Unformatted text preview: . Nevertheless, it can be
seen that all the entities use recognition criteria for capitalization of intangibles, which
supports our theory that definitions of intangibles are often too brief to be useful in
determining the appropriate accounting treatment.
To study the recognition criteria as such, we used the classification developed by Lacroix
(1996: 8), referred to earlier, which identifies inclusion criteria and exclusion criteria.
There are two inclusion criteria, which operate within an economic and society-oriented field
of analysis. They are the reference to the market (criterion for recognition of purchased
intangible assets) and the socio-legal recognition of the value of an item (this can be
considered similar to the identifiability criterion).
The exclusion criteria can be said to exist by default, in other words they are in fact noninclusion criteria. There are two of them. The first is the risk level, or any random factor
affecting the inflow of future revenues (the economic crit...
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