NIF C-8, “Intangible Assets”, establishes the specific standards for the recognition, valuation, presentation and disclosure of intangible assets in the financial statements.

Some key points of NIF C-8 are:

1. Definition of intangible asset:

It is an identifiable asset, of a non-monetary nature, without physical substance, that generates future economic benefits controlled by an entity.

2. Initial recognition of an intangible asset:

An intangible asset must be recognized in the financial statements when it meets certain criteria that ensure its control and economic value for the entity. These criteria are:

1. Identifiability:

The intangible asset must be identifiable, which means that it must meet at least one of the following conditions:

• Be separable: This implies that the asset can be separated or divided from the entity and sold, transferred, licensed, leased or exchanged, either individually or together with a related contract, asset or liability.

• Arising from legal or contractual rights: Even if those rights are not separable or transferable, the intangible asset may be recognized if it is supported by a contract or a legal right, such as patents, copyrights, franchises, licenses or trademarks.

• Control by the entity:

Control implies that the entity has the ability to obtain future economic benefits derived from the intangible asset and can restrict third parties' access to those benefits.

          c) Future economic benefits:

An intangible asset must generate future economic benefits that contribute to the entity's income. These benefits can come in various forms, such as:

• Increase in income from the sale of products or services.
• Reduction of operating costs.
• Improving production processes.

           d) Reliable cost:

The cost of the intangible asset must be capable of being measured reliably.

3. Initial valuation:

Intangible assets should be initially valued at cost. This includes the acquisition price plus any expenses directly attributable to preparing the asset for use.

4. Shelf life:

NIF C-8 establishes that intangible assets may have a definite or indefinite useful life.

1. Definite shelf life: The asset is amortized over its estimated useful life.
2. Indefinite shelf life: It is not amortized, but is subject to impairment testing annually.

5. Impairment of value:

                If the value of the intangible asset has decreased, an impairment loss should be recognized.

6. Presentation and revelation:

Intangible assets must be presented in the statement of financial position, and details such as the amortization method, useful life and any recognized impairment losses must be disclosed.

Conclusions

This NIF seeks to provide a clear framework for the accounting management of intangible assets, ensuring that they are adequately reflected in the financial statements.