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Hi sir mike, i jst want to knw abt research and most importantly development cost …what is development cost? .if we say that this is a cost to develop a product (tangible product), will it be right?,can u give me its easy example i always find it hard to understand development cost
I think development cost is associated with intangible asset. It is capitalised in the financial statement if it meets the recignituon criteria. One the criticAl recognition criteria is its technical feasibility.
IAS 39 relates to Research and development costs. The development stage of the R&D can only be capitalised if future cash flow growth can be achieved or the asset is going to be sold. The research stages can not be capitalised.
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