Two minutes. Your own numbers. The result shows before you sign in to anything.
Example result
£42,000 a month, all six criteria met in April, ready for use from October: £201,600 of this year's £378,000 qualifies to be capitalised.
IAS 38 Intangible Assets is the International Accounting Standard that governs how entities recognise, measure, and disclose intangible assets on their balance sheets. It sets the bar for when an intangible asset may be recorded as an asset rather than expensed immediately, and prescribes the ongoing measurement and amortisation treatment throughout the asset's life.
The standard applies to all intangible assets not covered by a more specific standard, such as goodwill from business combinations (IFRS 3), financial instruments (IFRS 9), exploration and evaluation assets (IFRS 6), or insurance contract assets (IFRS 17).
IAS 38 applies wherever IFRS Accounting Standards are used, including UK and Irish listed groups and publicly accountable enterprises in Canada. It is adopted locally as AASB 138 in Australia, Ind AS 38 in India and PAS 38 in the Philippines, with the same requirements for companies; the local differences are narrow (Australia adds paragraphs for not-for-profit entities, and India keeps a carve-out on amortising toll-road rights). Most UK and Irish private companies report under FRS 102 Section 18 instead, and US companies under ASC 350 and ASC 730.
This guide covers the recognition and measurement principles, the compliance requirements, the decision frameworks, and the practical pitfalls that accountants, auditors, and CFOs encounter when applying the standard, and the gap the standard leaves between book value and economic value.
IAS 38 is not merely a disclosure standard. It determines whether billions of pounds of corporate investment appear on the balance sheet or vanish into the income statement as an immediate expense. Getting compliance right affects reported profits, asset bases, lending covenants, and acquisition valuations.
IAS 38 runs to about 130 paragraphs. The map below summarises what each part requires, with the paragraph references auditors cite, so you can go straight to the rule that applies. To see the rules applied, with journal entries, see our IAS 38 worked examples.
| Topic | Paragraphs | What IAS 38 requires |
|---|---|---|
| Scope and definition | 2-17 | An intangible asset is an identifiable non-monetary asset without physical substance (8). Identifiable means separable or arising from contractual or legal rights (12). The entity must control it (13-16) and expect future economic benefits from it (17) |
| Recognition | 18-23 | Recognise only if future economic benefits are probable and cost can be measured reliably (21), judged on reasonable and supportable assumptions (22) |
| Initial measurement | 24-32 | Measure at cost (24). For a separate purchase: price plus directly attributable costs (27-28), never advertising, training or administration (29) |
| Business combinations | 33-43 | Recognised apart from goodwill at fair value; the probability and reliable-measurement tests are treated as met (33). In-process R&D included (34), with later spend under the research and development rules (42-43) |
| Grants and exchanges | 44-47 | A granted asset may be recorded at fair value or a nominal amount (44). An exchange is at fair value unless it lacks commercial substance or neither fair value can be measured reliably (45) |
| Internally generated goodwill | 48-50 | Never recognised (48) |
| Research and development | 51-62 | Research is always expensed (54). Development is capitalised once all six criteria are met (57). If the two phases cannot be told apart, everything is research (53) |
| Brands, mastheads, publishing titles, customer lists | 63-64 | Never recognised when internally generated (63) |
| Cost of an internally generated asset | 65-67 | Directly attributable costs from the date the criteria are first met (65-66); selling, administration and training costs excluded (67) |
| Costs always expensed | 68-71 | Start-up, training, advertising and relocation costs are expensed (69). An expensed cost is never reinstated as an asset (71) |
| Cost vs revaluation model | 72-87 | Cost model (74) or revaluation model (75), the latter only where an active market exists, which is rare (78) |
| Useful life | 88-96 | Assess whether finite or indefinite (88), using the factors in 90. A life arising from contractual or legal rights cannot exceed their term (94), and is the shorter of the economic and legal periods (95); renewals extend it only where renewal is evidenced and not significantly costly (94, 96) |
| Amortisation (finite life) | 97-106 | Amortise from when the asset is available for use (97), on a pattern that reflects consumption, with revenue-based methods presumed inappropriate (98A-98C). Residual value is normally zero (100). Review life and method at least each year end (104) |
| Indefinite life | 107-110 | Not amortised (107); test for impairment every year and on any indication (108); reassess the life every period (109) |
| Impairment | 111 | IAS 36 applies |
| Disposal | 112-117 | Derecognise on disposal, or when no future benefits are expected from use or disposal (112); the gain or loss goes to profit or loss and is not revenue (113) |
| Disclosure | 118-128 | By class, including a reconciliation of carrying amounts (118(e)) and the research and development expensed in the period (126). Checklist and worked note: IAS 38 disclosure requirements |
Three paragraphs decide most real cases. IAS 38.57 sets the six tests for capitalising development costs, IAS 38.63 bars internally generated brands and customer lists, and IAS 38.71 stops a cost that has already been expensed from ever becoming an asset.
