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In april 2001 the international accounting standards board (board) adopted ias 38 intangible assets, which had originally been issued by the international accounting standards committee in september 1998.

The capitalisation cut off is determined by when the testing stage of the software has been completed and the software is ready to go live Costs incurred after the final acceptance testing and launch have been successfully completed, should be expensed. This fact sheet is based on existing requirements as at 31 december 2015 and does not take into account recent standards and interpretations that have been issued but are not yet effective. Ias® 38 intangible assets is one of the key standards in the financial reporting (fr) exam, covering how companies should account for intangible assets

This standard can be examined in all sections of the exam. Ias 38 intangible assets sets out the recognition criteria, measurement bases and disclosure requirements for intangible assets not dealt with specifically in another standard This page provides information on the standard and recent amendments, alongside icaew factsheets and guides. Ias 38 helps ensure that acquirers and investors can evaluate the intangible assets of target companies consistently

In revising ias 38 and developing ifrs 3, the board affirmed the view in the previous version of ias 38 that identifiability is the characteristic that conceptually distinguishes other intangible assets from goodwill.

The ifric noted that ias 38 includes definitions and recognition criteria for intangible assets that provide guidance to enable entities to account for the costs of complying with the reach regulation. This course explains these three categories in detail, after which the measurement requirements of ias 38 are discussed (initial measurement, subsequent measurement methods, amortisation, impairment, disclosure requirements) using practical examples and interim tests to enhance understanding.

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