The project builds on research done by national standard setters on the topic:

• Australian Accounting Standards Board (AASB):
  • Intangible Assets: Reducing the Financial Statements Information Gap through Improved Disclosures (March 2022); and
  • Australian Listed Entities: Recognised intangible assets and key audit matters (May 2023, link to AASB website); 
• EFRAG
  • Better Information on Intangibles. Which is the best way to go? (April 2023);
• UK Endorsement Board:
  • Accounting for Intangibles: UK Stakeholders’ Views (March 2023);
  • Accounting for Intangibles: A survey of users’ views (expected April 2024, already discussed at the April 2024 IFASS meeting); and
  • Accounting for Intangibles: A quantitative analysis of UK Financial Reports (expected April 2024, already discussed at the April 2024 IFASS meeting);
• Other national standard setter research:
  • Canadian Accounting Standards Board — Survey of the types of intangibles prevalent in the Canadian market (research report outstanding);
  • UK Financial Reporting Council — Business Reporting of Intangibles: Realistic proposals (January 2021, link to FRC website); and
  • New Zealand External Reporting Board — Meeting users’ needs, recognition and disclosure of intangible assets (September 2023, research discussed at the September 2023 IFASS meeting).

The new project acknowledges that, in the third agenda consultation, stakeholders highlighted deficiencies in the reporting of intangible assets and raised matters relating to all aspects of IAS 38 Intangible Assets, including its scope, its recognition and measurement requirements (including the difference in the accounting for acquired and internally generated intangible assets), and the adequacy of the information companies are required to disclose about intangible assets.

In response to that feedback and building on the research of the national standard setters, the IASB has now started a project to comprehensively review the accounting requirements for intangibles. The project will assess whether the requirements of IAS 38 remain relevant and continue to fairly reflect current business models or whether the IASB should improve the requirements. The IASB acknowledges that a comprehensive review of IAS 38 will be a large and complex project for the IASB and its stakeholders. 

Although the title of this project refers to intangible assets, the IASB will also consider whether the project should be limited to accounting for and disclosing information about financial statement elements or whether the project should aim to address intangible items more broadly.

The IASB has released a press release noting the launch of the project.