- 9 Marks
FR – Nov 2021 – L2 – Q6a – Property, Plant, and Equipment (IAS 16)
Explain research and development concepts and identify conditions for recognizing development costs as intangible assets.
Question
An internally-generated intangible asset is an asset created by a company through its own efforts and by its nature does not exist physically.
Required:
a. i. Explain the terms: Research and Development and state TWO examples each. (4 Marks)
ii. Development costs must be recognized as an intangible asset if only some conditions can be satisfied. Identify FIVE such conditions. (5 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Conditions for Recognition, Development, Intangible Assets, Research
- Level: Level 2
- Topic: Property, Plant, and Equipment (IAS 16)
- Series: NOV 2021
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