anson Pharmaceuticals incurred the following costs in 2018 related to a new cancer drug: Investigation of new
Question:
anson Pharmaceuticals incurred the following costs in 2018 related to a new cancer drug:
Investigation of new formulas | ps | 2.495.000 | |
Development of a new formula. | 1,670,000 | ||
Legal and patent filing fees for the new formula | 67,000 | ||
Total | ps | 4,232,000 | |
Development costs were incurred after technological and commercial feasibility were established and after future economic benefits were deemed probable. The project was successfully completed and the new drug was patented before the end of fiscal year 2018.
Required:
1. Calculate the amount of research and development expenses Janson is required to report in its 2018 income statement related to this project.
2. Calculate the amount of research and development expenses Janson is required to report in its 2018 income statement related to this project. Assuming Janson prepares its financial statements in accordance with International Financial Reporting Standards.
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas