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Hi Chris,
Please can you clarify something?
In Eg.3 on Chapter 6 of the notes (GKS). We recognise 200,000 of development costs in the SFP. Does this mean we are capitalising it?
As the product is not ready to sell until mid 20×6, I thought it did not fit into the criteria i.e ready to sell/use.
But perhaps I am getting mixed up a little between different topics….Great lectures so far by the way.
Many thanks
BillyHi,
Glad you’re enjoying the lectures.
Yes, we’re capitalising the costs. The criteria is not that the intangible is being used but that it can be used or sold in the future, which it will be.
It is effectively showing that there will be probable future economic benefits.
Thanks
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