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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Intangible assets
“There is a risk that some projects may not reach final development stage and hence should be expensed rather than capitalised”. What is meant by not reaching final development stage here ? The company expended 2 million on development of pharmaceutical products and some projects are suspected to not get completed..so they cant fully capitalise 2 million ..but why..these are capital expenses only no ..wht is final stage ?
If a developmeng project cannot be finished it will not produce revenue so what might have been an intangible asset is worthless so that expenditure has to be expensed rather than capitalised.