| 2.20 | Research and development activities |
Costs associated with research activities are expensed in profit or loss as they incur. Costs that are directly attributable to development activities are recognized as intangible assets if, and only if, all of the following have been demonstrated:
| | (i) | the technical feasibility of completing the intangible asset so that the asset will be available for use or sale; |
| | (ii) | the intention to complete the intangible asset and use or sell it; |
| | (iii) | the ability to use or sell the intangible asset; |
| | (iv) | how the intangible asset will generate probable future economic benefits; |
| | (v) | the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and |
| | (vi) | the ability to measure reliably the expenditure attributable to the intangible asset during its development. |
The amount initially recognized for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognized, development expenditure is recognized in profit or loss in the period in which it is incurred.
Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.
Gains and losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized.
