UNO Ltd acquired DUO Ltd on 25 June 2020. At the date of acquisition, DUO Ltd had a research and development project with a cost of $35,000. After the acquisition, UNO Ltd decides to continue the research and development project and incurs a cost of $20,000 for the project in the year ended 30 June 2021.

REQUIRED: 

Discuss how UNO Ltd should treat the cost of the research and development project at the acquisition date and after the acquisition date in accordance with AASB 138 Intangible Assets.

Answer rating: 100% (QA)

According to AASB 138 Intangible Assets the treatment of research and development RD costs depends o... View the full answer