Question

Paragraph 23 of an earlier version of IAS 38 Intangible Assets states that

The Board’s view, consistently reflected in previous proposals for intangible assets, is that there should be no difference between the requirements for:

(a) intangible assets that are acquired externally; and

(b) internally generated intangible assets, whether they arise from development activities or other types of activities.

(Required: Evaluate the above view, identify and explain inconsistencies between this view and the current requirements of AASB 138.)

maximum of 600 words

Answer 1