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This requirement applies whether an intangible asset

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Unformatted text preview: is to be sold: capitalization (and amortization) applies once technological feasibility is established. Capitalization ceases when the product is available for general release to customers. Similar rules apply to certain elements of development costs for computer software for internal use. Supra-National Accounting Organizations IASC IAS 38 requires an enterprise to 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. This requirement applies whether an intangible asset is acquired externally or generated internally. IAS 38 includes additional recognition criteria for internally generated intangible assets. If an intangible asset is No intangible asset from research should be recognized. acquired separately, the cost Expenditure on research should be recognized as an expense when it is incurred. is the purchased price. If an intangible asset is An intangible asset arising from development should be a...
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