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The development of a product sounds like (similar to) processing of the raw materials to prepare the products for resale. If so, why is “Development” considered a non-current asset?
Raw materials and stock are usually converted into cash in short term by a business although exceptions exist. For example, maturing alcoholic spirits. Development expenditure is more like investment in fixed plant and machinery in the sense that economic benefit is intended to be obtained over time. It is therefore almost certainly to be considered a non current asset.
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