Standards-anchored to primary IFRS and FASB text. Worked figures are illustrative. Not accounting advice.
TCTokenCapitalisation
Standard, IFRS

IAS 38 Intangible Assets

Standard
IAS 38 governs the recognition, measurement, amortisation and disclosure of intangible assets, including internally generated ones. For token capitalisation it supplies the recognition test for development-phase spend IAS 38 §54-62, the amortisation rules for life and method IAS 38 §97 IAS 38 §98, and the carrying-amount reconciliation to disclose IAS 38 §118.

Recognition of internally generated intangibles

IAS 38 splits an internal project into a research phase and a development phase. Research is always expensed. Development expenditure is capitalised only when the entity can demonstrate all six conditions: technical feasibility, intention to complete, ability to use or sell, generation of probable future economic benefits, availability of resources, and reliable measurement of the attributable expenditure IAS 38 §54-62. This is the gate every capitalisable token belongs behind.

Amortisation: life and method

A finite-life intangible is amortised on a systematic basis over its useful life, with amortisation beginning when the asset is available for use IAS 38 §97. The method must reflect the pattern in which the asset's future economic benefits are expected to be consumed, and straight-line is used where that pattern cannot be determined reliably; a revenue-based method is not appropriate in the general case IAS 38 §98.

Residual value and review

Residual value is assumed zero unless a third-party purchase commitment or an active market exists IAS 38 §100, and the amortisation period and method are reviewed at least each financial year-end, with changes treated prospectively as changes in estimate IAS 38 §104. For a fast-obsoleting AI asset the year-end review is substantive.

Disclosure

For each class of intangible, IAS 38 requires disclosure of useful lives or amortisation rates, the methods used, gross carrying amount and accumulated amortisation, and a reconciliation of the carrying amount from the beginning to the end of the period showing additions, amortisation, impairment losses and other movements IAS 38 §118. This reconciliation is the roll-forward the site is built to produce.