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French Co has incurred the following research and development expenditure in the financial year ended 30 Nov 2009.
Research expenditure 40000
Development expenditure on project A 100000
Development expenditure on project B 32000
Both project A and B meet the criteria for capitalization in IAS 38 Intangible assets.
Project A started commercial production on 1 Dec 2008 and has a life of four years.
Project B commenced in October 2009 and has not yet started production.What is the total charge to the SOPL for research and development expenditure in y/e 30 Nov 2009?
– 40000
– 72000
– 65000
– 172000How to solve this question? this is the purchased mock question, sir! that’s why I don’t have an exact answer.
If you have purchased the mock then you should automatically receive answers!!
Research expenditure is always charged as an expense in the SOPL.
Development expenditure is capitalised and depreciated in the normal way once production has started.
Thank you for answering, sir! The answer is $65000?
TBH, I didn’t purchase the mock question, just found it on one of the study websites for free but they didn’t put the answers along with the question:)
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