Final answer:
Outlays on internally generated intangible assets, mainly computer software, should be capitalized when the project is nearing completion. Prior to that point, outlays should be expensed as incurred. Once the project is complete, capitalization should cease. Training and maintenance costs should be expensed.
Step-by-step explanation:
Outlays on internally generated intangible assets, mainly computer software, should be capitalized when the project is nearing completion. Prior to that point, outlays should be expensed as incurred. Once the project is complete, capitalization should cease. Training and maintenance costs should be expensed.
For example, if a company is developing a new software program, the costs incurred during the initial stages of development, such as coding and designing, should be expensed as incurred. However, when the project is nearing completion, the costs associated with final testing and implementation should be capitalized as an intangible asset on the company's balance sheet.
Therefore, the statement is true. Outlays on internally generated intangible assets should be capitalized when the project is nearing completion and expensed as incurred prior to that point. Training and maintenance costs should be expensed.
Learn more about capitalization of internally generated intangible assets