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looking for help in (ias-38)
05-06-2010, 03:42 AM,
looking for help in (ias-38)

An entity acquired a number of radio frequency licenses, which it has capitalized in accordance with the requirment of ias-38.

The licenses give the entity contractual right to broad cast
exclusivly on specified radio frequencies for the next ten years.
The licenses can be sold to third parties.

Due to the limited avilability of these licenses, and the commercial
success of the radio stations using those frequencies, management
considers the value of the licenses to be considerably more than
carrying amount and intends to revalue them.

The entity has conducted a valuation using a professional
qualified valuer. (COMMENT).

Zia Ahmad

05-06-2010, 10:19 PM,
As per IAS -38 "fair value shall be determined by reference to an active market. Revaluations shall be made with such regularity that at the end of the reporting period the carrying amount of the asset does not differ materially from its fair value.

It is uncommon for an active market with the characteristics described in paragraph 8 to exist for an intangible asset, although this may happen. For example, in some jurisdictions, an active market may exist for freely transferable taxi licences, fishing licences or production quotas. However, an active market cannot exist for brands, newspaper mastheads, music and film publishing rights, patents or trademarks, because each such asset is unique. Also, although intangible assets are bought and sold, contracts are negotiated between individual buyers and sellers, and transactions are relatively infrequent. For these reasons, the price paid for one asset may not provide sufficient evidence of the fair value of another. Moreover, prices are often not available to the public.
05-07-2010, 12:36 AM,




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