Intangible assets comprise acquisition costs and internally generated development costs related to cutting-edge technology BBQ's. The first product is an outdoor cooking device known as the SmartBBQ.
Intangible assets are initially recorded at cost and are subsequently stated at cost less any accumulated amortisation and impairment losses.
The cost includes the acquisition of the initial concept development of the SmartBBQ, which included 2D and 3D computer aided design and the initial product design for prototype. The cost of internally generated assets includes directly attributable costs of labour necessary to generate the asset as well as related professional fees regarding the granting of a patent. The patent relates to the ability to control the temperature and rotation of food holders based on the weight of food.
Intangible assets are amortised from the date they are available for use. Amortisation is charged to the Income Statement on a straight-line basis over the estimated useful life of the intangible asset, which is 20 years. Intangible assets with an indefinite useful life are tested for impairment annually. Amortisation periods and methods are reviewed annually and adjusted if appropriate.
Any intangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.