Under IAS 38/AASB 138, which statement concerning internally generated intangible assets is not true?
A) They can only be recognised if their cost can be measured reliably.
B) It is likely that the cost of internally generated brand names, mastheads and customer lists can be measured reliably.
C) The tests for recognising internally generated intangibles are more stringent than for recognising internally generated property, plant and equipment.
D) If patents and copyrights are deemed to be in the research phase all expenditure incurred should be expensed rather than capitalised.

Question

Quizplus · Accepted Answer

Under IAS 38/AASB 138, it is generally considered that the cost of internally generated brand names, mastheads, publishing titles, customer lists, and items similar in substance cannot be measured reliably. This is because these costs are often indistinguishable from the cost of developing the business as a whole. Therefore, such items are not recognized as intangible assets.

Under IAS 38/AASB 138, Which Statement Concerning Internally Generated Intangible