Initial recognition: internally generated brands, mastheads, titles, lists
Brands, mastheads, publishing titles, customer lists and items similar in substance that are internally generated should not be recognised as assets. [IAS 38.63]
Initial recognition: computer software
- Purchased: capitalise
- Operating system for hardware: include in hardware cost
- Internally developed (whether for use or sale): charge to expense until technological feasibility, probable future benefits, intent and ability to use or sell the software, resources to complete the software, and ability to measure cost.
- Amortisation: over useful life, based on pattern of benefits (straight-line is the default).
Initial recognition: certain other defined types of costs
The following items must be charged to expense when incurred:
- internally generated goodwill [IAS 38.48]
- start-up, pre-opening, and pre-operating costs [IAS 38.69]
- training cost [IAS 38.69]
- advertising and promotional cost, including mail order catalogues [IAS 38.69]
- relocation costs [IAS 38.69]
For this purpose, 'when incurred' means when the entity receives the related goods or services. If the entity has made a prepayment for the above items, that prepayment is recognised as an asset until the entity receives the related goods or services. [IAS 38.70]