Unformatted text preview: ent expenditures cannot be capitalized.
asset purchased separately
from a business should be
capitalized at its cost. An
intangible asset acquired as
part of the acquisition of a
capitalized separately from
goodwill if its value can be
measured reliably on initial
recognition. Other countries
Recorded at acquisition cost. Canada Japan Norway Internally developed intangibles, except goodwill, may be
included as assets if:
(1) They are material.
(2) They can be clearly identified as contributing to the
revenue earnings capability of the business in the future.
(3) It is reasonably expected that the future revenue will be
sufficient to carry the expense forward, or the
expenditure has given rise to an asset that may be
reasonably expected to realize at least its book value.
AASB 1011, Accounting for Research and Development
Costs (AAS 13), states that R&D costs should be expensed as
they are incurred.
Goodwill in a business Research costs are required to be expensed as they are
combination is represented by incurred. The same is generally true of development costs,
the difference between cost but deferral is required if all the following criteria are met:
and the acquiring company's (1) The product or process is clearly identified and the costs
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