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Difference between AS 26 and Ind AS 38

Open uri20170510 32134 1ue0f38?1494421710 rohit agarwal asked about 3 years ago

What is the Difference between AS 26 and Ind AS 38 Intangible Assets

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Anshul Dhawan commented over 1 year ago

AS 26 is based on IAS 38 (issued 1998). IASB, as a part of its project on Business Combinations, has revised IAS 38.These revisions to IAS 38 would be looked into by the ASB with the issuance of the Accounting Standard on Business Combinations. Following are the major differences between AS 26 and IAS 38: Conceptual Differences 1. An intangible asset is defined as an identifiable non monetary asset, without physical substance, held for use in the production or supply of goods or services, for rental to others, or for administrative purposes whereas IAS 38 defines an intangible asset ‘as an identifiable non-monetary asset without physical substance’. 2. AS 26 is based on the assumption that the useful life of the intangible asset is always definite. In regard to assets with definite life also there is a rebuttal presumption that the useful life of an intangible asset will not exceed ten years 54 from the date when the asset is available for use. Whereas IAS 36 recognises that an intangible asset may have an indefinite life. In respect of intangible assets having a definite life, the Standard does not contain rebuttal presumption about their useful life.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Aparajit Awasthi answered about 3 years ago

AS 26 is based on IAS 38 (issued 1998). IASB, as a part of its project on Business Combinations, has revised IAS 38.These revisions to IAS 38 would be looked into by the ASB with the issuance of the Accounting Standard on Business Combinations. Following are the major differences between AS 26 and IAS 38: Conceptual Differences 1. An intangible asset is defined as an identifiable non monetary asset, without physical substance, held for use in the production or supply of goods or services, for rental to others, or for administrative purposes whereas IAS 38 defines an intangible asset ‘as an identifiable non-monetary asset without physical substance’. 2. AS 26 is based on the assumption that the useful life of the intangible asset is always definite. In regard to assets with definite life also there is a rebuttal presumption that the useful life of an intangible asset will not exceed ten years 54 from the date when the asset is available for use. Whereas IAS 36 recognises that an intangible asset may have an indefinite life. In respect of intangible assets having a definite life, the Standard does not contain rebuttal presumption about their useful life. 3. As per AS 26 if control over the future economic benefits from an intangible asset is achieved through legal rights that have been granted for a finite period, it is required that the useful life of the intangible asset should not exceed the period of the legal rights unless: (a) the legal rights are renewable; and (b) renewal is virtually certain. However, IAS 38 requires ‘evidence to support renewal’ instead of virtual certainty for renewal.

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