Application of revaluation model to intangible assets that are partially recognised or received by way of government grant
Entity C spent ¥12,000,000 in preparing its application for a number of taxi licences, which it expensed because of the uncertain outcome of the process. The application was successful and C was granted a number of freely transferable taxi licences and paid a nominal registration fee of ¥50,000, which it recognised as an asset. There is an active and liquid market in these taxi licences.
C can apply the revaluation model under IAS 38 to these taxi licences, because it previously recognised the licence (even if it only recognised part of the costs as an asset) and there is an active market in these licences.
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Entity D obtained a number of freely transferable fishing quotas free of charge, which it recognised at a nominal amount as permitted under IAS 20. There is an active and liquid market in these quotas.
D can apply the revaluation model under IAS 38 to these fishing quotas, because it previously recognised the quota (even if it only recognised it at a nominal amount) and there is an active market in these quotas.