Aasb 138 Intangible Assets
Regulation is a topic that has been debated for many years and will continue to be debated for years to come. In the business and finance sector, there are many regulators including but not limited to the Australian Securities and Investment Commission (ASIC), Financial Reporting Council (FRC), Australian Prudential Regulation Authority (APRA) and the Australian Accounting Standards Board (AASB). While these are only a few regulatory bodies in the industry, they all have their own set of regulations to enforce. ASIC, for example, regulate the Corporations Act 2001 along with the Australian Accounting Standards. While ASIC ensure that organisations adhere to the regulations laid out before them, the AASB create and develop those standards applicable to Australian entities, reporting to the FRC. When developing standards, there are many issues the AASB need to consider. These include but are not limited to future accounting transactions, the effect on the preparation of financial reports, the future economic detriment of the organisations affected and the expectations of the public. One such standard that has been introduced since the inception of the International Accounting Standards in 01 January 2005 is AASB 138 Intangible Assets which is the Australian standard relating to the International Accounting Standard, IAS 38 Intangible Assets. AASB 138 Intangible Assets is a standard that has been debated since its adoption in 2005, due to the negative effect it has had on the profitability of organisations that are affected by the standard. This paper will explore AASB 138 Intangible Assets in an attempt to establish the issues that arose prior to the standard being implemented and the current stance taken by the AASB. Furthermore, the positive and negative implications that have arisen as a result of the standard being introduced will be investigated, along with any changes in transaction requirements since the adoption of AASB 138 Intangible Assets.
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