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Hello sir please
1. Case A was started on 1.1.18 and met criteria on 31.8.18.2.Case B to investigate the properties of chemical compound.
3.Case C development project completed on 30.6.18.Related cost in SOFP at opening were $290000.production & sale of new product commenced 1 sep and expected to last 36 months.
Cost for the year 31.12.18
A $34000
B cost to 31 aug $ 78870
B cost from 31 aug $ 27800
C cost to 30 june $ 19800What amount is total expenses to SOPL?
please help me sir ,I was confusing in case B & C.
Hoping …Hi,
It looks like Case B is purely research and so all the expenditure incurred will be expensed through profit or loss.
For Case C the $19,800 would be capitalised and added to the $290,000 as development expenditure on the SFP. The total would then be amortised over the 36 months.
Thanks
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