What are the criteria for capitalizing development expenditure under IAS 38?

Under IAS 38 Intangible Assets, research costs must always be expensed. Development costs must only be capitalized when all six PIRATE criteria are met:

• Probable future economic benefits will flow to the entity.
• Intention to complete the intangible asset for use or sale.
• Resources (technical, financial, and others) are available to complete it.
• Ability to use or sell the intangible asset.
• Technical feasibility of completing the asset.
• Expenditure can be measured reliably during its development.