CAF-6 · Chapter 12 · Question 2 of 15
Which of the following internally generated items can be recognized as an intangible asset if certain strict criteria are met?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Development costs
Explanation
IAS 38 specifically prohibits the recognition of internally generated brands, mastheads, publishing titles, and customer lists. However, internally generated development costs can be capitalized if all PIRATE criteria (technical feasibility, intention to complete, ability to use/sell, etc.) are met.
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