Development cost — OpenTuition Forums

ASalawi sayed4y ago

Hello Sir, when the development cots is to be capitalised then what is the next step is that should be a non curtrent asset. why we hear sometimes that when it is to capitalised it will become non current intangible asset. which one is the correct one. Plesae clarify Sir, Thanks

P2-D2Tutor4y ago#1

Hi, The development costs are capitalised as part of intangible non-current assets. Thanks

ASalawi sayed4y ago#2

Hi, So when it will become tangible? For examble when it relates to a tangible project like new tool machine ,this is a tangible asset so why the developmement cost will not be tangible? Thanks,

P2-D2Tutor4y ago#3

Hi, It would be capitalised as normal and depreciated but the depreciation charge would not go through profit or loss during the development phase and instead would be capitalised as part of the intangible. Thanks

ASalawi sayed4y ago#4

So where the depreciation of developments cost will go during the development phase. Thanks Sir.

P2-D2Tutor4y ago#5

The costs get capitalised instead of being expensed. Thanks

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