Satisfying the reliable-measurement criterion
What the criterion requires
Reliable measurement is one of the six conditions that must all be met for development expenditure to be capitalised. It asks whether the expenditure attributable to the intangible during its development can be measured reliably. For many internally generated intangibles this is the hardest condition, because the cost is diffuse: staff time split across projects, shared compute, overhead. The amount ends up estimated, and an estimate is easier to challenge IAS 38 §54-62.
Why per-request data clears it
Metered token spend is measured, not estimated. Each request carries a priced cost, so the development-phase total is a sum of actual transactions rather than an apportionment. This is the structural advantage token capitalisation has over most internally generated intangibles: the measurement is built from the bottom up out of records the auditor can sample and re-price.
Measured versus allocated
The line to hold is between a measured amount and an allocated one. Summing tagged development-phase rows is measurement. Taking a monthly provider invoice and spreading it across projects by headcount or usage share is allocation, and it reintroduces exactly the estimation risk metering removes. Where allocation is unavoidable, say for a shared evaluation harness, it should be disclosed as such and kept modest relative to the directly measured base.
What fails the test
- Spend with no per-request detail retained, leaving only an invoice total.
- Amounts reconstructed after the fact from budgets rather than metered rows.
- Broad allocations of shared infrastructure dressed up as attribution.