Question: (a) Distinguish between research and development within the context of IAS38 Intangible Assets. (b) State, with reasons, how the following expenditure would be dealt with

(a) Distinguish between research and development within the context of IAS38 Intangible Assets.

(b) State, with reasons, how the following expenditure would be dealt with in the financial statements of Prebnez plc to conform with IAS38:

(i) Money spent on a joint project with a university investigating the potential use of carbon nanotubes for the storage of digital data.
(ii) Expenditure on developing a new high speed hard disk which, in the opinion of Prebnez plc, has an assured and profitable market. Work has been suspended pending the development of a new glue suitable for the construction of the disk drives. (CIPFA)

Step by Step Solution

★★★★★

3.32 Rating (179 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Research is the systematic investigation or study to discover or revise facts principles theories ... 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 International Financial Reporting 7th Questions!

9.17. The following probabilistic activity time estimates are for the network in Problem 9.6: Activity 1 2 3 4 LO 5 6 7 8 9 10 11 12 a 4 6 2 1 3 3 N o 5 7 L 3 Time Estimates (Months) Determine the...

(a) Distinguish between research and development within the context of IAS38 Intangible Assets . (b) State, with reasons, how the following expenditure would be dealt with in the financial statements...

Within the context of capital-budgeting decisions, what is meant by the term sensitivity analysis? What kinds of sensitivity analysis can be used to support the capital-budgeting process?

Within the context of a hospital, what makes such subunits as the emergency room and critical care units so powerful? Explain.

(a) Distinguish between research and development within the context of IAS38 Intangible Assets. (b) State, with reasons, how the following expenditure would be dealt with in the financial statements...

TELUS has a unique accounting policy for dealing with revenues in non-high serving areas. Review the accounting policy note as well as for details. Explain the business reason for the transaction and...

Assignment Task: You are required to conduct a literature search and critically review a costing system in this assignment. Part A Choose ONE of the costing systems studied in this unit from the list...

Styles Fraud Article - Take-A-Ways) (2 Points Each) - Fraud Article Uploaded Number Article Take-A-Way Example The most common reason that CFO's commit Financial Statement Fraud is they receive...

The following trial balance relates to Arthur at 31 December 2019: Dr Cr E 200,000 163,750 50.000 1.750 403,000 96,000 60,000 44,000 Ordinary share capital (50p/share) Retained Earnings at 1 January...

QUESTION 1 THE IMPACT OF CODES OF ETHICS AND EXPERIENCE ON AUDITOR JUDGMENTS The subject above highlights on investigating the impact of the presence of a code of ethics on the quality of auditors'...

Answer the following questions using the Delaware CAFR. Reference to the page number if possible. 1. Was the state organizational government chart provided? Briefly explain how the state is organized...

The wave functions for the three states with the dot plots shown in figure, which have n = 2, ? = 1, and m? = 0, +1, and ? 1, are in which the subscripts on ?(r, ?) give the values of the quantum...

Cycle-1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for October: Sales revenue (300 units @ $600 per unit) $180,000 Less Manufacturing...

4.12 If a dealers profit, in units of $5000, on a new automobile can be looked upon as a random variable X having the density function f(x) = 2(1 x), 0

When advertising can be linked directly to purchases, it is termed retail. When, and how, is image advertising justifiable?

A company's taxable total profits for the year to 31 March 2022 are 400,000. In the year to 31 March 2023, the company incurs a trading loss of 700,000 but has other taxable income and gains...

A company has the following results for its three most recent accounting periods: Assuming that all possible claims are made to relieve the trading loss against total profits, calculate the company's...

Which of the following statements is true? (a) Capital losses may be carried forward and relieved against future trading profits. (b) Trading losses may be carried forward for relief against future...

answer the questions on the basis of following ratios shown in the picture below 4. What is the overall market/economic trend over these three years? Are any of these companies outperforming the...

Problem 5 Based on the Capital Asset Pricing Model (CAPM) and the diagram below, what is the return of the stock if its beta is 1.2 or 0.8 ? Based on the Capital Asset Pricing Model (CAPM) and the...

Suppose AEC's stock has an expected return of 20% and a volatility of 40%, BF's stock has an expected return of 12% and a volatility (standard deviation) of 30%. Use Excel to calculate and record the...