Delta Co has capitalised development costs brought forward of $420,000 at 1 January 20X9. These costs have a remaining useful life of four years.
During the year ended 31 December 20X9 the following expenditure has been incurred on project A:
$
Development costs
65,000
Research costs
22,000
All research and development was completed in July 20X9 on project A and Delta Co commenced production during the month. Delta Co applies IAS 38 Intangible Assets guidance on capitalisation of relevant costs. An amortisation period of four years is deemed appropriate. Delta Co's policy is to charge a full year's amortisation in the year of capitalisation of a project.
What should the total amortisation expense be for the year ended 31 December 20X9?
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Research and development
9y ago#1Please do not set test questions and expect an answer.
You must have an answer in the same book in which you found the question and so you should ask about whatever it is in the answer that you are not clear about. Then I will explain.
I assume of course that you have watched my free lectures on this? The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
hello there.. l think you add 65000 to the brought forward figure and the you divide it by the number of years.research is an expense.please correct me Sir if l am wrong
9y ago#3Correct :-)
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