Intangible Assets (IAS 38): R&D Capitalisation, Amortisation & Software Costs
Research vs development with the six-criteria checklist, development cost from time sheets and overhead, internally developed software by stage, straight-line and units-of-production amortisation, indefinite lives and the annual impairment test, revaluation vs cost model, disposals with deferred consideration and the intangibles roll-forward with a chart: 8 graded labs on one fictional robotics company.
The first lesson is free — no account needed.
About this course
An intangible assets course that accounts for the patents, software and development projects of one fictional robotics company, Orbitline, in a spreadsheet, for accountants, auditors, controllers and accounting students. You test eight R&D projects against the six development criteria and split capitalised from expensed spend, build the cost of a development asset from time sheets and a directly attributable overhead rate, classify the costs of internally developed software by stage and start amortisation at go-live, run straight-line and units-of-production amortisation schedules, test indefinite-life intangibles for impairment each year, compare the revaluation and cost models where an active market exists, measure the gain on disposals with deferred consideration, and complete the intangibles roll-forward note with a chart. General IAS 38 and ASC 350 concepts with no affiliation with the IASB or FASB. Educational only, not accounting advice. The first lab is free.
Lessons
- Research or Development? The Six-Criteria ChecklistFree
- Capitalised Development Cost from Time Sheets & Overhead Pro
- Internally Developed Software: Which Stage Can Be Capitalised? Pro
- Amortisation Schedules: Straight-Line, Units of Production & Residual Zero Pro
- Indefinite-Life Intangibles & the Annual Impairment Test Pro
- Revaluation Model vs Cost Model: Only with an Active Market Pro
- Derecognition: Selling Intangibles, Deferred Consideration & the Gain Pro
- The Intangibles Note: Cost, Accumulated Amortisation & Carrying Amount (Chart) Pro