Which statement is correct? Under the current accounting standards applying to intangible assets:
A) no internally developed intangible assets should be recognised in the accounts
B) all internally developed intangible assets should be recognised in the accounts
C) some internally developed intangible assets should be recognised in the accounts
D) only goodwill developed internally should not be recognised in the accounts

Question

Quizplus · Accepted Answer

According to the current accounting standards, only some internally developed intangible assets should be recognized in the accounts. Those that meet certain criteria, such as being separable, reliably measurable, and having a future economic benefit, can be recognized as an intangible asset on the balance sheet. Goodwill developed internally cannot be recognized as an intangible asset under these standards.

Which Statement Is Correct? Under the Current Accounting Standards Applying