Biosensors
Biosensors: Accounting for Goodwill and Intangibles
(1) Intangible assets acquired from JW Medical Systems (JWMS) comprise patent costs, customer relationships and land use rights. In accordance with IFRS 3 Business Combinations, Biosensors International Group (BIG) measured the cost of the acquired intangible assets as their fair value at acquisition date. According to IFRS 3.14 Business Combinations, guidance for recognition of intangible assets is in paragraphs B31-B40. Apart from goodwill, identifiable intangible assets acquired are recognised if it satisfies the separability or contractual-legal criterion [IFRS 3.B31].
Measurement after recognition
After initial recognition, BIG needs to account for acquired intangible assets according to IAS 38 Intangible Assets [IFRS 3.B39]. According to IAS 38.35 Intangible Assets, if acquired intangible assets is separable or arises from legal or contractual rights, sufficient information exists to measure fair value reliably. Following initial acquisition, BIG can adopt either the cost or revaluation model as its accounting policy [IAS38.72]. BIG adopted the cost model whereby intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses [IAS 38.74].
Impairment of Assets
At the end of each reporting period, BIG assessed for indication that an intangible asset may be impaired in accordance to IAS 36 Impairment of Assets. An impairment loss shall be recognised immediately in profit or loss if the recoverable amount of the intangible asset is less than its carrying amount according to SFRS 36.59.
Amortisation period and method
In accordance to IAS 38.104, BIG reviewed the amortisation period and the amortisation method for the acquired intangible assets at least at each balance sheet date. The amortisation period or method is altered according to changes in expected useful life or consumption of future economic benefits of the asset accordingly and is considered
(1) Intangible assets acquired from JW Medical Systems (JWMS) comprise patent costs, customer relationships and land use rights. In accordance with IFRS 3 Business Combinations, Biosensors International Group (BIG) measured the cost of the acquired intangible assets as their fair value at acquisition date. According to IFRS 3.14 Business Combinations, guidance for recognition of intangible assets is in paragraphs B31-B40. Apart from goodwill, identifiable intangible assets acquired are recognised if it satisfies the separability or contractual-legal criterion [IFRS 3.B31].
Measurement after recognition
After initial recognition, BIG needs to account for acquired intangible assets according to IAS 38 Intangible Assets [IFRS 3.B39]. According to IAS 38.35 Intangible Assets, if acquired intangible assets is separable or arises from legal or contractual rights, sufficient information exists to measure fair value reliably. Following initial acquisition, BIG can adopt either the cost or revaluation model as its accounting policy [IAS38.72]. BIG adopted the cost model whereby intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses [IAS 38.74].
Impairment of Assets
At the end of each reporting period, BIG assessed for indication that an intangible asset may be impaired in accordance to IAS 36 Impairment of Assets. An impairment loss shall be recognised immediately in profit or loss if the recoverable amount of the intangible asset is less than its carrying amount according to SFRS 36.59.
Amortisation period and method
In accordance to IAS 38.104, BIG reviewed the amortisation period and the amortisation method for the acquired intangible assets at least at each balance sheet date. The amortisation period or method is altered according to changes in expected useful life or consumption of future economic benefits of the asset accordingly and is considered