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 !作者: ogoluwa 时间: 2013-4-2 11:30
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.作者: Mechanic 时间: 2013-4-2 11:30
That criteria is tech feasibility.
GAAP can also capitalize software when it is tech feasible.作者: studyn 时间: 2013-4-2 11:30
Does that mean for IFRS, R&D and software for sale treatment are the same ? i.e. both are expensed until feasibility is determined
