BC78 The Board considered the following issues in relation to in‑process research and development (IPR&D) projects acquired in a business combination:

(a) whether the proposed criteria for recognising intangible assets acquired in a business combination separately from goodwill should also be applied to IPR&D projects;

(b) the subsequent accounting for IPR&D projects recognised as assets separately from goodwill; and

(c) the treatment of subsequent expenditure on IPR&D projects recognised as assets separately from goodwill.

BC79 The Board’s deliberations on issue (a), although included in the Basis for Conclusions on IFRS 3, are also, for the sake of completeness, outlined below. The Board did not reconsider as part of the first phase of its Business Combinations project the requirements in the previous version of IAS 38 for internally generated intangibles and expenditure on the research or development phase of an internal project. The Board decided that a reconsideration of those requirements is outside the scope of this project.