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SIC 32 concludes that an entity’s own web site that arises from development and is for internal or external access is an internally generated intangible asset that is subject to the requirements of IAS 38.
The interpretation identifies four stages of the development of a website and clarifies the accounting treatment of costs at each stage:
- Planning costs should be expensed as incurred.
- Subject to certain conditions, costs associated with the application and infrastructure development stage should be capitalised as an intangible asset.
- Content development costs should be expensed as incurred.
- Operating costs should be expensed as incurred.
All amendments issued up to and including the publication date of 1 January 2023 are included within the IFRS Foundation’s latest version of the issued interpretation: 2023 Issued Standards – SIC 32. Issued amendments may, therefore, have a mandatory effective date that is later than 1 January 2023 – see below for details.
Any amendments issued after 1 January 2023 will not be included in the IFRS Foundation’s 2023 Issued Standards but will be listed below and identified as such.
See the Corporate Reporting Faculty’s annual IFRS factsheets for a more detailed discussion of recent IFRS amendments.
Amendments to References to the Conceptual Framework in IFRS Standards – amendment to SIC 32
Mandatory date: Annual periods beginning on or after 1 January 2020. Earlier application is permitted.
SIC 32 is amended to refer to the Conceptual Framework rather than the Framework in the context of recognising an expense for website hosting costs.
IFRS accounting standards referred to by SIC 32
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