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INTANGIBLE ASSETS

Internally generated intangible assets

• It is sometimes difficult to assess whether or not an

internally generated intangible asset qualifies for

recognition. It is often difficult to determine:

• if there is an identifiable asset that will generate probable

future economic benefits, and

• the cost of the asset reliably. (IAS 38.51)

• To assess whether an internally generated intangible

asset meets the recognition criteria, the generation of an
asset is classified in:

• a research phase, and

• a development phase. (IAS 38.52)

• If an entity cannot distinguish the research phase from

the development phase of an internal project to create

an intangible asset, the entity treats the expenditure as if
it were incurred in the research phase only. (IAS 38.53)

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