For an intangible asset to be recognised on the balance sheet under IAS 38, it must satisfy all four of the following criteria simultaneously. Failure on any single criterion means the expenditure must be expensed.
IAS 38.21 requires an intangible asset to be recognised only if it is probable that the expected future economic benefits will flow to the entity and the cost of the asset can be measured reliably. The first two tests below come from the definition in IAS 38.8-17; the third combines the definition's future benefits (17) with the probability test in paragraph 21(a); the fourth is paragraph 21(b).
The asset must be identifiable (IAS 38.12), meaning it is either:
The entity must have the power to obtain future economic benefits from the asset and to restrict the access of others to those benefits. Control is typically evidenced by legal rights (patents, copyrights, trademarks) but can also be established through confidentiality agreements, trade secret protection, or contractual restrictions. Control is also why most SaaS implementation spend is expensed: the customer receives a service and does not control the supplier's software. Our guide to SaaS configuration costs under IAS 38 applies the test to configuration and customisation.
The asset must be expected to generate future economic benefits for the entity. These benefits may take the form of revenue from the sale of products or services, cost savings, or other benefits resulting from the use of the asset.
The cost of the asset must be measurable reliably. For acquired assets, this is straightforward -- the purchase price provides the cost. For internally generated assets, this requires careful tracking of development expenditure from the point at which all capitalisation criteria are first met.
Many internally generated intangible assets fail the recognition criteria under IAS 38. Internally generated brands, mastheads, publishing titles, customer lists, and similar items are specifically prohibited from recognition because their cost cannot be distinguished from the cost of developing the business as a whole (IAS 38.63-64).
The following decision tree captures the logic that preparers and auditors must apply when assessing whether an intangible item qualifies for balance sheet recognition.
Does the item meet the separability criterion or arise from contractual/legal rights? If no, the expenditure cannot be recognised as an intangible asset. It may form part of goodwill if acquired in a business combination.
Can the entity obtain and restrict access to the future economic benefits? If no, the item cannot be recognised. Common failures: workforce skills (employees can leave), market share (cannot be controlled), customer loyalty without contracts.
Is there evidence of probable future economic benefits? Apply the probability recognition threshold. If no, expense immediately.
For acquired assets, the transaction price provides reliable cost. For internally generated items, has expenditure been tracked from the point at which all capitalisation criteria are satisfied? If no, expense immediately.
If all four tests are passed, recognise the intangible asset at cost on the balance sheet. If any test fails, expense the expenditure in the period incurred. There is no retrospective recognition -- once expensed, expenditure cannot be reinstated as an asset.
For internally generated intangible assets, IAS 38 draws a sharp line between the research phase (always expensed) and the development phase (capitalised if six specific criteria are met). This distinction is explored in detail in the next section.
This is the most consequential distinction in IAS 38 for practical compliance. The standard treats acquired and internally generated intangible assets very differently.
A separately acquired intangible is measured at cost (IAS 38.24). Paragraphs 27 to 30 decide what that cost includes:
| Included in cost (IAS 38.27-28) | Never included (IAS 38.29-30) |
|---|---|
| Purchase price, import duties and non-refundable purchase taxes, after trade discounts and rebates | Costs of introducing a new product or service, including advertising and promotion |
| Employee costs arising directly from bringing the asset to working condition | Costs of conducting business in a new location or with a new class of customer, including staff training |
| Professional fees arising directly from bringing the asset to working condition | Administration and other general overheads |
| Costs of testing whether the asset is functioning properly | Costs incurred after the asset is ready for use, including initial operating losses |
Two special cases follow. An asset received through a government grant, such as an airport landing right, a licence to operate a radio or television station, or an import licence or quota, may be recorded at fair value or at a nominal amount plus directly attributable costs (IAS 38.44). An asset received in an exchange is measured at fair value, unless the exchange lacks commercial substance or neither fair value can be measured reliably, in which case it takes the carrying amount of the asset given up (IAS 38.45).
