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ISO 9000 certification, can we capitalize under IFRS?

Mohd Pervez (Manager Accounts) (32 Points)

24 June 2021

ISO 9000 certification cost, can we capitalize under IFRS?

Thanks,

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 24 June 2021

Those fall under research costs during initial recognition and expensed to SPLOCI when they are building an asset. This is initial recognition.

Now if this certification is directly bringing economic benefits and directly attributable to the asset which will bring in more economic benefits than its current Cashflows, it can be capitalised. This is the subsequent treatment.

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Mohd Pervez (Manager Accounts) (32 Points)
Replied 24 June 2021

Thank you..is there any specific guidelines under IFRS?

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 25 June 2021

IAS38 research costs and subsequent treatment

SGS India (2 Points)
Replied 18 April 2025

Under IFRS, the costs of obtaining ISO 9000 certification are generally expensed as incurred and not capitalized, because they do not meet the criteria for recognition as an intangible asset under IAS 38. These costs—such as consultancy, audits, training, and implementation—typically do not result in a separately identifiable resource controlled by the entity that can generate future economic benefits on its own. However, in rare cases where certification is part of a broader development project and directly attributable to bringing another asset (like software or machinery) into use, some costs may be capitalized, but this requires strict justification and clear documentation.