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Is it a best accounting practice that a parent company after assessing reliably a substantial fair value of an intangible asset decided to capitalize a new research project by recognizing separately from the goodwill of the a potential subsidiary?
Hi,
If there is research that has been carried out by the subsidiary then if it can be measured reliably it can be capitalised in the group accounts and recognised separately from goodwill. It can still not be recognised in the subsidiary’s individual accounts.
Thanks
ok thanks but i was thinking its only development costs that have certain criteria as defined by ifrs .
And if an advertising campaign was carried out and has benefit that is expected to flow in the future can we expended that or capitalized it?
@iyamu said:
ok thanks but i was thinking its only development costs that have certain criteria as defined by ifrs .You need to distinguish between IAS 38 that deals with the intangible in the individual accounts and IFRS 3 that deals with the business combination. IFRS 3 allows them to be capitalised if they can be measured reliably.
@iyamu said:
And if an advertising campaign was carried out and has benefit that is expected to flow in the future can we expended that or capitalized it?It is written of in the individual accounts but could be capitalised in the group accounts on acquisition of the subsidiary.
Thanks
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