Question: Swinson Inc a private company that applies ASPE incurred 15 000
Swinson, Inc., a private company that applies ASPE, incurred $15,000 in materials and $12,000 in direct labour costs between January and March 2014 to develop a new product. In May 2014, the criteria required to capitalize development costs were met. A further $45,000 was spent for materials, $15,000 for direct labour costs, $2,000 for borrowing costs, and $72,000 for directly related legal fees. Discuss any options that may be available to Swinson for recording these expenditures. In addition, prepare the appropriate journal entries. How would your answer change if Swinson was a public company following IFRS?
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