International accounting standards allow firms to record development costs that benefit future periods as an intangible asset.

Question

Quizplus · Accepted Answer

International accounting standards (IAS 38) allow firms to record development costs as an intangible asset if certain criteria are met, including the ability to demonstrate technical feasibility, future economic benefits, and the ability to reliably measure the costs. These costs are then amortized over their useful life.

International Accounting Standards Allow Firms to Record Development Costs That