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Development cost

This topic has 5 replies, 2 voices, and was last updated 2 months ago by P2-D2.

Viewing 6 posts - 1 through 6 (of 6 total)

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May 13, 2022 at 2:39 pm #655550
alawi sayed
- Topics: 138
- Replies: 149
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
May 16, 2022 at 8:11 pm #655837
P2-D2
Keymaster
- Topics: 4
- Replies: 6165
Hi,

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

Thanks
May 17, 2022 at 8:46 am #655864
alawi sayed
- Topics: 138
- Replies: 149
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,
May 20, 2022 at 11:12 am #656068
P2-D2
Keymaster
- Topics: 4
- Replies: 6165
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
May 21, 2022 at 11:58 am #656130
alawi sayed
- Topics: 138
- Replies: 149
So where the depreciation of developments cost will go during the development phase.

Thanks Sir.
May 30, 2022 at 4:02 pm #656851
P2-D2
Keymaster
- Topics: 4
- Replies: 6165
The costs get capitalised instead of being expensed.

Thanks
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