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When to recognize an intangible asset
in IAS 38 - Intangible Assets by Level 3 Member (5.7k points)

1 Answer

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The key question is whether to capitalize or expense. In case you opt to capitalize you need to see if such expenditure meets the recognition criteria given in IAS.16.7. That is:

The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if:
(a) it is probable that future economic benefits associated with the item will flow to the entity; and
(b) the cost of the item can be measured reliably.

Otherwise you can recognize as an expense in the period it occurred.
by Level 2 Member (2.8k points)


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