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Development cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Development cost

  • This topic has 5 replies, 2 voices, and was last updated 3 years ago by P2-D2.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • May 13, 2022 at 2:39 pm #655550
    alawi sayed
    Participant
    • Topics: 301
    • Replies: 352
    • ☆☆☆☆

    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: 7163
    • ☆☆☆☆☆

    Hi,

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

    Thanks

    May 17, 2022 at 8:46 am #655864
    alawi sayed
    Participant
    • Topics: 301
    • Replies: 352
    • ☆☆☆☆

    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: 7163
    • ☆☆☆☆☆

    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
    Participant
    • Topics: 301
    • Replies: 352
    • ☆☆☆☆

    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: 7163
    • ☆☆☆☆☆

    The costs get capitalised instead of being expensed.

    Thanks

  • Author
    Posts
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