What are internally generated intangible assets
They are not based on an acquisition date
An entity might outlay funds for a new project and that project may or may not generate future economic benefits.
To see if these funds should be recognised as an intangible, there are two phases:
Research
- Investigating, understanding, acquiring knowledge,
- No intangible is recognised
Development
- Moving from research to develop at a point in time
- Paragraph 57 applies, all criteria must be met
- This IS recognised
Internally Generate Goodwill
- Can NOT be recognised