IAS 38: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add criteria. Source: ACCA webpage https://www.accaglobal.com/ca/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/technical-articles/rd.html) |
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Issued by the International Accounting Standards Board. | Issued by the International Accounting Standards Board. | ||
The criteria for recognising an asset 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] | |||
* [[Expense]] | |||
* [[FRS 102]] | * [[FRS 102]] | ||
* [[IAS 16]] | * [[IAS 16]] | ||
* [[Intangible assets]] | * [[Intangible assets]] | ||
* [[International Financial Reporting Standards]] | * [[International Financial Reporting Standards]] | ||
* [[Recognition]] | |||
* [[Research & development]] | * [[Research & development]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Compliance_and_audit]] | [[Category:Compliance_and_audit]] | ||
Revision as of 22:53, 24 June 2021
International Accounting Standard 38, dealing with intangible assets.
Issued by the International Accounting Standards Board.
The criteria for recognising an asset 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.
