IAS 38 demands that an enterprise should recognize the intangible assets, whether bought or self-created (at a given cost), and simply if it is possible that the potential financial benefits which can be attributed to the asset would flow to the project and the fee of that asset is measurable reliably. This condition applies whether an intangible property is to be generated internally or obtained externally. IAS 38 comprises further recognition criteria for internally created intangible assets. The prospect of future financial benefits should be founded on rational and manageable assumptions on circumstances that would exist in the lifespan of that asset.
This criterion would always be considered satisfied for the intangible assets which are obtained separately or in a combination of business. If this recognition criterion is not properly met and if any of the intangible assets cannot meet the definition and all the criteria for this recognition, IAS 38 demands that the expenditure on such an asset should be recognized as an expenditure if it is met. In this case, Carton football club needs to be certain that Chris Judd will not leave the club in the near future to be considered as an asset. In this regard, I do not think Chris Judd is an asset since the benefits that the company gets from him will end when he leaves the club. Therefore, he should be treated just like any other employee of the club.