Question: Can you please answer this question . thank you. Builders Supplies Ltd has undertaken a project to develop an online sales team. The project involves

 Can you please answer this question . thank you. Builders Supplies
Can you please answer this question . thank you.

Builders Supplies Ltd has undertaken a project to develop an online sales team. The project involves all sales representatives being equipped with: Computers that are linked to the company's inventory records for paperless placing and confirming of orders; and Hologram-projecting equipment which can project an accurate, detailed three- dimensional image of every stock item at the premises of customers. The costs incurred in the current period (2017) on this project were: computer equipment (life five years, zero residual value) $ 1,000,000 software development 380,000 consultant's fees (for implementation and testing) 620,000 The project has been successfully generated and is now in the process of being implemented. The project has a 'go-live' date of 1 August 2017. Builders Supplies Ltd is hoping to sell the technology to otier companies. Required: For the reporting period ended 30 June 2017, applying the provisions of AASB 138: a) Identify the amount of research recognised as an expense; b) Identify the amount of development recognised as an expense; and c) Identify the amount of development capitalised. Show all workings and fully justify all conclusions

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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 Accounting Questions!