Accounting of Internally Created Intangible Assets

[Issa Hamisi]

Dear Colleague,
I will need your advice in this Matter as whether, I can call it an internal generated internal asset or not. We have commissioned a consultant to set for us an Enterprise Risk platform for Operation Risk, Market Risk and Credit Risks. The consultant have done their jobs & created various policies & Manuals & , provided various template which we have adopted. The consultant have further proposed for us to purchase some of the software like BI tools. AML etc of which we have implemented the purchase as recommended. Taking the Value created through this consultant, & the Costs incurred in total can we capitalize these consultant costs as Intangible Assets?

 

[Werner Reisacher]

No, you cannot. What you can capitalize is a software you buy if your local accounting rules permit, depending on the price you paid for the software.