Acquired in-process research and development costs for viable projects should be capitalized as an indefinite-life intangible asset.

Question

Quizplus · Accepted Answer

According to International Accounting Standards (IAS) 38, if acquired in-process research and development costs meet certain criteria (such as having a clear commercial viability, ability to use or sell the related product, etc.), they should be capitalized as an intangible asset with an indefinite useful life. This is because the future benefits of such projects cannot be reliably estimated, and therefore they cannot be amortized over a definite period.

Acquired In-Process Research and Development Costs for Viable Projects Should