Compiled AASB 138 (Jun 2010)

1 Compiled aasb Standard RDR Early Application Only aasb 138 Intangible Assets This Compiled Standard applies to annual reporting periods beginning on or after 1 July 2009 with early application of the Reduced Disclosure Requirements (RDR). It incorporates relevant amendments made up to and including 30 June 2010. RDR amendments cannot be applied to periods beginning before 1 July 2009. Prepared on 3 August 2010 by the staff of the Australian Accounting Standards Board. aasb 138- Compiled RDR early application only 2 COPYRIGHT Obtaining Copies of Accounting Standards Compiled versions of Standards, original Standards and amending Standards (see Compilation Details) are available on the aasb website: Printed copies of original Standards and amending Standards are available for purchase by contacting: The Customer Service Officer Australian Accounting Standards Board Level 7 600 Bourke Street Melbourne Victoria AUSTRALIA Postal address: PO Box 204 Collins Street West Victoria 8007 AUSTRALIA Phone: (03) 9617 7637 Fax: (03) 9617 7608 E-mail: Website: Other Enquiries Phone: (03) 9617 7600 Fax: (03) 9617 7608 E-mail.

2 COPYRIGHT 2010 Commonwealth of Australia This Compiled aasb Standard contains International Accounting Standards Committee Foundation copyright material. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source. Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to The Director of Finance and Administration, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007. All existing rights in this material are reserved outside Australia. Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only.

3 Further information and requests for authorisation to reproduce for commercial purposes outside Australia should be addressed to the International Accounting Standards Committee Foundation at aasb 138- Compiled RDR early application only 3 CONTENTS CONTENTS COMPILATION DETAILS COMPARISON WITH IAS 38 ACCOUNTING STANDARD aasb 138 INTANGIBLE ASSETS Paragraphs Objective 1 Application Reduced Disclosure Requirements Scope 2 7 Definitions 8 Intangible Assets 9 10 Identifiability 11 12 Control 13 16 Future Economic Benefits 17 Recognition and Measurement 18 Separate Acquisition 25 32 Acquisition as Part of a Business Combination 33 34 Measuring the Fair Value of an Intangible Asset Acquired in a Business Combination 35 41 Subsequent Expenditure on an Acquired In-process Research and Development Project 42 43 Acquisition by way of a Government Grant 44 Exchanges of Assets 45 47 Internally Generated Goodwill 48 50 Internally Generated Intangible Assets 51 53 Research Phase 54 56 Development Phase 57 64 Cost of an Internally Generated Intangible Asset 65 67 Recognition of an Expense 68 70 Past Expenses not to be Recognised as an Asset 71 Measurement after Recognition 72 73 Cost Model 74 Revaluation Model 75 87 aasb 138- Compiled RDR early application only 4 CONTENTS Useful Life 88 96 Intangible Assets with Finite Useful Lives Amortisation Period and Amortisation Method 97 99 Residual Value 100 103 Review of

4 Amortisation Period and Amortisation Method 104 106 Intangible Assets with Indefinite Useful Lives 107 108 Review of Useful Life Assessment 109 110 Recoverability of the Carrying Amount Impairment Losses 111 Retirements and Disposals 112 117 Disclosure General 118 123 Intangible Assets Measured after Recognition using the Revaluation Model 124 125 Research and Development Expenditure 126 127 Other Information 128 Transitional Provisions and Effective Date 130C 130E ILLUSTRATIVE EXAMPLES Assessing the Useful Lives of Intangible Assets Page 48 BASIS FOR CONCLUSIONS ON IAS 38 (available on the aasb website) Australian Accounting Standard aasb 138 Intangible Assets (as amended) is set out in paragraphs 1 130E. All the paragraphs have equal authority.

5 Terms defined in this Standard are in italics the first time they appear in the Standard. aasb 138 is to be read in the context of other Australian Accounting Standards, including aasb 1048 Interpretation and Application of Standards, which identifies the Australian Accounting Interpretations. In the absence of explicit guidance, aasb 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies. aasb 138- Compiled RDR early application only 5 COMPILATION DETAILS COMPILATION DETAILS Accounting Standard aasb 138 Intangible Assets as amended RDR Early Application Only This Compiled Standard applies to annual reporting periods beginning on or after 1 July 2009 with early application of the Reduced Disclosure Requirements.

