imported>Doug Williamson |
imported>Administrator |
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| International Accounting Standard 38, dealing with intangible assets. | | International Accounting Standard 39, dealing with financial instruments: recognition and measurement. |
| | | To be superseded in due course by IFRS 9 'Financial Instruments'. |
| Issued by the International Accounting Standards Board.
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| IAS 38 requires an entity to recognise an intangible asset, whether purchased or self-created (at cost) if, and only if:
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| *It is probable that the future economic benefits that are attributable to the asset will flow to the entity; and
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| *The cost of the asset can be measured reliably.
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| The criteria for recognising internal development costs as (self-created) assets under IAS 38 include all of:
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| #The technical '''feasibility''' of completing the intangible asset (so that it will be available for use or sale); and
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| #'''Intention''' to complete and use or sell the asset; and
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| #'''Ability''' to use or sell the asset; and
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| #Existence of a '''market''' or, if to be used internally, the '''usefulness''' of the asset; and
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| #Availability of '''adequate''' technical, financial, and other '''resources''' to complete the asset.
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| If any of these criteria is '''not''' met, then the expenditure is a cost, and not an asset.
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| Certain defined types of costs - including training costs - must always be charged to expense when they are incurred.
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| 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.
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| == See also == | | == See also == |
| * [[Capitalise]] | | * [[ALFV]] |
| * [[Development]] | | * [[Available-for-sale]] |
| * [[Expense]] | | * [[FRS 5]] |
| * [[FRS 102]] | | * [[FRS 26]] |
| * [[IAS 16]] | | * [[Hedge effectiveness]] |
| * [[Intangible assets]] | | * [[Held for trading]] |
| * [[International Financial Reporting Standards]] (IFRS) | | * [[Held-to-maturity]] |
| * [[Recognition]] | | * [[HFT]] |
| * [[Research & development]] | | * [[IAS 18]] |
| * [[US GAAP]] | | * [[IFRS 9]] |
| | | * [[International Financial Reporting Standards]] |
| | | * [[Loans and receivables]] |
| == Other resources ==
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| *[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] | |
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| [[Category:Accounting,_tax_and_regulation]]
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| [[Category:Compliance_and_audit]]
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