According to NCRF 6, an intangible asset is an identified non-monetary asset without physical substance. And that must meet the following criteria to be recorded in the balance sheet:
“Expenses with development projects may be considered as a tax expense in the tax period in which they are incurred, even if the elements resulting from them are recognised as intangible assets in the financial statements of the taxpayers.” (nr. 1 of art. 32 of the CIRC).
No intangible assets resulting from research should be recognised in the balance sheet.
Research expenditure shall be recognised as an expense as soon as incurred.
Under NCRF 6 an intangible asset arising from development should be only if the entity can demonstrate the following: