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Hello, I have a question of IAS 38.
In the research stage, it occurs $10m for material, labour, overhead,…… But when it moves into the development stage, assuming that all conditions have been meet to be capitalised as intangible asset. So, all $10m from research stage is capitalised as intangible asset ?
Hope to obtain your explanation. Thanks tutor
Hi,
No, what has been previsouly expensed remains written off. It is only subsequent expenditure that is capitalised as development costs.
Thanks
Previous expenses in research stage is written off ?, you means that these expenses should be eliminated ?. You will adjust retrospectively ?
No, anything that has been written off remains written off. It is only subsequent expenditure that is capitalised once the criteria have been met.
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