To be recognised, an intangible asset must be identifiable, controlled by the entity and expected to generate future economic benefits. Research costs are expensed; development costs are capitalised when certain conditions are met.
In business combinations, items such as customer relationships and brands are valued separately.
Source: TAS 38
Related terms
GoodwillThe excess of the consideration paid in a business combination over the fair value of the acquired business's identifiable net assets.Impairment of assetsRecognising as a loss the excess of an asset's carrying amount over its recoverable amount.Purchase price allocation (PPA)Allocating the consideration paid in a business combination to the identifiable assets acquired and liabilities assumed at their fair values, with the remainder determined as goodwill.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Amortised costThe amount at which a financial asset or liability is measured at initial recognition, minus principal repayments, plus cumulative amortisation calculated using the effective interest method.AssociateAn entity over which the investor has significant influence but not control or joint control.
Last updated: October 22, 2026 · This definition is for general information only.