BC1 This Basis for Conclusions summarises the International Accounting Standards Board’s considerations in reaching the conclusions in IAS 38 Intangible Assets. Individual Board members gave greater weight to some factors than to others.

BC2 The International Accounting Standards Committee (IASC) issued the previous version of IAS 38 in 1998. It has been revised by the Board as part of its project on business combinations. That project has two phases. The first has resulted in the Board issuing simultaneously IFRS 3 Business Combinations and revised versions of IAS 38 and IAS 36 Impairment of Assets. Therefore, the Board’s intention in revising IAS 38 as part of the first phase of the project was not to reconsider all of the requirements in IAS 38. The changes to IAS 38 are primarily concerned with:

(a) the notion of ‘identifiability’ as it relates to intangible assets;

(b) the useful life and amortisation of intangible assets; and

(c) the accounting for in‑process research and development projects acquired in business combinations.