Development-phase evidence
To capitalise under IAS 38, the file must evidence each of the six recognition criteria with contemporaneous artefacts, not after-the-fact assertions. This procedure maps each criterion to the artefact a Big-4 senior typically accepts, so the recognition date and the carrying amount are both defensible.
The evidence map
Work each criterion in turn and attach the artefact. The evidence must be contemporaneous with the recognition date; a document created months later to justify a prior period is weak.
| § | Criterion | What must be shown | Evidence artefact |
|---|---|---|---|
| 01 | Technical feasibility | Show the model can be completed to specification. | Prototype metrics on held-out data; design docs |
| 02 | Intention to complete | Show management intends to finish and use it. | Board or steering-committee approval minutes |
| 03 | Ability to use or sell | Show a route to deploy or sell the asset. | Deployment plan; integration design |
| 04 | Probable economic benefits | Show probable future benefit. | Business case; usage or cost-saving model |
| 05 | Adequate resources | Show resources exist to complete it. | Approved budget; staffing and compute plan |
| 06 | Reliable measurement | Show attributable cost can be measured. | Timesheets; cost-allocation and compute logs |
Scroll sideways for all columns →
The two that most often fail review
Technical feasibility fails where the only evidence is optimism rather than a working prototype meeting targets. Reliable measurement fails where no contemporaneous time-allocation exists, so the attributable cost cannot be supported. Fix both before year-end, not during the audit.
- S1IAS 38 Intangible Assets, IFRS Foundation (IFRS). https://www.ifrs.org/issued-standards/list-of-standards/ias-38-intangible-assets/