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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Chapter 21-Intangible assets (Goodwill, Research & Development)
Hi,
Please explain the answer for question in chapter 21.
Thanks
Nirmalene
I assume that you have watched my free lecture?
(1) Is not correct – although capitalised expenditure is amortised, there is no rule about it not exceeding 5 year.
(2) Is correct – capitalising it does mean showing it on the Statement of financial position.
(3) is not correct – research expenditure is never capitalised as an asset (only development expenditure, provided the criteria are met).