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Hello sir , could you please verify if the answer for this question is $ 362 000 ?
Project Bear, a project to improve Polar production process, commenced on 10 January 2007. In the year ended 30 November 2007, the following costs have been incurred relating to Project Bear.
– Improvements and alterations to the production process $ 265000
-Initial feasibility study into the possibility of improving the production process $ 84650
– Materials used in testing the process before it started production $ 11900
The improved process started production on 1 November 2007, and has been a success.
The project meets the criteria for capitalization in IAS38 Accounting for research and development.. Polar’s accounting policy is to capitalize eligible development expenditure.
What amount should be capitalized as development expenditure in the year ended 30 November 2007?
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