U.S.GAAP and IFRS require firms to treat some or all expenditures made to internally develop brand names, customer lists, new technologies, and other intangibles as expenses in the period of the expenditure.

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Both U.S.GAAP and IFRS require firms to treat some or all expenditures made to internally develop intangible assets such as brand names, customer lists, new technologies, etc., as expenses in the period of the expenditure. This is known as the 'expense recognition' principle of accounting. However, there may be some exceptions where such expenditures can be capitalized and amortized over a period of time.

USGAAP and IFRS Require Firms to Treat Some or All