• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Intangible asset

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Intangible asset

  • This topic has 5 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • October 1, 2021 at 7:53 am #636804
    James124
    Participant
    • Topics: 166
    • Replies: 138
    • ☆☆☆

    Research costs follow accrual concept but do not follow matching concept.
    Accrual concept in a way that we expense off research costs in the year incurred. However, lacks matching concept, as we charge in PNL and after some time after doing development and making the product we sell the product. Therefore, expenditure of research does not match sales.
    Am I right, tutor?

    October 1, 2021 at 4:14 pm #636827
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54724
    • ☆☆☆☆☆

    You are right, but the reason for it is that research does not always end up with a new product and therefore there might never be any income to match the expense against. Whereas with development costs (subject to the conditions) there will be income and therefore there is something to match the cost against.

    October 1, 2021 at 4:42 pm #636833
    James124
    Participant
    • Topics: 166
    • Replies: 138
    • ☆☆☆

    Right tutor. And tutor, one more query, if our research is successful so will we capitalise those research cost or no? I watched your lectures you said that research costs are expense for us that is why just confirming that in every condition we will make it revenue expenditure?

    October 1, 2021 at 5:11 pm #636836
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54724
    • ☆☆☆☆☆

    No, we will not capitalise.

    Once it has been charged as revenue expenditure in the SOPL, then that is the end of it 🙂

    October 1, 2021 at 8:15 pm #636839
    James124
    Participant
    • Topics: 166
    • Replies: 138
    • ☆☆☆

    Thank you, Tutor.

    October 2, 2021 at 9:05 am #636855
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54724
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Intangible asset’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • ParthivP on FA Chapter 5 Questions IAS 37 – Provisions, Contingent Liabilities and Contingent Assets
  • Ken Garrett on Marketing – ACCA Accountant in Business (AB)
  • Relebohile10 on CIMA P2 Chapter 1 Test
  • AhmedRiflan on Business Documentation – ACCA Financial Accounting (FA) lectures
  • AhmedRiflan on Marketing – ACCA Accountant in Business (AB)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in