IAS 38: Difference between revisions
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Issued by the International Accounting Standards Board. | Issued by the International Accounting Standards Board. | ||
IAS 38 requires an entity to recognise an intangible asset, whether purchased or self-created (at cost) if, and only if: | |||
*It is probable that the future economic benefits that are attributable to the asset will flow to the entity; and | |||
*The cost of the asset can be measured reliably. | |||
The criteria for recognising internal development costs as (self-created) assets under IAS 38 include all of: | |||
#The technical '''feasibility''' of completing the intangible asset (so that it will be available for use or sale); and | |||
#'''Intention''' to complete and use or sell the asset; and | |||
#'''Ability''' to use or sell the asset; and | |||
#Existence of a '''market''' or, if to be used internally, the '''usefulness''' of the asset; and | |||
#Availability of '''adequate''' technical, financial, and other '''resources''' to complete the asset. | |||
If any of these criteria is '''not''' met, then the expenditure is a cost, and not an asset. | |||
== See also == | == See also == | ||
* [[Capitalise]] | |||
* [[Development]] | |||
* [[Expense]] | |||
* [[FRS 102]] | * [[FRS 102]] | ||
* [[IAS 16]] | * [[IAS 16]] | ||
* [[Intangible assets]] | * [[Intangible assets]] | ||
* [[International Financial Reporting Standards]] | * [[International Financial Reporting Standards]] | ||
* [[Recognition]] | |||
* [[Research & development]] | |||
== External link == | |||
*[https://www.iasplus.com/en/standards/ias/ias38 IAS 38 - IAS Plus] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Compliance_and_audit]] | [[Category:Compliance_and_audit]] | ||
Revision as of 13:55, 22 March 2022
International Accounting Standard 38, dealing with intangible assets.
Issued by the International Accounting Standards Board.
IAS 38 requires an entity to recognise an intangible asset, whether purchased or self-created (at cost) if, and only if:
- It is probable that the future economic benefits that are attributable to the asset will flow to the entity; and
- The cost of the asset can be measured reliably.
The criteria for recognising internal development costs as (self-created) assets under IAS 38 include all of:
- The technical feasibility of completing the intangible asset (so that it will be available for use or sale); and
- Intention to complete and use or sell the asset; and
- Ability to use or sell the asset; and
- Existence of a market or, if to be used internally, the usefulness of the asset; and
- Availability of adequate technical, financial, and other resources to complete the asset.
If any of these criteria is not met, then the expenditure is a cost, and not an asset.
See also
- Capitalise
- Development
- Expense
- FRS 102
- IAS 16
- Intangible assets
- International Financial Reporting Standards
- Recognition
- Research & development
