CFA Mock Afternoon Q61: IFRS R&D cost

research, criteria, correct, advice

I’m confused with the ans explanation. It states that “IFRS R&D are expensed until certain criteria is met”
but from what i gathered from Schweser notes:
1. IFRS research: expensed
2. IFRS development: capitalized
3. s/w for sale before feasibility: expensed
4. s/w for sale after feasibility: capitalized
is my understanding correct ? pls advice. thanks !

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发表于 2013-4-2 11:30 | 只看该作者

Under IFRS, R&D for a project is expensed until the project is considered viable, or (in a way) self sustaining. In this case, if the production process is developed enough for the company to use, it can then capitalize.
If the project turned out to be not an efficient method, it could not capitalize the cost.

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