6 It takes into account amendments up to and including 30 June 2010 and was prepared on 3 August 2010 by the staff of the Australian Accounting Standards Board ( aasb ). This compilation is not a separate Accounting Standard made by the aasb . Instead, it is a representation of aasb 138 (July 2004) as amended by other Accounting Standards, which are listed in the Table below. Table of Standards Standard Date made Application date (annual reporting periods .. on or after ..) Application, saving or transitional provisions aasb 138 15 Jul 2004 (beginning) 1 Jan 2005 aasb 2004-1 9 Dec 2004 (beginning) 1 Jan 2005 aasb 2007-4 30 Apr 2007 (beginning) 1 Jul 2007 see (a) below aasb 2007-6 14 Jun 2007 (beginning) 1 Jan 2009 see (b) below aasb 2007-8 24 Sep 2007 (beginning) 1 Jan 2009 see (c) below aasb 2007-10 13 Dec 2007 (beginning) 1 Jan 2009 see (c) below aasb 2008-3 6 Mar 2008 (beginning) 1 Jul 2009 see (d) below aasb 2008-5 24 Jul 2008 (beginning) 1 Jan 2009 see (e) below aasb 2009-4 21 May 2009 (beginning) 1 Jul 2009 see (f) below aasb 2009-6 25 Jun 2009 (beginning) 1 Jan 2009 and (ending) 30 Jun 2009 see (g) below aasb 2010-2 30 Jun 2010 (beginning) 1 Jul 2013 see (h) below (a)

7 Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 July 2007. (b) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2009, provided that aasb 123 Borrowing Costs (June 2007) is also applied to such periods. (c) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2009, provided that aasb 101 Presentation of Financial Statements (September 2007) is also applied to such periods. aasb 138- Compiled RDR early application only 6 COMPILATION DETAILS (d) Entities may elect to apply this Standard to annual reporting periods beginning on or after 30 June 2007 but before 1 July 2009, provided that aasb 3 Business Combinations (March 2008) and aasb 127 Consolidated and Separate Financial Statements (March 2008) are also applied to such periods.

8 (e) Entities may elect to apply this Standard, or its amendments to individual Standards, to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2009. (f) Entities may elect to apply this Standard, or its amendments to individual pronouncements, to annual reporting periods beginning on or after 1 January 2005 but before 1 July 2009. (g) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2009, provided that aasb 101 Presentation of Financial Statements (September 2007) is also applied to such periods, and to annual reporting periods beginning on or after 1 January 2009 that end before 30 June 2009. (h) Entities may elect to apply this Standard (the RDR amendments) to annual reporting periods beginning on or after 1 July 2009 but before 1 July 2013, provided that aasb 1053 Application of Tiers of Australian Accounting Standards is also applied to such periods.

9 Table of Amendments to Standard Paragraph affected How affected By .. [paragraph] amended aasb 2007-8 [7, 8] amended aasb 2007-8 [8] (and preceding heading) added aasb 2010-2 [44] 2 amended amended aasb 2004-1 [8] aasb 2007-4 [99] 3 amended aasb 2007-4 [99] 8 amended amended aasb 2007-8 [6] aasb 2008-3 [70] 11 amended amended aasb 2007-10 [89] aasb 2008-3 [71] 12 amended aasb 2008-3 [71] 25 amended aasb 2008-3 [71] 28 amended aasb 2007-4 [99] 32 amended aasb 2007-6 [15] 33 amended amended aasb 2007-4 [99] aasb 2008-3 [71] 34-35 amended aasb 2008-3 [71] 36-37 amended aasb 2009-4 [10] 38 deleted aasb 2008-3 [72] 40-41 amended aasb 2009-4 [10] 44 amended aasb 2007-4 [98] aasb 138- Compiled RDR early application only 7 COMPILATION DETAILS Paragraph affected How affected By.

10 [paragraph] 66 amended aasb 2007-4 [99] 67 (Example) amended aasb 2007-8 [6] 68 amended amended aasb 2007-4 [99] aasb 2008-3 [73] 69 amended amended amended aasb 2007-4 [99] aasb 2008-5 [60] aasb 2008-3 [73] 69A added aasb 2008-5 [61] 70 amended aasb 2008-5 [60] 73 amended aasb 2007-10 [89] 75 amended aasb 2007-8 [6] 83 amended aasb 2007-4 [99] 85 amended aasb 2007-8 [123] amended aasb 2009-6 [85] 86 amended aasb 2007-8 [123] amended aasb 2009-6 [86] 87 amended amended aasb 2007-8 [124] aasb 2009-6 [87] 94 amended aasb 2008-3 [74] 97 amended aasb 2007-4 [99] 98 amended aasb 2008-5 [60] 108 amended aasb 2007-4 [99] 109 amended aasb 2007-4 [99] 113 amended aasb 2007-4 [99] 115A added aasb 2008-3 [75] 118 amended aasb 2007-8 [6, 125] added aasb 2010-2 [44] 119 amended aasb 2007-10 [89]