What does IAS38, Intangible Assets, state as the accounting treatment - ProProfs Discuss
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What does IAS38, Intangible Assets, state as the accounting treatment for development expenditure?



A. The balance sheet must not be overstated. All development costs relate to something which may never happen so they are written off.
B. If the entity can demonstrate all of 6 key criteria then it can can show the cost as an Intangible fixed asset on the balance sheet

This question is part of International Accounting Standards
Asked by Geronimo, Last updated: Mar 31, 2020

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2 Answers

John Adney

John Adney

Answered May 19, 2017

It should be capitalized only research costs are to be expensed

 

John Smith

John Smith

Answered Nov 10, 2016

If the entity can demonstrate all of 6 key criteria then it can can show the cost as an Intangible fixed asset on the balance sheet
 

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