CIMA BA3 · Chapter 10 · Question 8 of 10
Under IAS 38 Intangible Assets, which of the following may be recognised as an intangible asset if the relevant criteria are met?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Development costs for a new product once technical feasibility and the intention and ability to complete and sell it can be demonstrated
Explanation
Development expenditure is capitalised when the IAS 38 criteria are all met, including technical feasibility, intention and ability to complete and use or sell, probable future benefits, adequate resources and reliable measurement. Research costs are always expensed, and internally generated brands and training costs cannot be capitalised.
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