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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Q2c – June 2011
Hello
In this question, it was mentioned “The costs incurred in bringing the information about a certain region of the world to a higher standard of performance are capitalised.”
I am confused because if it is being capitalised then I’m thinking that it should have a certain lifetime period. However, the asset is an indefinite asset. Kindly explain.
Regards
Hi,
There isn’t anything within the question scenario that states that the asset has a finite life. I’d have thought the development of the map data, once completed, would last for as long as there is a need for people to use the information, hence an indefinite life.
Thanks