IASB sets objectives and direction for intangible assets project

The project was added to the IASB’s work plan following the third public consultation on the work plan for 2022-2026.  

Project objectives 

The IASB decided that the project objectives would be as follows:  

• to improve the usefulness of information that entities provide on intangible assets in their financial statements; and  
• to update IAS 38 – Intangible Assets, particularly with a view to making it more suitable for new types of intangible assets and new ways of using them.  

Project direction  

At the May 2025 meeting the IASB also clarified the project direction, identified priority topics and decided the project workflow.  

It decided to begin by exploring two streams in parallel, namely:  

• assessing users’ information needs regarding recognised and unrecognised intangible assets and associated expenditure in the financial statements; and  
• considering whether to update the definition of an intangible asset, the associated guidance and some aspects of the criteria for recognising intangible assets, by:  
  • initially using, as test cases, practical application issues relating to new types of intangible assets and new ways of using them; and then  
  • examining the effects of any potential change on the whole population of intangible assets.  

Once sufficient progress has been made on this preliminary work, the IASB decided that it will then explore: 

• the accounting treatment of intangible assets held for investment, based on their expected use or the purpose of holding the assets, and using test cases that could include, for example, carbon credits and cryptocurrencies;  
• the recognition requirements in IAS 38; and  
• ways of improving the disclosure requirements relating to recognised and unrecognised intangible assets and associated expenditure.  

Once sufficient progress has been made on this second stage, the IASB decided that it will then be necessary to decide whether to explore topics related to improving:  

• the comparability of information on acquired and internally generated intangible assets; and  
• the usefulness of information on intangible assets acquired in a business combination.  

At the same meeting, the IASB tentatively decided:  

• to explore the measurement of intangible assets and how to improve it in the context of broader topics, rather than as an individual, separate topic;  
• to consider whether to explore presenting a broader range of intangible assets in the financial statements; and  
• not to explore the accounting treatment of intangible assets covered by other standards, or the consistency of labels for intangible assets.  

The IASB will discuss the project plan at future meetings.