Commentary – Intangible assets FRD 109 Intangibles requires all intangible assets to be recognised on a cost basis. Refer to FRD 109 for further details on recognition of intangible assets. Disclosure of amortisation A Health Service shall disclose the line item(s) of the comprehensive operating statement in which any amortisation of intangible assets is included. A Health Service shall also disclose a description, the carrying amount and remaining amortisation period of any individual intangible asset that is material to the financial statements. Impairment of intangible assets Health Services should disclose information on impaired intangible assets in accordance with AASB 136 Impairment of Assets in addition to the information required by AASB 138 Intangible Assets. Internal-use software Capitalisation threshold FRD 109 requires expenditure on intangibles to be capitalised only if the amount involved meets the capitalisation threshold that is material to the Health Service. In addition, a Health Service should consider the following in determining the capitalisation threshold: the impact of the capitalisation threshold on the comprehensive operating statement and balance sheet, taking into consideration the pattern of investment and that an intangible asset may have a relatively short useful life (e.g. useful life of software is usually only 3-5 years); and the administrative burden of conducting annual impairment tests of intangible assets. Research activities AASB 138 Intangible Assets prohibits the recognition of research activities as an asset and requires them to be expensed as incurred. Additional disclosures for intangible assets acquired by way of government grant and initially recognised at fair value For intangible assets acquired by way of a government grant and initially recognised at fair value, a Health Service shall disclose: the fair value initially recognised for these assets; their carrying amount; and whether they are measured after recognition under the cost model or the revaluation model. Additional disclosures for commitments to acquire intangibles The Health Service shall disclose the amount of contractual commitments for the acquisition of intangible assets.
Commentary – Intangible assets FRD 109 Intangibles requires all intangible assets to be recognised on a cost basis. Refer to FRD 109 for further details on recognition of intangible assets. Disclosure of amortisation A Health Service shall disclose the line item(s) of the comprehensive operating statement in which any amortisation of intangible assets is included. A Health Service shall also disclose a description, the carrying amount and remaining amortisation period of any individual intangible asset that is material to the financial statements. Impairment of intangible assets Health Services should disclose information on impaired intangible assets in accordance with AASB 136 Impairment of Assets in addition to the information required by AASB 138 Intangible Assets. Internal-use software Capitalisation threshold FRD 109 requires expenditure on intangibles to be capitalised only if the amount involved meets the capitalisation threshold that is material to the Health Service. In addition, a Health Service should consider the following in determining the capitalisation threshold: the impact of the capitalisation threshold on the comprehensive operating statement and balance sheet, taking into consideration the pattern of investment and that an intangible asset may have a relatively short useful life (e.g. useful life of software is usually only 3-5 years); and the administrative burden of conducting annual impairment tests of intangible assets. Research activities AASB 138 Intangible Assets prohibits the recognition of research activities as an asset and requires them to be expensed as incurred. Additional disclosures for intangible assets acquired by way of government grant and initially recognised at fair value For intangible assets acquired by way of a government grant and initially recognised at fair value, a Health Service shall disclose: the fair value initially recognised for these assets; their carrying amount; and whether they are measured after recognition under the cost model or the revaluation model. Additional disclosures for commitments to acquire intangibles The Health Service shall disclose the amount of contractual commitments for the acquisition of intangible assets.