Question: Aquarium Ltd has been developing specialised computer software for its own use. At the end of the current reporting period, the company has spent $260

Aquarium Ltd has been developing specialised computer software for its own use. At the end of the current reporting period, the company has spent $260 000 on the project. The final date for full implementation of the software is scheduled to be in six-months-time. However, the management accountant believes that the project will not be ready on time and that the company will have to acquire a commercial package instead, which will not be as efficient as the specialised software, but would be better than having no operational software at all. Others in the software department agree with her. In the financial statements, how should Aquarium Ltd account for the development costs of $260000? Why?

Step by Step Solution

★★★★★

3.40 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

For internally generated intangibles such as computer software the entity must determine whether the ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting Questions!

Delta Ltd has been developing a lightweight automated wheelchair. The research costs written off have been far greater than originally estimated and the equity and preference capital has been eroded...

Sam Ellis is worried. As president and CEO of Forward Software, Sam introduced a new spreadsheet product, Cinco, to the market last year. Forward Software has been developing and marketing...

Powersoft Company is engaged in developing computer software for the small business and home computer market. Most of the computer programmers are involved in developmental work designed to produce...

Aquarium Ltd has been developing specialised computer software for its own use. At the end of the current reporting period, the company has spent $$180$ 000 on the project. The final date for full...

Refer to the article in theassignment folder and answer the following question: In their evaluation of the IAS 15Standard titled ?Revenue from Contracts with Customers?, Bioni et al (2012)made the...

can any expert help me with the below assignment just only 2 questions ,please read the requirment word by word and be careful about the style of the reference(APA) , file 3.1 is for question...

just only 2 questions ,please read the requirment word by word and be careful about the style of the reference(APA) , file 3.1 is for question 2..BTW,please focus the every step FINANCE SPOTLIGHT...

Write a report for MYOB Group Limited, it should including: Budgets and Performance Measures 1. Look for your company's mission statement or statement that sets out the overall philosophy and...

ANSWER ALL THE QUESTIONS Question 1 Khaki & Sons Limited (KSL) is a family business that deals in car spare parts. It is one of the largest dealers in car spare parts in Uganda. Since inception in...

Please read carefully, all necessary information is attached, need to show work let me know if there is something missing. Microsoft word can be used thanks. You are Cindy, completing the analysis...

A gas turbine system operates with air entering at a velocity of 115 m/s and a density of 1.25 kg/m. The gas turbine inlet area is 0.05 m. Air leaves the turbine at a velocity of 135 m/s and a...

The expectations of most students myself included was misguided at best when first getting into accounting Can you address even a few specifics of things that have happened when GAAP was not followed

A new hospital is preparing to open. They want to ensure that data is entered in the correct format into the EHR to enable them to report national quality measures to The Joint Commission without any...

4. What recommendations would you make to Auchans management for the future of their global business? pg92

3) Differential model equation of a process given as follows: dt3d3y+5dt2d2y+8dtdy+4y=2dtdx+3x Since x(t) is the input variable and y(t) is the output variable, a) Specify the transfer function...

8 Cost of capital concepts Aa Aa Let's Play.Cash for Questions! Imagine that you are a contestant on a popular television quiz show, Cash for Questions. You are thrilled that the category is...

2. Suppose Cisco Systems, Corp. is expected to pay a dividend next year of $1.15 per share. Sales and profits are expected to grow at a rate of 15% for the following two years and then at 6% per year...