ACCA FR · Chapter 3 · Question 1 of 12
Under IAS 38, which of the following internally generated items may be recognised as an intangible asset?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Development expenditure that meets all of the IAS 38 recognition criteria
Explanation
IAS 38 requires development expenditure to be capitalised once the entity can show technical feasibility, intention and ability to complete and use or sell the asset, probable future economic benefits, adequate resources, and reliable measurement. Research costs must be expensed. Internally generated brands, mastheads, customer lists and training costs can never be recognised as intangible assets.
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