Intangibles acquired in a business combination are recognised separately from goodwill at fair value, and IAS 38.33 treats the probability and reliable-measurement tests as always met. That includes in-process research and development (IAS 38.34); spend on it after the acquisition then follows the research and development rules (IAS 38.42-43). The section below on IFRS 3 covers the interaction; for how the three standards divide the work, see IFRS 3 vs IFRS 13 vs IAS 38, and for acquired projects, in-process R&D under IFRS 3.
Internally generated goodwill is never recognised as an asset (IAS 38.48). It is not an identifiable resource controlled by the entity whose cost can be measured reliably; only goodwill bought in a business combination reaches the balance sheet, under IFRS 3.
Development expenditure may only be capitalised when the entity can demonstrate all six of the following:
| # | Criterion | Practical Evidence |
|---|---|---|
| 1 | Technical feasibility of completing the asset | Prototype, proof of concept, technical review |
| 2 | Intention to complete the asset and use or sell it | Board minutes, project approval documentation |
| 3 | Ability to use or sell the intangible asset | Market research, licensing arrangements, internal use case |
| 4 | How the asset will generate future economic benefits | Revenue forecasts, cost savings analysis, business case |
| 5 | Availability of resources (financial, technical, and other) to complete development | Budget allocation, staffing plan, funding commitment |
| 6 | Ability to measure reliably the expenditure attributable to the asset during its development | Time tracking systems, project cost accounting, allocation methodology |
A UK technology company develops a proprietary analytics platform. During the research phase (market analysis, feasibility studies, technology exploration), all costs are expensed. Once the board approves the project, a working prototype is demonstrated, the development team is funded, and the company can demonstrate all six criteria are met, subsequent development expenditure is capitalised. The date on which the sixth and final criterion is satisfied becomes the starting point for capitalisation.
This is a critical difference from US GAAP. Under ASC 730, virtually all research and development costs are expensed immediately. Only internal-use software development (ASC 350-40) and software for sale (ASC 985-20) have specific capitalisation provisions under US GAAP. IAS 38's approach can result in significantly higher reported assets and profits for companies with material development programmes.
Run the six tests on a project of your own below. It records which criteria are met and shows the outcome before you sign in to anything; our R&D capitalisation guide walks through each test in detail. To turn the tests into a written policy with the evidence auditors ask for, see our IAS 38 capitalisation policy template.
Some spending can never become an intangible asset, however valuable it feels. IAS 38.69 lists the main categories:
| Category | What it covers |
|---|---|
| Start-up and pre-opening costs | Legal and secretarial costs of setting up an entity, opening a new facility or business, and launching new operations or products, unless they form part of property, plant and equipment under IAS 16 |
| Training | Expenditure on training activities (staff skills are not controlled by the entity, IAS 38.15) |
| Advertising and promotion | Including mail-order catalogues; a prepayment for services not yet received can be held as an asset until they are received (IAS 38.70) |
| Relocation and reorganisation | Moving or reorganising part or all of an entity |
IAS 38.71 is the rule that catches most capitalisation projects late. Expenditure that was recognised as an expense in an earlier period can never be reinstated as part of the cost of an intangible asset. If the evidence that all six criteria were met exists only from September, the March to August spend stays in profit or loss, even if the project later proves to have been viable from March. Capitalisation can only run forward from the date the evidence exists. (If the criteria were demonstrably met in March and the costs were expensed by mistake, that is a prior-period error to correct under IAS 8, which is a different question.)
Paragraph 53 adds one more trap: if an entity cannot distinguish the research phase from the development phase of a project, it must treat all of the spend as research and expense it.
After initial recognition at cost, IAS 38 offers two subsequent measurement models.
Under the cost model, the intangible asset is carried at cost less any accumulated amortisation and any accumulated impairment losses. This is the model used by the vast majority of entities worldwide.
