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SIC-32 clarifies that a website developed by an entity using internal expenditure, whether for internal or external access, is an internally generated intangible asset as defined in IAS 38. Such a web site can be recognised as an intangible asset if, and only if, in addition to complying with the general requirements of IAS 38, the entity can demonstrate how its web site will generate probable future economic benefits. Further, all expenditure to develop a web site solely or primarily for promoting and advertising an entity’s own products and services is recognised as an expense when incurred.
Standard history
In March 2002 the International Accounting Standards Board issued SIC‑32 Intangible Assets—Web Site Costs, which had originally been developed by the Standing Interpretations Committee of the International Accounting Standards Committee.
Other Standards have made minor consequential amendments to SIC‑32, including IFRS 15 Revenue from Contracts with Customers (issued May 2014), IFRS 16 Leases (issued January 2016) and Amendments to References to the Conceptual Framework in IFRS Standards (issued March 2018).
