ScopeScope

Scope

2 This Standard shall be applied in accounting for intangible assets, except:

(a) intangible assets that are within the scope of another Australian Accounting Standard;

(b) financial assets, as defined in AASB 132 Financial Instruments: Presentation;

(c) the recognition and measurement of exploration and evaluation assets (see AASB 6 Exploration for and Evaluation of Mineral Resources); and

(d) expenditure on the development and extraction of minerals, oil, natural gas and similar non-regenerative resources.

3 If another Standard prescribes the accounting for a specific type of intangible asset, an entity applies that Standard instead of this Standard. For example, this Standard does not apply to:

(a) intangible assets held by an entity for sale in the ordinary course of business (see AASB 102 Inventories);

(b) deferred tax assets (see AASB 112 Income Taxes);

(c) leases that are within the scope of AASB 117 Leases;

(d) assets arising from employee benefits (see AASB 119 Employee Benefits);

(e) financial assets as defined in AASB 132. The recognition and measurement of some financial assets are covered by AASB 10 Consolidated Financial Statements, AASB 127 Separate Financial Statements and AASB 128 Investments in Associates and Joint Ventures;

(f) goodwill acquired in a business combination (see AASB 3 Business Combinations);

(g) deferred acquisition costs, and intangible assets, arising from an insurer’s contractual rights under insurance contracts within the scope of AASB 4 Insurance Contracts. AASB 4 sets out specific disclosure requirements for those deferred acquisition costs but not for those intangible assets. Therefore, the disclosure requirements in this Standard apply to those intangible assets; and

(h) non-current intangible assets classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations.

(i) assets arising from contracts with customers that are recognised in accordance with AASB 15 Revenue from Contracts with Customers.

4 Some intangible assets may be contained in or on a physical substance such as a compact disc (in the case of computer software), legal documentation (in the case of a licence or patent) or film. In determining whether an asset that incorporates both intangible and tangible elements should be treated under AASB 116 Property, Plant and Equipment or as an intangible asset under this Standard, an entity uses judgement to assess which element is more significant. For example, computer software for a computer-controlled machine tool that cannot operate without that specific software is an integral part of the related hardware and it is treated as property, plant and equipment. The same applies to the operating system of a computer. When the software is not an integral part of the related hardware, computer software is treated as an intangible asset.