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An acquired in-process research and development project is recognised in a business combination:
AOnly if regulatory approval is in hand at the acquisition date
BNot at all — IPR&D is subsumed into goodwill
COnly if revenue has been generated by the project
DAs a separately identifiable intangible asset if it meets the definition of an asset and is identifiable (separable or arising from contractual/legal rights), with recognition criteria deemed met under Ind AS 38
Answer & Solution
Correct answer: D. As a separately identifiable intangible asset if it meets the definition of an asset and is identifiable (separable or arising from contractual/legal rights), with recognition criteria deemed met under Ind AS 38
Ind AS 38 paragraph 33 deems both general recognition criteria satisfied for intangibles acquired in a BC. IPR&D is recognised separately if it meets the asset definition and is identifiable — separately from regulatory approval status or revenue.
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