Under the revaluation model, the asset is carried at a revalued amount, being its fair value at the date of revaluation less any subsequent accumulated amortisation and impairment losses. However, IAS 38 restricts the revaluation model to intangible assets for which an active market exists.
| Aspect | Cost Model | Revaluation Model |
|---|---|---|
| Carrying amount | Cost less amortisation and impairment | Fair value less subsequent amortisation and impairment |
| Availability | Always available | Only if active market exists for the asset |
| Revaluation surplus | Not applicable | Recognised in other comprehensive income (OCI) |
| Practical usage | Nearly universal | Extremely rare (examples: taxi licences, some emission rights) |
| Audit complexity | Low | High -- requires regular fair value assessment |
| FRS 102 equivalent | Available (Section 18) | Available where an active market exists (FRS 102 18.18) |
The active market requirement effectively eliminates the revaluation model for most intangible assets. IAS 38.78 itself says an active market for an intangible is uncommon, though one may exist for freely transferable taxi licences, fishing licences or production quotas. Patents, brands, music and film publishing rights and trademarks are unique, so they cannot have one. The cost model is the practical default; our FAQ on the IAS 38 revaluation model sets out what applying it would involve.
IAS 38 requires entities to assess whether the useful life of an intangible asset is finite or indefinite. This assessment drives the amortisation treatment.
Assets with a finite useful life are amortised systematically over that life, starting when the asset is available for use (IAS 38.97). The amortisation method should reflect the pattern in which the asset's future economic benefits are consumed. If that pattern cannot be determined reliably, the straight-line method is used. A method based on the revenue the asset generates is presumed inappropriate, and the presumption can be rebutted only in the narrow cases IAS 38.98A-98C describe. Residual value is assumed to be zero unless a third party has committed to buy the asset at the end of its life, or there is an active market for the asset from which residual value can be determined and that market will probably still exist at the end of its life (IAS 38.100).
The useful life and amortisation method must be reviewed at least at each financial year end (IAS 38.104). Changes are accounted for as changes in accounting estimates (IAS 8). For the factors IAS 38.90 asks you to weigh, see our guide to useful life estimation.
An intangible asset has an indefinite useful life when there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows. This does not mean "infinite" -- it means the entity cannot determine a finite life based on analysis of all relevant factors.
Assets with indefinite useful lives are not amortised (IAS 38.107) but are subject to an annual impairment test under IAS 36, and whenever there is an indication of impairment (IAS 38.108). The indefinite life assessment must be reviewed each period to determine whether events support the continued indefinite classification (IAS 38.109); moving an asset from indefinite to finite life is itself an indicator that it may be impaired (IAS 38.110). Our FAQ on accounting for indefinite useful lives and the comparison of value in use and fair value cover how the IAS 36 test is run.
Finite life = amortise over the useful life. Indefinite life = do not amortise, but test for impairment annually. The choice between finite and indefinite classification has a direct impact on reported profits and must be supported by analysis, not assumption. Auditors will challenge indefinite life assertions that lack supporting evidence.
Understanding the interaction between IAS 38 and IFRS 3 Business Combinations is critical for anyone involved in purchase price allocation work.
When a business combination occurs under IFRS 3, the acquirer must recognise acquired intangible assets separately from goodwill. IFRS 3 uses a broader recognition gateway than IAS 38 for day-to-day accounting:
| Aspect | IAS 38 (General Recognition) | IFRS 3 (Business Combinations) |
|---|---|---|
| Recognition test | Identifiable + controlled + probable benefits + reliable cost | Identifiable (contractual-legal OR separable) |
| Probability criterion | Must be assessed | Automatically satisfied -- fair value reflects probability |
| Reliable measurement | Must be demonstrated | Automatically satisfied -- fair value can always be estimated |
| Internally generated items | Many categories prohibited | Acquired in combination, so the prohibition does not apply |
| Customer relationships | Cannot be recognised internally | Commonly recognised in PPA at fair value |
| Assembled workforce | Cannot be recognised | Cannot be recognised separately (subsumed in goodwill) |
| Subsequent measurement | IAS 38 applies from acquisition date onwards | Handover to IAS 38 after initial recognition |
This means that an acquirer in a business combination will typically recognise significantly more intangible assets on the balance sheet than the target company recognised itself. Customer relationships, order backlogs, favourable contracts, non-compete agreements, and technology assets that were never on the target's books will be brought onto the acquirer's balance sheet at fair value. Valuation enters through IFRS 3, IAS 36 and IFRS 13; our IFRS intangible asset valuation guide sets out when each standard calls for a value and which method fits each asset.
The practical implication is profound. A company that has spent years building customer relationships (expensed under IAS 38) will see those relationships appear as a separate intangible asset when it is acquired (recognised under IFRS 3). This "recognition gap" is one reason why the balance sheet systematically understates the intangible value of businesses that have not been through an acquisition.
UK private companies report under FRS 102 (UK GAAP) rather than full IFRS. Section 18 of FRS 102 governs intangible assets other than goodwill. While conceptually similar to IAS 38, there are several important differences.
For a detailed comparison, see IAS 38 vs FRS 102 Section 18.
| Aspect | IAS 38 (IFRS) | FRS 102 Section 18 (UK GAAP) |
|---|---|---|
| Development costs | Capitalisation required if all six criteria met | Capitalisation permitted (policy choice -- may expense all) |
| Revaluation | Permitted if active market exists | Permitted if active market exists (18.18) -- rare in both |
| Useful life | Finite or indefinite | Always finite; at most 10 years if not reliably estimable (18.19-18.20) |
| Goodwill amortisation | Not amortised (IFRS 3) -- impairment only | Amortised over useful life (max 10 years if indeterminate) |
| Impairment reversal | Permitted for intangibles (not goodwill) | Permitted for intangibles (not goodwill, 27.28) |
| Disclosure | Extensive class-by-class requirements (IAS 38.118-128) | Simplified, proportionate to entity size |
| Business combination recognition | IFRS 3 -- broader intangible recognition | Section 19 -- fewer intangibles separately recognised |
UK companies transitioning from FRS 102 to IFRS (for example, ahead of a listing or PE exit) must carefully model the impact on their intangible asset balances. The shift from goodwill amortisation to impairment-only testing under IFRS can significantly change reported profits. Development costs that were optionally expensed under FRS 102 may need to be capitalised under IAS 38 if the six criteria are met.
Based on audit findings and common practice errors, these are the compliance failures that trip up even experienced practitioners.
IAS 38.54 is unambiguous: all expenditure on the research phase must be expensed as incurred. The most common error is failing to distinguish clearly between research and development activities, leading to premature capitalisation of costs that belong in the research phase.
Development costs may only be capitalised from the date on which all six criteria in IAS 38.57 are first satisfied. Entities sometimes capitalise from project inception or from the date of management's decision to proceed, rather than from the date the sixth criterion is demonstrably met.
IAS 38.104 requires the useful life and amortisation method to be reviewed at least at each financial year end. Many entities set the useful life at initial recognition and never revisit it, even when circumstances change materially.
Indefinite useful life does not mean the entity simply has not decided on a period. It requires a positive analysis demonstrating no foreseeable limit to the period of benefit. Auditors increasingly challenge indefinite classifications that lack documented supporting analysis.
Indefinite-life intangible assets require annual impairment testing, but IAS 36 also requires testing whenever there is an indication of impairment. Entities that only test annually and ignore mid-year indicators (loss of a major customer, regulatory change, technology disruption) are non-compliant.
IAS 38.63 specifically prohibits the recognition of internally generated brands, mastheads, publishing titles, customer lists, and items similar in substance. Despite this, some entities attempt to capitalise brand-building expenditure as an intangible asset.
If you are responsible for IAS 38 compliance, ask these questions at each reporting date: (1) Have we correctly separated research from development? (2) Can we evidence the date all six capitalisation criteria were met? (3) Have we reviewed useful lives and amortisation methods? (4) Have we tested indefinite-life assets for impairment? (5) Have we assessed impairment indicators for all intangible assets? If the answer to any is "no", there is a compliance gap to address.
The most significant criticism of IAS 38 is the gap it creates between balance sheet values and economic reality.
The ONS estimates that UK businesses invested £185.5 billion in intangible assets in 2021. That is an estimate in the National Accounts; in company accounts, under IAS 38 or FRS 102, most of the same spending is expensed as it is incurred. The result is that the most valuable companies in the economy carry balance sheets that systematically understate their true asset base.
This has practical consequences:
For an owner preparing a business for sale, this is the gap a buyer sees: the brand, the customer relationships and the know-how that make the business worth acquiring are invisible on the balance sheet that the buyer's diligence starts from.
IAS 38 was designed for an industrial economy where value was predominantly tangible. In today's intangible-intensive economy, the standard's recognition criteria exclude the majority of corporate value from balance sheets. Understanding this gap is essential for anyone making investment, lending, or strategic decisions.
Clients ask advisers what the IASB's review of IAS 38 will mean for them. The honest answer is that any change is years away, but the test the standard already sets can be run on their own accounts today. The worked examples in this guide stop at the point where the answer depends on a ledger: which costs met all six criteria, from which date, and which were expensed before the evidence existed.
