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Meaning of capitalised

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Meaning of capitalised

  • This topic has 1 reply, 2 voices, and was last updated 1 month ago by John Moffat.
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  • November 17, 2025 at 4:54 pm #723570
    petestudentacca
    Participant
    • Topics: 11
    • Replies: 3
    • ☆

    Dear professor,

    I have a doubt, I am not sure what it means by “capitalised” – like capitalised Intangible Assets, we must have inflow of economic benefit, ittention to complete the assets and to use it or sell it, expected to be profitable.

    Am I also correct that Itanglible Asset generated by business can not be capitalised (goodwill and brands)

    Thank you!

    November 18, 2025 at 10:41 am #723574
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54806
    • ☆☆☆☆☆

    If something is capitalised then it means that it is treated as being a non-current asset.

    Intangible assets can be capitalised if they were purchased (e.g. purchased goodwill), but not if internally generated.

    This is explained in my free lectures on intangible assets.

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