Dear sir, please help me to explain about the adjustment of development cost when prepare Consolidation of SOFP at 31 mar 20x5 in Q306 of Revision Kit BPP. Subsidiary's development project was completed on 30 sep 20x4 at a cost of 50 ml.10ml of this had been amortised by 31 mar 20x5.Development cost capitalized by S at the date of acquisition date were 18 ml.Development cost do not meet the creteria for recognition as an asset .Acquisition date is 1 apr 20x4.Thank you.
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Highveldt Co Q306 of Revision Kit
Hi,
So what is it that you are specifically asking for help on within the question?
Thanks
Dear sir, the answer is that: write off development cost (50-18)ml and write back amortised of development cost 10 ml.I do not understand.Plese help me to explain.Thank you
If the development costs do not meet the definition then we need to remove the 50 million that has been capitalised and the associated amortisation.
Thanks
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