Entity A is an information technology company listed in Hong Kong. It provides inforamtion technology services to different types of customers. To prepare for the company development, Entity A planned to spend more expenditures on research and development in coming year. Entity A carries out a research and development project on 1 July 2021 called Plan X. In the year ended 30 June 2022, Entity A incurred costs in relation to Plan X of $98,654,000. These were incurred at the same amount each month up to April 2022, when Plan X was completed. Plan X had been confirmed as feasible on 1 November 2021. The product produced by Plan X went on sale on 1 June 2022. The product produced by Plan X was expected to have a useful life of 50 years. The end of the reporting period is 30 June. Amortisation is measured monthly.

REQUIRED: Measure the carrying amount of the development cost of Plan X on 30 June 2022.

Answer rating: 100% (QA)

To measure the carrying amount of the development cost of Plan X on June 30 2022 we need to consider ... View the full answer