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Cashflow -Deferred development expenditure

This topic has 2 replies, 3 voices, and was last updated 8 years ago by adnan32.

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August 17, 2017 at 5:00 pm #402233
javeriaaijaz
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The past paper cashflow question Monty shows deferred development expenditure as an outflow of 1200 under investing activites. Could you pls explain how thats 1200 and why is it put as an outflow? Or if you dont have the question how do we in general treat deferred development expenditure and its associated amortization? Thank you.
August 26, 2017 at 5:47 am #403584
robinson
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I didn’t understand either why monty add 200 more.
August 26, 2017 at 7:43 am #403594
adnan32
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defered expenditure incurred was 1200
1000 given in fig is after deducting amortization therefore total cost incurred was 1200
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