Intangible Assets

The IASB met on 22 May 2025 to discuss the objectives and direction of the project.

Project objectives (Agenda Paper 17A)

The IASB decided the objectives of the project are:

1. to improve the usefulness of information entities provide about intangible items in their financial statements; and
2. to update IAS 38 Intangible Assets, in particular to make it more suitable for newer types of intangible items and new ways of using them.

All 14 IASB members agreed with this decision.

Project direction—Prioritisation of broad groups of topics (Agenda Paper 17B)

The IASB decided: 

1. to begin work on the project by exploring two initial streams in parallel, namely:
   1. assessing user needs for information about recognised and unrecognised intangible assets and expenditure associated with them in the financial statements; and
   2. considering whether to update the definition of an intangible asset, associated guidance and some aspects of the recognition criteria, by initially using, as test cases, application issues related to newer types of intangible assets and new ways of using them; and then considering the effects of any potential amendments on the broader population of intangible assets;
2. to explore, once work on the groups of topics listed in (a) has progressed sufficiently:
   1. accounting for intangible assets held for investment, based on the intended use or purpose of holding an asset and using test cases that could include some carbon credits and cryptocurrencies;
   2. broader aspects of the recognition requirements in IAS 38; and
   3. improvements to the disclosure requirements related to recognised and unrecognised intangible assets and the expenditure associated with them; and
3. to consider whether to explore, once work on the group of topics listed in (b)(ii)–(iii) has progressed sufficiently, topics related to improving:
   1. the comparability of information about acquired and internally generated intangible assets; and 
   2. the usefulness of information about intangible assets acquired in a business combination.

All 14 IASB members agreed with this decision.

The IASB also tentatively decided:

1. to explore improving measurement of intangible assets in the context of work on other groups of topics rather than as a separate topic;
2. to consider whether to explore reporting a broader range of intangible items in the financial statements once work on other groups of topics has sufficiently progressed; and
3. not to explore:
   1. accounting for intangible assets covered by other IFRS Accounting Standards; or
   2. consistency of labels for intangible items.

All 14 IASB members agreed with this decision.