Intangible Assets under IFRS for SMEs

Intangible assets are non-monetary assets without physical substance that are identifiable and controlled by an entity. Under IFRS for SMEs, such assets are recognised when they are identifiable, controlled by the entity, and expected to generate future economic benefits. The standard mandates initial measurement at cost and subsequent measurement using the cost model, with amortisation applied to assets with finite useful lives. Impairment testing is required when indicators of impairment exist, ensuring assets are not carried at more than their recoverable amount. Practical examples in R currency illustrate how SMEs can apply these principles in real-world financial reporting.