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Is all the internally generate intangibles are prohibited from capitalisation?
If yes, what is the difference between development cost (can be capitalised if criteria met) and internally generated intangibles?
To the largest extent, all internally generated intangible assets must be written off as the related costs are incurred
Development costs are somewhat an exception to that general rule
However, internally generated computer software, whether for internal use or for sale is another exception
Brands, mastheads, publishing titles, customer lists and items similar in substance that are internally generated should not be recognised as assets according to IAS 38
But with reference to computer software, if:
it’s purchased capitalise as indicated:
Operating system for hardware: include in hardware cost
Internally developed (whether for use or sale): charge to expense until …
technological feasibility
probable future benefits
intent and ability to use or sell the software
resources to complete the software
and ability to measure costAmortisation: over useful life, based on pattern of benefits or on a straight-line basis if that pattern cannot be established
OK?
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