Vocabulary

The vocabulary of token capitalisation

Every term the discipline uses, defined once and linked to the page where it does its work. The three ownable terms, token capitalisation, the token ledger and capitalisable token spend, have their own definition pages. Standard-defined terms carry the paragraph that governs them.

Token capitalisation IAS 38: The discipline of measuring, carrying and reporting capitalised AI and token spend on the balance sheet as a finite-life intangible asset, across the measure, carry and report phases.
Token ledger: The request-level record of metered token consumption, tagged to a build, that serves as the auditable evidence base beneath a general-ledger intangible entry.
Capitalisable token spend IAS 38 §54-62: Token spend incurred in the development phase of an internally generated intangible that meets all recognition criteria, as distinct from research-phase or run-phase spend, which is expensed.
Nexus of cost IAS 38: The evidence chain connecting tagged token consumption to a specific recognised asset, demonstrating that the cost is directly attributable to the intangible.
Reliable measurement IAS 38 §54-62: The recognition criterion requiring that expenditure attributable to the intangible during its development can be measured reliably, met here at the individual-request level.
Research and development phases IAS 38 §54-62: The IAS 38 split between research (always expensed) and development (capitalised only when six conditions are all met), applied to token spend.
Initial measurement IAS 38: Establishing the carrying amount at which a token-built intangible first enters the balance sheet, comprising directly attributable cost from the start to the stop date.
Useful life IAS 38 §97: The period over which a finite-life intangible is expected to be available for use, driving the amortisation period; reviewed at least each year-end.
Amortisation IAS 38 §98: The systematic allocation of the amortisable amount of a finite-life intangible over its useful life, on a basis reflecting the pattern of benefit consumed.
Residual value IAS 38 §100: The estimated disposal proceeds at the end of useful life, assumed to be zero for an intangible unless a third-party purchase commitment or active market exists.
Impairment IAS 36 §12: A carrying amount that exceeds recoverable amount; IAS 36 requires an indicator review and, where triggered, a write-down.
Recoverable amount IAS 36 §18: The higher of an asset's fair value less costs of disposal and its value in use, the ceiling at which the asset may be carried.
Value in use IAS 36 §30: The present value of the future cash flows expected from an asset, one of the two measures of recoverable amount under IAS 36.
Carrying amount IAS 38 §118: The amount at which an asset is recognised after deducting accumulated amortisation and impairment losses; its movement is disclosed in the paragraph 118 reconciliation.
Carrying-value roll-forward IAS 38 §118: The reconciliation of opening to closing carrying amount showing additions, amortisation charge, impairment losses and other movements per class of intangible.
Probable-to-complete threshold ASU 2025-06: The US GAAP threshold introduced by ASU 2025-06 that replaces the ASC 350-40 project-stage bright lines for when capitalisation of internal-use software costs begins.