IAS 38

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:

1. The technical feasibility of completing the intangible asset (so that it will be available for use or sale); and
2. Intention to complete and use or sell the asset; and
3. Ability to use or sell the asset; and
4. Existence of a market or, if to be used internally, the usefulness of the asset; and
5. 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
• Expense
• FRS 102
• IAS 16
• Intangible assets
• International Financial Reporting Standards
• Recognition
• Research & development