Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.
Software development costs are recognised as an intangible asset when all of the following criteria are demonstrated:
- The technical feasibility of completing the software so that it will be available for
use or sale.
- The intention to complete the software and use or sell it.
- The ability to use the software or to sell it.
- How the software will generate probable future economic benefits.
- The availability of adequate technical, financial and other resources to complete the
development and to use or sell the software.
- The ability to measure reliably the expenditure attributable to the software during
its development.