IAS 38 - Intangible Assets is an International Accounting Standard that establishes the accounting treatment for identifiable, non-monetary assets without physical substance. These assets include things like computer software, patents, copyrights, trademarks, certain licenses, and goodwill. The standard specifies criteria for recognition, measurement, and disclosure of intangible assets, ensuring that financial statements provide relevant and reliable information.

For example, a company developing a new software product may capitalize the development costs as an intangible asset if it meets the recognition criteria of IAS 38. This process includes demonstrating the future economic benefits expected from the software and the ability to measure its costs reliably. After recognition, the intangible asset is usually amortized over its useful life and assessed for impairment losses if circumstances indicate a potential decline in value.

IAS 38 ensures consistency and comparability of reported intangible assets across entities, aiding stakeholders in making informed decisions based on a company's economic resources. Terms like impairment, amortisation, and fair value are closely related to the principles of IAS 38.