets
• Intangible ass ets acquired by way of governme nt grant and initiall y recogni zed at fair va lue,
including their fair va lues, their ca rry ing amo unts, and whether subse que ntly carried und er
the cost or revaluation model
• The amo unt of research and development expenditure expensed during the period
14.2 If intangib le assets are stated at revalu ed amounts, then these po int s are to be disclosed:
• For each cla ss of asset
• The effective date of revaluation
• The carrying amount
• The carrying amount that wo uld have bee n recognized had the cos t model been used
• The revaluation surp lus that relates to intangible assets at the begi nning and end of the pe–
riod, indicating changes during the period and any restrictions on distributions to shareho ld–
ers
• The methods and significa nt ass umptions used in estimating fair values
14.3 In add ition to the pre ceding discl osur es, entities are en couraged to d iscl ose the de scription
of any fully amortized intangibl e assets that are still in use and of any signific ant intangible assets
co ntro lled by the entity but are not recogni zed as asse ts as the y failed to meet the recognition crite–
ria.
15.
EXTRACTS FROM PUBLISHED FINANCIAL STATEMENTS
15.1 BASF, Annual Report 2006
Notes to the Financial Statements
Accounting Policies
Intern ally genera ted int an gible assets . Internally generated intangible assets are primarily com–
prised of internally developed software. Such software as well as other internally generated assets for
internal use are valued at cost and amortized over their useful lives. Impairments are recorded if the
carrying amount of an asset exceeds the recoverable amount.
Development costs also include, in addition to those costs directly attributable to the development
of the asset, an appropriate allocation of overhead cost. Borrowing costs are capitalized to the extent
that they are material and related to the period over which the asset is generated.
The average amortization period for intangible assets with definite useful lives is ten years for
2006 and nine years for 2005 based on the following expected useful lives:
Amortization peri ods in years
Distribution and similar rights
2-20
Product rights. licenses, and trademarks
2-30
Know-how, patents. and production technologies
3-25
Internally generated intangible assets
3-5
Other rights and values
2- 20