What should a company do if it cannot accurately value an internally developed intangible asset?

Recording an internally developed intangible asset at zero value is appropriate when a company cannot accurately value the asset. This approach aligns with accounting principles that prioritize reliability and verifiability in financial reporting. If an asset cannot be reliably measured, it should not be included on the balance sheet, as this could mislead investors and other stakeholders about the company's financial position.

This practice reflects a cautious stance that ensures that only assets with a measurable and reliable value are recognized. Conversely, estimating its value based on similar assets, assigning a nominal value, or listing it as an expense could imply that the company has determined some quantifiable worth or financial impact, which might not accurately reflect the asset’s true economic value, especially if original development costs do not capture future potential or benefits. Hence, the most prudent action is to recognize the limitations in valuing the intangible asset by assigning it a zero value.