An intangible asset is an identifiable non-monetary asset without physical substance.
Research and development expenditure
Definition
Research -investigation undertaken to gain new scientific knowledge and understanding
Development -application of research findings before the start of the commercial production or use
Accounting treatment
Research costs - write off to income statement
Development costs - capitalize if criteria met
Note: Amortize capitalized development costs over useful life
Download ACCA Technical Article on Research and development expenditure
No comments:
Post a Comment