Unformatted text preview: ropean Union, which did not have specific criteria for recognition of internally developed
This table calls for several comments. For example, standard IAS 38 states two exclusion
criteria: an enterprise should “recognize an intangible asset (at cost) if, and only if: (a) it is
probable that the future economic benefits that are attributable to the asset will flow to the
enterprise; and (b) the cost of the asset can be measured reliably”. However, it can be argued
that the standard also includes an inclusion criterion (identifiability) in its definition of
intangibles: “An intangible asset is an identifiable non-monetary asset without physical
substance held for use in the production or supply of goods or services, for rental to others,
or for administrative purposes”.
To be “non-monetary” and “without physical substance” is intrinsic to an intangible, while its
“identifiability” corresponds to an accounting approach and is not unproblematic, so far as the
concept is concerned. Does identifiability mean the existence of a le...
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