Highveldt Co Q306 of Revision Kit

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January 17, 2021 at 9:43 am #606167
phuongmore
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Dear sir, please help me to explain about the adjustment of development cost when prepare Consolidation of SOFP at 31 mar 20×5 in Q306 of Revision Kit BPP. Subsidiary’s development project was completed on 30 sep 20×4 at a cost of 50 ml.10ml of this had been amortised by 31 mar 20×5.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 20×4.Thank you.
January 18, 2021 at 7:31 pm #607009
P2-D2
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Hi,

So what is it that you are specifically asking for help on within the question?

Thanks
February 13, 2021 at 1:28 pm #610250
phuongmore
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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
February 19, 2021 at 7:39 pm #610990
P2-D2
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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.

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