Intangible Assets & R&D — ASC 730/350 vs IAS 38

The headline difference is development costs: US GAAP generally expenses them; IFRS capitalizes them once criteria are met. For an R&D-heavy multinational this is a recurring earnings and asset-base divergence.

Area	US GAAP (ASC 730 / 350)	IFRS (IAS 38)
Research costs	Expensed as incurred	Expensed as incurred
Development costs	Expensed as incurred	Capitalized once the six criteria are met (technical feasibility, intent, ability, future benefits, resources, measurability)
Software	Special rules — internal-use (ASC 350-40), for-sale (ASC 985-20)	Within IAS 38 (development criteria)
Revaluation model	Not available	Available where an active market exists (rare)

• The six development-capitalization criteria (IFRS) — when they are met.
• Useful life — finite vs indefinite; indefinite-life intangibles are not amortized but are impairment-tested.
• Impairment — see PP&E and Impairment for the ASC 360 vs IAS 36 mechanics.

• SAP implementation: capitalizable development via WBS / Assets under Construction settling to an intangible asset in SAP Asset Accounting (FI-AA) — parallel areas expense under US GAAP while capitalizing under IFRS.

An educational reference and original synthesis — not investment advice, and not a substitute for the standard or for professional accounting guidance. For authoritative measurement detail, consult ASC 730 / ASC 350 / IAS 38 directly.