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Hi sir,
We know that if the non current asset is for sale, we recognise it as inverntory, not non current asset anymore.
with intangibel non-current assets it is said if development costs can be recognised as a non current intangible asset following criterias are met.
1) the technical feasibility of completing the intangible asset so that it will be available for use or SALE
2) its intention to complete the intangible asset and use or SELL it
In 2 sentence above the wordsaleconfuse my mind.Please explain, if intangibel asset is for sale, it is not recognised as inventory ?
An entity may well indulge in a project that requires extensive research
At the end of that research stage, the entity hopefully feels that they have a potential saleable product
So they start development and incur capitalisable expenditure … but only if the criteria of ‘marketability’ is satisfied
So, at this early stage, this item, this product, has satisfied the ‘certainty of marketability’ test
Does this not mean that, upon completion of the development stage and the product is now ready, sale is imminent?
Not really any time for transferring into inventory!
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