China CAS vs IFRS-INTANGIBLE ASSETS(中国会计准则对比国际财务报告准则-无形资产).ppt

China CAS vs IFRS INTANGIBLE ASSETS Scope - customer relationships FRS38 In the absence of legal rights to protect customer relationships, exchange transactions for the same or similar non-contractual customer relationships (other than as part of a business combination) provide evidence that the entity is nonetheless able to control the expected future economic benefits flowing from the customer relationships. Because such exchange transactions also provide evidence that the customer relationships are separable, those customer relationships meet the definition of an intangible asset. Scope - customer relationships CAS6 An entity usually has insufficient control over the expected economic benefits from customer relationships and human resource to meet the definition of intangible assets. Land use right FRS38 For a lease of land, a characteristic of land is that it normally has an indefinite economic life and, if title is not expected to pass to the lessee by the end of the lease term, the lessee normal does not receive substantially all of the risks and rewards incidental to ownership. Accordingly, the lease of land will be an operating lease. A payment made on entering into or acquiring a leasehold that is accounted for as an operating lease represents prepaid lease payments. Land use right CAS6 An enterprise shall usually recognise the land use rights acquired as intangible assets. Subsequent measurement FRS38 Either the cost model or the revaluation model may be chosen. However, whichever model chosen shall be applied consistently to the entire class of intangible assets. Subsequent measurement CAS6 The revaluation model set out in “FRS 38-Intangible Assets” is not addressed. Reversal of an impairment loss FRS38 An impairment loss recognised in prior periods for an asset other than goodwill shall be reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised