Capitalisation of Intangibles

Definition

The accounting practice of recording an intangible expenditure as an asset on the balance sheet rather than expensing it immediately through the income statement. Under IAS 38, development costs may be capitalised when specific recognition criteria are met, whereas research costs must always be expensed.

Related Terms

Cap Table (Capitalisation Table) Capital Deepening Capital Expenditure (CapEx) Capital Intensity Ratio Carried Interest (Carry)

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