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Hi Mr Mike.in the BPP study text is as exam focus point :make sure you know the capitalisation criteria. Could you please let me know witch it is?thank you
The criteria are identified in the course notes! Have you not read the course notes?
Check them out and, if you can’t find them, post again
development costs capitalise if it satisfies the criteria:
defined project
environmentally satisfactory
feasible technically
expenses clearly allocable
reliable measurement
resources exist to carry the project through
extent of deferral restricted to assured recovery
do not write back any costs previously expensed,
Do you mean only these?Not only must it satisfy the definition of an asset according to IAS 16 (a resource controlled by the entity ……..) but specifically it should give rise to future economic benefit and be reliably measurable
Does the BPP text not give you those capitalisation requirements / criteria?
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