By amending i. 4 of NAS 8 “Intangible Assets”, the Ministry of Finance has defined an intangible asset as a non-monetary asset having no material form, and which can be identified.
Besides, changes have been incorporated to i. 25 of NAS 8 “Intangible Assets”, which prescribe accrual of intangible assets amortization (exclusive of a right of permanent use of a land site) during their useful life period that should be established by an enterprise when an object is recognized as an asset (when being transferred to the balance sheet). The amendments hereby cancel a 20-year limitation at the accrual of intangible assets amortization.
Criteria that should be taken into consideration when determining a useful life period of an intangible asset object, such as: an expected way of the use of an intangible object by an enterprise, dependence of a useful life period of an intangible asset on a useful life period of other enterprise’s assets have also been amended.
The document also specifies that intangible assets with an indefinite useful life period include those to which an enterprise has not established limitation of a period when pecuniary funds (or their equivalents) are to be increased as a result of the use of such intangible assets. In this case intangible assets with an indefinite useful life period will be subject to no amortization being an object of evaluation with regard to availability of signs of indefiniteness of limiting their useful life period. With the absence of such signs, an enterprise should establish a useful life period for such intangible assets.
In addition, NAS 14 “Lease” has also undergone changes. Signs of financial lease have been amended: incomes or expenses from changes of fair value of leased property at the end of the lease period belong to the lessee.
I. 11 of NAS 14 “Lease” has also been amended with a specification that a financial lease asset recognized as that held for sale should be disclosed by the lessor in compliance with NAS 27 “Non-current Assets Held for Sale and Discontinued Operations”.
The Order takes effect staring on January 01, 2009.
By amending i. 4 of NAS 8 “Intangible Assets”, the Ministry of Finance has defined an intangible asset as a non-monetary asset having no material form, and which can be identified.
Besides, changes have been incorporated to i. 25 of NAS 8 “Intangible Assets”, which prescribe accrual of intangible assets amortization (exclusive of a right of permanent use of a land site) during their useful life period that should be established by an enterprise when an object is recognized as an asset (when being transferred to the balance sheet). The amendments hereby cancel a 20-year limitation at the accrual of intangible assets amortization.
Criteria that should be taken into consideration when determining a useful life period of an intangible asset object, such as: an expected way of the use of an intangible object by an enterprise, dependence of a useful life period of an intangible asset on a useful life period of other enterprise’s assets have also been amended.
The document also specifies that intangible assets with an indefinite useful life period include those to which an enterprise has not established limitation of a period when pecuniary funds (or their equivalents) are to be increased as a result of the use of such intangible assets. In this case intangible assets with an indefinite useful life period will be subject to no amortization being an object of evaluation with regard to availability of signs of indefiniteness of limiting their useful life period. With the absence of such signs, an enterprise should establish a useful life period for such intangible assets.
In addition, NAS 14 “Lease” has also undergone changes. Signs of financial lease have been amended: incomes or expenses from changes of fair value of leased property at the end of the lease period belong to the lessee.
I. 11 of NAS 14 “Lease” has also been amended with a specification that a financial lease asset recognized as that held for sale should be disclosed by the lessor in compliance with NAS 27 “Non-current Assets Held for Sale and Discontinued Operations”.
The Order takes effect staring on January 01, 2009.