Internally generated customer lists cannot typically be recorded as assets on a balance sheet. According to Accounting standards like the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP), for an intangible asset to be recognized, it must be identifiable, which means it must be separable or arise from contractual or other legal rights. Additionally, future economic benefits must be probable, and the cost must be reliably measurable.
A customer list developed internally does not usually meet these criteria because its value cannot be reliably measured, and it does not arise from an exchange transaction. Such lists are often seen as part of the internally developed goodwill of the business rather than an identifiable asset. However, if a customer list is acquired through a business combination or purchased, and it is separable and can be measured reliably, then it may be recognized as an intangible asset.
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