Acca financial Accounting (FA) Study Text ac ca (FA)

5 

IAS 38 disclosure requirements 

According to IAS 38, Intangible Assets, the financial statements should disclose 

the following for capitalised development costs and other intangible assets: 

•

 

the amortisation method used and the expected period of amortisation 

•

 

a reconciliation of the carrying amounts at the beginning and end of the 

period, showing new expenditure incurred, amortisation and amounts 

written off because a project no longer qualifies for capitalisation 

•

 

amortisation during the period. 

In addition, the financial statements should also disclose the total amount of 

research and development expenditure recognised as an expense during the 

period. 

 

 

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