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Development cost

This topic has 2 replies, 2 voices, and was last updated 11 months ago by mrjonbain.

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August 22, 2021 at 12:50 pm #632529
kuttan
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Why development expenditure recognized as an expenditure in SOPL cannot be subsequently be reinstated as an asset in SOFP?
August 22, 2021 at 6:24 pm #632569
mrjonbain
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Basically if development expenditure met the criteria for capitalisation it should have been capitalised and not expensed. If it didn’t meet all the criteria and was correctly expensed in profit and loss then it should stay that way. IAS 38 specifically prohibits capitalising expenditure that didn’t previously meet criteria to be capitalised. Hope this helps.
August 22, 2021 at 6:29 pm #632570
mrjonbain
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Following article might help you-

https://www.accaglobal.com/ca/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/technical-articles/rd.html
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