Intangible assets note in the Annual Report

Intangible assets note is like property, plant and equipment one really. It’s presented as reflecting movements for both current and prior period and similarly also for subgroups of intangible assets. The groups themselves obviously differ and are mostly something you can come up with on your own depending on your assets (i.e. “software”, “trademarks” etc.). The way the note is build up is also having the subgroups as columns in which brought forward balances are followed by movements and ending in carried forward balances. 

The balances always shown for each of the subgroup are the cost value, accumulated depreciation and carrying value (cost value less accumulated depreciation). They are the brought and carried forward balances we’re talking about.

The movements (and their effect), which usually are present, are as follows:

  • Additions – increase the cost value of the subgroup the asset was added to;
  • Depreciation charge – increases accumulated depreciation of the subgroup the expense is charged;
  • Write-offs and sales – decrease the cost value of the subgroup the asset was in by the amount the asset’s cost value was and decrease accumulated depreciation of the subgroup by the amount the asset’s accumulated depreciation was.

As with PPE note you should disclose the sales price of any sold assets (just the total for all sold assets and not separately). If it’s not significant or no sales were made it’s not worth it, but if you’ve made a considerable sale, it’s suggested to disclose this information as well. Also, if you’ve got unpaid balances for any items at the balance sheet date that are significant it’s also suggested to disclose the amount of those unpaid balances in this note.

In case your company holds any specific assets like trademarks it’s recommended to disclose a bit more information about them – in case of trademarks for an example their name and how the company uses it etc. Nothing long or detailed, but a short description of what the asset is.

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