Cryptocurrency and IAS 38: Difference between pages
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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. | |||
Certain defined types of costs - including training costs - must always be charged to expense when they are incurred. | |||
The treatment under IFRS results in a greater proportion of costs being capitalised, compared with US GAAP - under which most research and development costs are expensed, with limited exceptions including certain software expenditure. | |||
== See also == | == See also == | ||
* [[ | * [[Capitalise]] | ||
* [[ | * [[Development]] | ||
* [[ | * [[Expense]] | ||
* [[ | * [[FRS 102]] | ||
* [[ | * [[IAS 16]] | ||
* [[ | * [[Intangible assets]] | ||
* [[ | * [[International Financial Reporting Standards]] (IFRS) | ||
* [[ | * [[Recognition]] | ||
* [[Research & development]] | |||
* [[US GAAP]] | |||
== Other resources == | |||
[ | *[https://www.iasplus.com/en/standards/ias/ias38 IAS 38 - IAS Plus] | ||
*[https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards/english/2021/issued/part-a/ias-38-intangible-assets.pdf IAS 38 text - IFRS] | |||
[[Category: | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Compliance_and_audit]] | |||
Revision as of 16:13, 17 April 2023
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.
Certain defined types of costs - including training costs - must always be charged to expense when they are incurred.
The treatment under IFRS results in a greater proportion of costs being capitalised, compared with US GAAP - under which most research and development costs are expensed, with limited exceptions including certain software expenditure.
See also
- Capitalise
- Development
- Expense
- FRS 102
- IAS 16
- Intangible assets
- International Financial Reporting Standards (IFRS)
- Recognition
- Research & development
- US GAAP
