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Sir, when dealing with capitalising development costs, should i note down like it must meet all of the criteria under IAS 38 intangible Assets?
whenever i write down IAS regulation to verify those kinds of risks, it would be marked as well?
To show a T&F view, the FS should comply with accounting standards. So the key to properly capitalising R&D is IAS 38 (though you don’t need to know its name or number). Depending on the marks/time you might be able to mention each of the criteria. If stuck for time you could say something like:
Verify that R&D capitalised complies with the relevant accounting standard. For example, is the project technically feasible? If finance available to allow it to be completed.
That’s a better answer than simply saying:
Examine the R&D charges capitalised to ensure this is correct.
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