When determining whether an internally developed intangible asset should be recognized, the process of generating the intangible is usually broken down into the following parts:
A)The research and financing element.
B)The acquisition and disposal stages.
C)The exploitation and disposal stages.
D)The research and development phase.

Question

Quizplus · Accepted Answer

The process of generating an internally developed intangible asset includes the research and development phase, which involves significant R&D activities to create, produce or improve the asset. Therefore, the best choice is D.

When Determining Whether an Internally Developed Intangible Asset Should Be