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development expenditure

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › development expenditure

  • This topic has 1 reply, 2 voices, and was last updated 14 years ago by MikeLittle.
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  • November 26, 2010 at 11:56 pm #46286
    jatinkalra
    Member
    • Topics: 12
    • Replies: 11
    • ☆

    sir
    if the profit from the expenditure we are doing on development is expected to be lower than its cost…then will we capitalize the expense or not?
    regards
    jatin

    November 27, 2010 at 10:48 am #71793
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23307
    • ☆☆☆☆☆

    Extent of deferral should be restricted to the amount which we will assuredly recover. Any excess expenditure beyond assured recovery should be expensed

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