Intangible asset
An intangible asset is an identifiable non-monetary asset without physical substance that the entity controls and from which future economic benefits are expected. It is recognised only if those benefits are probable and its cost can be measured reliably. A trained AI model can meet this definition under IAS 38.
The three tests: identifiability, control, benefit
An asset is identifiable if it is separable or arises from contractual or legal rights; control means the entity can obtain the benefits and restrict others' access; and future economic benefits may be revenue or cost savingsIAS 38§12. A model the entity has built and controls, and uses to reduce cost, can satisfy all three.
What is excluded
Internally generated goodwill, brands, mastheads and similar items are not recognised because their cost cannot be distinguished from developing the business as a wholeIAS 38§63. A trained model differs: where its attributable development cost is measurable, it can be recognised.
- S1IAS 38 Intangible Assets, IFRS Foundation (IFRS). https://www.ifrs.org/issued-standards/list-of-standards/ias-38-intangible-assets/