Intangible assets recognition and amortisation principles clarified; development costs capitalised only when strict criteria are met.

The Standard requires recognition of an intangible asset only when it is identifiable, controlled by the enterprise and expected to yield probable future economic benefits, and when cost can be measured reliably. Expenditure on research is expensed; development costs are capitalised only if six specific conditions are met. Intangible assets are carried at cost less accumulated amortisation and impairment; amortisation should reflect consumption with a rebuttable presumption of a maximum ten year useful life, and recoverable amounts must be tested annually for assets not yet available for use or those with amortisation periods exceeding ten years.

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