11.6 IFRS/ASPE Key Differences
| Asset Type | ASPE (Sec. 3064) | IFRS (IAS 38) |
|---|---|---|
| Intangible assets: internally developed | Those development costs meeting ALL the six criteria in the development phase may be capitalized or expensed. | Costs are separated into research and development. All research costs are expensed. Those development costs meeting ALL the six criteria in the development phase are to be capitalized:
|
| Intangible assets: subsequent measurement | Cost model: measured at cost less accumulated amortization (definite-life assets only) and impairment losses since acquisition. | Policy choice to use either cost model (usually) or revaluation model (only if an active market exists). |
| Intangible assets: impairment | For definite-life intangible assets: if the carrying value is greater than the undiscounted future cash flows, then asset is impaired. The impairment loss is calculated as the difference between the carrying value and fair value.For indefinite-life intangible assets: if carrying value is greater than fair value then asset is impaired for that amount.Impairment is not reversible. |
For both definite-life and indefinite-life intangible assets:
1) Calculate the recoverable amount as the higher of the value in use and the fair value less costs to sell. 2) If the asset carrying value is more than the recoverable amount, then the asset is impaired by the difference between these two amounts. Impairment is reversible but the amount is limited to the asset’s carrying value had no impairment occurred. |
| Disclosure of intangible assets and goodwill | Basic disclosures are required such as reporting intangible assets by class with details about amortization policy and impairment losses. Goodwill impairment details also disclosed. | Detailed disclosures are required for intangibles and goodwill. For each class, identify amortization policy, impairment losses, reconciliation of opening to closing balances details, and capitalization policies. Disclose research and development costs that were expensed. |
(Sources: CPA Canada, 2016; IFRS, 2014)