That is the step Opagio Intangibles takes. It shows the same ledger on three bases, one at a time and never mixed:
| Basis | What it shows | Status |
|---|---|---|
| Reported | The accounts as filed: only the intangibles already on the balance sheet, at carrying amount | Fact |
| Accounting-eligible | What IAS 38 would let the company capitalise, with the paragraph 63 bar on internally generated brands and customer lists applied | Actionable under the standards |
| Management | A non-statutory view that adds the investment the standards exclude | A model, never for filing |
The register holds each capitalised asset's carrying amount and rolls it forward from opening to closing through additions, amortisation, impairment and disposals: the movement IAS 38.118(e) asks you to reconcile.
The recognition test is free to run on one project. Running it across the whole ledger, with the Accounting-eligible figures kept apart from the management view, is the work an IAS 38 policy actually needs.
IAS 38 sets when an identifiable, non-monetary asset without physical substance goes on the balance sheet and how it is measured afterwards. It is recognised only if future benefits are probable and cost is reliably measurable (IAS 38.21); research is expensed and development capitalised once six criteria are met (IAS 38.54 and 57); internally generated brands and customer lists are never recognised (IAS 38.63); and assets are carried under the cost model or, with an active market, the revaluation model (IAS 38.72). The paragraph map near the top of this guide gives the full structure, with references.
Intangible assets that meet all four recognition criteria -- identifiability, control, future economic benefits, and reliable cost measurement -- can be recognised. Common examples include patents, copyrights, software, licences, trademarks (when acquired), customer relationships (when acquired in a business combination), and capitalised development costs. Internally generated brands, mastheads, customer lists, and publishing titles are specifically prohibited.
Yes, but only when all six criteria in IAS 38.57 are met: technical feasibility, intention to complete, ability to use or sell, probable future economic benefits, availability of adequate resources, and ability to measure expenditure reliably. Unlike US GAAP (ASC 730), which generally expenses all R&D, IAS 38 requires capitalisation once these criteria are satisfied. This is a significant difference that can materially affect reported assets and profits.
IAS 38 governs day-to-day intangible asset accounting (recognition, measurement, amortisation, impairment). IFRS 3 governs the recognition of intangible assets acquired in a business combination. IFRS 3 has a broader recognition gateway: the probability and reliable measurement criteria are automatically satisfied for acquired assets. This means more intangible assets are recognised in a purchase price allocation than a company would recognise on its own balance sheet under IAS 38.
The most impactful differences for UK companies are: (1) FRS 102 permits but does not require development cost capitalisation, while IAS 38 requires it when the criteria are met; (2) FRS 102 treats every intangible asset as having a finite useful life, capped at 10 years where the life cannot be reliably estimated, while IAS 38 allows an indefinite life; (3) goodwill is amortised under FRS 102 but subject to impairment-only testing under IFRS. Both frameworks allow the revaluation model only where an active market exists, and neither allows a goodwill impairment to be reversed. See our detailed IAS 38 vs FRS 102 Section 18 comparison.
No. US companies report under US GAAP, where the equivalent standards are ASC 350 (Intangibles -- Goodwill and Other) and ASC 730 (Research and Development). The most significant difference is that US GAAP expenses virtually all R&D immediately, whereas IAS 38 permits capitalisation of development costs. For a detailed comparison, see our IAS 38 vs ASC 350 comparison.
Opagio Intangibles reads your accounts on three bases, one at a time: Reported (what you filed), Accounting-eligible (what the accounts could show) and Management (a non-statutory view, never for filing).
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Ten IAS 38 worked examples with the journal entries: when development costs start to be capitalised, the entry IAS 38.71 forbids, brands and customer lists, amortisation, a useful-life change, impairment, revaluation, an exchange and a disposal.
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Every IAS 38 disclosure requirement in one checklist, paragraphs 118 to 128, with a worked intangible assets note, the carrying-amount reconciliation line by line, and the FRS 102 differences.
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IAS 38 defines 6 criteria for intangible asset recognition. Complete guide covering capitalisation, amortisation, impairment, and what the standard misses.
Read more →AI and IAS 38: When Can You Capitalise AI Development Costs?
IAS 38 sets six criteria for capitalising development costs, but applying them to AI projects is fraught with ambiguity. This article maps each criterion to AI development realities and provides practical guidance for CFOs and accountants navigating the recognition question.
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