IASB launches in-depth review of IAS 38

The IASB’s objective is to assess whether the requirements of the current IAS 38 – Intangible Assets remain relevant and continue to fairly reflect current business models, or whether they need to be improved.   

This decision follows stakeholder feedback on the IASB’s third work programme consultation. During consultations, many stakeholders stressed the need to improve IAS 38, in terms both of scope, recognition and measurement requirements (including the difference between accounting for acquired and internally generated intangible assets), and of disclosures in the notes to the financial statements.   

The IASB accepts that this is a very large, complex project. This initial stage will seek to define the scope of the project and explore how best to organise the work.  

In particular, it will be necessary to decide whether the project should be limited to the recognition and disclosure of assets and expenses arising from expenditure on intangible items, or whether it should be broader in scope.  

The IASB will also need to consider the connections between this project and the work of the International Sustainability Standards Board (ISSB); for example, the connections with some information required by IFRS S1 or links with the ISSB’s forthcoming research project on human capital. For more details, you can consult the project description on the IASB site here.