Ann: Appendix 4E & 30 June 2018 Financial Report, page-56

I wrote; " intangible assets shouldn't be capitalised period..." on AN AJX THREAD and the word "shouldn't" clearly identifies IT'S AN OPINION, so I assumed you would be bright enough to connect the dots.

But here's the issue, what are they capitalising? Is it patent costs? is it labour costs? is it the dreaded GOODWILL ? remember they capitalise as they are supposedly predicting a FUTURE REVENUE from the cost.
So that's my question to you, you make some big calls about what's right or wrong but you don't know what it is, do you? You also don't know what revenue they predict it will earn in the future, do you?
That's because the company has not detailed it, and it's about $700k US or $970k AUD (approx) so it's not chicken feed. It's coming off the costs R&D in the balance sheet to make the figures look better, it's legal but tricky accounting.

The company needs to itemise the $700k (approx) so that shareholders understand. Meanwhile here's another take on this growing habit of "top shelf" Directors capitalising intangibles....

"....However, self-created intangible assets may be capitalized under commercial law. They do not have to actually be activated, there is a right for you to make a choice. If one does not want to book all costs at the expense of a good operating result and thus at the expense of the company's own capital, because you want to avoid an application for insolvency , or to make the company look good on the balance sheet, the capitalizable costs have to be detected in the first place. This is not easy at all...."

and here's some general UK guidelines, most international standards are similar:

1. The technical feasibility of completing the intangible asset so that it will be available for use or sale.
2. Its intention to complete the intangible asset and use or sell it.
3. Its ability to use or sell the intangible asset.
4. How the intangible asset will generate probable future economic benefits. Among other things, the entity can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset.
5. The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.
6. Its ability to measure reliably the expenditure attributable to the intangible asset during its development.

And the list goes on... that's why it's important to carefully read the auditors notes, which for your education I print again: