generally developed intangibles

Yes, brands are intangible assets. But if it's an internally generated (did you really mean "generally developed intangibles"?) brand, then it should be expensed. If it's a purchased brand, then it's on the statement of financial position

So internally developed intangibles are always capitalised? What is internally developed intangible anyway? So brands, patents etc are all expensed

NO, NO, NO! Internally generated are NOT capitalised, they are expensed. Intangible assets that are BOUGHT are capitalised Brands, patents etc are NOT always expensed. If we have BOUGHT them in, say, an acquisition of a subsidiary, then they are capitalised. If we develop them ourselves internally, then they are expensed

thanks very much. so internally generated intangibles can be external and internal. if external then capitalised ( lets say it meets the criteria) and interanlly developed will be capitalised. the question dec 2011 scrambles didnt really say if it was acquired, just says internally, so i assume its expensed, but answers say. ias 38 Internally generated is capitalised if criteria is met.

NO!!!! INTERNALLY generated is generated ..... internally. How can an internally generated intangible be externally generated? If internally generated, then expense. If bought from outside, then capitalise. Very rare exceptions allow some internally generated to be capitalised - for example, development expenditure - but only then if they satisfy the criteria

Ok I understand it fully. Thank you Mike :)

You're welcome

hi Mike, when i did this question (scramble) i had to go through the answer a few times to get it. if you read that Interanally generates intangibles aren't capitalised why did they recognise it. the past papers have me wondering if i learnt anything at all!!

Scramble? what reference? And PLEASE be careful with your spelling of interanally! It sounds extremely medical!