IAS 38

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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