SeeSaw Ltd is currently conducting research and development activities for a new product. During the financial...
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SeeSaw Ltd is currently conducting research and development activities for a new product. During the financial year, the entity incurred research and development costs amounting to $780 million. Of this total cost, 70% relates to research, while the balance relates to development. One-fifth of the amount recognised as development cost was incurred between July 1, 2021 to September 30, 2021. The product achieved technical, financial and commercial feasibility as at October 1, 2021. Similar intangible assets are amortised over ten years. Required: • Calculate the amount that would be capitalised as development cost. • Prepare the relevant financial statement extracts for the year ending December 31, 2021. SeeSaw Ltd is currently conducting research and development activities for a new product. During the financial year, the entity incurred research and development costs amounting to $780 million. Of this total cost, 70% relates to research, while the balance relates to development. One-fifth of the amount recognised as development cost was incurred between July 1, 2021 to September 30, 2021. The product achieved technical, financial and commercial feasibility as at October 1, 2021. Similar intangible assets are amortised over ten years. Required: • Calculate the amount that would be capitalised as development cost. • Prepare the relevant financial statement extracts for the year ending December 31, 2021.
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Answer rating: 100% (QA)
0 Total R D cost Date Page 780 million 30 je 234 x 1 5 XTRA the amount to ... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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