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The second approach is discovery as a recognition event approach. This approach is a departure from accountants’ customary reference to discrete exchange transactions and external events. It is also consistent with the FASB and IASC conceptual framework because the cost will only be capitalized after it is arriving at technological feasibility (an identification point). However, some critic that the identification point is too flexible and the recognition can be delayed till remaining costs are immaterial. These weaknesses can largely be overcome based on the identification with either value-based measurement or a retroactive capitalization because a manager could not be avoided to recognize assets at some point.

The third approach is in-process assets approach. This approach divided into two view which are traditional view and modern view. In traditional view, in-process account is a device for accumulating the costs of something that will eventually become an asset. This means that the in-process account itself would not be recognized as an asset. For example, a particular cost will be charged as expenditure if there is sufficient uncertainty that the cost will eventually be associated with an asset. While, in modern view, work in process, especially in-process research and development (R&D) costs will be recognized as an asset in its own right.

The measurement of internally generated intangible assets should have a relevant attributable measurable with sufficient reliability, provide neutral and trusted information that can assist users of financial statement in their decision. There are different types of measurement. First, is the type of cost-based measurements that can be used for tangibles that have determinable costs. However, there might be cross-fertilization between the products or multigenerational intangible. Besides that, the inadequacy of system to compute the cost and the questionable of the relevancy of the cost-based measurement are among the limitations. In addition, some of the useful life of the intangible assets is indefinite. The intangible asset can also be measured using fair value. However, the rare of observed transactions on transfer of intangible assets cause the problem of estimation of fair value. Other than fair value, there are other measurement methods which more to emphasis on entity-specific value such as entity-specific measures or value in use which is not recognized by FASB. According to IAS 36, the definition of the value-in-use is “the present value of estimated future cash flows expected to arise from the continuing rise of an asset and from its disposal at the end of its useful life本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。