Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › development costs
- This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
- AuthorPosts
- December 8, 2021 at 7:45 am #643059
hi all
can i know the correct answer for this question my answer is 6500 but not sure
Question . Enterprise Co is heavily involved in developing a new production process. In the year to 31 March 20X1 the amount of expenditure incurred on development costs could be analysed as follows:
1 April 20X0 to 30 September 20X0 18,400
1 October 20X0 to 31 March 20X1 6,500
24900
On 1 October 20X0 Enterprise Co demonstrated that the production process met the recognition criteria of IAS 38 Intangible Assets. The amount estimated to be recoverable from the process is €21,000.
At what amount should the production process be recognised as an intangible asset at 31 March 20X1 in accordance with IAS 38?
1- 6500
2- 18400
3- 21000
4- 24900December 8, 2021 at 8:09 am #643065Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – they have answers and explanations.
Your answer seems to be correct.
- AuthorPosts
- You must be logged in to reply to this topic.