Australian financial reporting standard AASB 138 Intangible Assets (paragraphs 51 to 67)

Australian Financial Reporting PART A

According to AASB Framework for the Preparation and Presentation of Financial Statements an asset is defined as a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity ' An asset is recognized in the balance sheet when it is probable that the future economic benefits will flow to the entity and the asset has a cost or value that can be measured reliably (Framework According to AASB 138 An intangible asset is an

identifiable non-monetary asset without physical substance ' The asset must be controlled by the entity as a result of events in the past and something from which the entity expects future economic benefits to flow . In to assess that whether an internally generated intangible asset can be recognized or not , the entity classifies the generation of the asset into a research phase and a development phase . If an entity is unable to distinguish the research phase from the development phase of an internal project to create an intangible asset , the entity treats the expenditure on that project as if it was incurred in the research phase only Intangible asset resulting from the research stage will not be recognized and expenditure on research (or on the research stage of an internal project ) will be recognized as an expense when it is incurred The reason for this accounting treatment is that , in the research phase of an internal project , an...