IAS 38 Intangible Assets

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Muzaffar
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Joined: 31 May 2021, 10:05

IAS 38 Intangible Assets

Post by Muzaffar »

Hello community members,

I need guidance related to IAS 38.

A Company is established to make a software which will be used to generate revenue for the company when it is completed. The company hires IT related personnel to develop the software and rents out place for them, purchases IT equipment etc, incurs cost on other heads.

Will all the costs related to salaries etc of all the employees be capitalized? and what about rent and other allied expenditure e.g. printing a& stationary?

The asset meets the criteria of Internally developed Intangible asset.
JRSB
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Re: IAS 38 Intangible Assets

Post by JRSB »

See IAs 38 para 57
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Marek Muc
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Re: IAS 38 Intangible Assets

Post by Marek Muc »

@JRSB, the OP asks about costs that can be included in the cost of the intangible asset, not whether it meets the recognition criteria

@Muzaffar, IAS 38 requirements mostly mirror those of IAS 16, so see this page for guidance:
https://ifrscommunity.com/knowledge-bas ... equipment/
marea
Posts: 135
Joined: 27 Feb 2020, 17:35

Re: IAS 38 Intangible Assets

Post by marea »

IAS 38.66 defines which costs can be included in the cost of an internally generated intangible asset.
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