EVA – ACCA Article 2011- First Part

Dear Sir / Madam
1) Research and Development costs of 500,000 were incurred during each of the years 2009 and 2010 on project Z. These Costs were expensed in the Income Statement as they did not meet the requirements of financial reporting standards for capitalization. Project Z is not compete yet.
Treatment – NOPAT
2010 2009
NOPAT
Add Research Costs Expensed +500 +500

Treatment – Capital
2010 2009
CAPITAL
Add Capitalization of Research & Development +500 0

2) 3) The Company incurred Non Cash Expenses of 15000 in both years
Treatment – NOPAT
2010 2009
NOPAT
Add Non Cash Expenses 15 15

Treatment – Capital
2010 2009
CAPITAL
Add Non Cash Expenses during 2009 15 0
My doubt is why Capital Account for 2009 year was not adjusted in the above cases as general rule is to add back in Profit and Capital when the expenses on these lines get incurred.
Kindly help

Deepak