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costs in a development project are only capitalized once the development is completed. correct?
if yes, where are the costs stored while expenses are being recorded? in a prepayment account?
No, not correct. Costs are capitalised UNTIL the project is complete. Upon completion, no further costs are capitalised.
Research costs leading to the project satisfying the recognition criteria are written off as incurred.
Once the criteria have been satisfied, then the following development costs are capitalised until the project starts selling the goods that have been developed. At that point, no further costs are capitalised
Ok?
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