(1) It is technically feasible to complete this intangible asset so that it can be used or sold.
When judging whether this condition is met or not, an enterprise should take the present achievements as the basis, indicating that the technical conditions needed for further development on this basis have been met, and there are basically no technical obstacles or other uncertainties. When judging, the enterprise should provide relevant evidence and materials.
(2) There is an intention to complete the intangible asset and use or sell it.
When developing a product or patented technology product, whether to use or sell it is usually determined according to the purpose or intention of R&D activities decided by the management authorities, that is, after the R&D project is fruitful, whether to sell or use it for personal use and the economic benefits generated by the use should be determined by the intention of the management authorities.
Therefore, the management authority of the enterprise should be able to explain the purpose of holding the intangible assets to be developed, and have the possibility of completing the development of the intangible assets and enabling them to be used or sold.
(3) The ways in which intangible assets generate economic benefits, including the ability to prove that the products produced by using the intangible assets exist in the market or that the intangible assets themselves exist in the market, and that the intangible assets will be used internally, shall prove their usefulness.
(4) Having sufficient technical, financial and other resources to support the development of the intangible assets, and having the ability to use or sell the intangible assets.
This condition mainly includes:
① It is technically reliable to complete the development of intangible assets. The technical reliability of developing intangible assets and making them into achievements is the key to sustainable development activities. Therefore, there must be conclusive evidence to prove that the enterprise has sufficient technical support and technical ability to continue to develop this intangible asset.
(2) financial resources and other resources support. The support of funds and other resources is the economic basis for the development of this intangible asset. Therefore, the enterprise must be able to prove whether the financial and other resources needed to complete the development of the intangible assets can support the completion of the intangible assets.
(3) It can prove the technology, capital and other resources needed by the enterprise in the development process, as well as the relevant plans for the enterprise to obtain these resources.
For example, if the enterprise's own funds are insufficient to provide support, is there external financial support, such as a statement that financial institutions such as banks are willing to provide necessary funds for the development of the intangible assets and are capable of using or selling the intangible assets.
(5) Expenditure attributable to the development stage of the intangible assets can be reliably measured.
The expenses incurred by an enterprise for development activities shall be accounted for separately, such as the salary of the developer and the cost of materials.
When an enterprise is engaged in multiple development activities at the same time, if the expenses incurred are used to support multiple development activities at the same time, they should be shared among the development activities according to certain standards. If it cannot be clearly allocated, it should be recorded as an expense and included in the current profit and loss, regardless of the cost of human development activities.