Standard defines development and research, Auditing

Standard Defines Development and Research

The standard defines development and research as follows:

(a) Research - planned and original investigation undertaken along with the prospect of gaining new technical or scientific understanding and knowledge.

(b) Development - the application of research findings or other knowledge a design or plan for the generation of new or substantially improved products, materials, devices etc. prior to the commencement of commercial use or production.

  1. Research costs must be expensed in the duration whether they are incurred
  2. Enterprises costs must be expenses in the duration in which they are incurred

Enterprise must write off every development costs, they can demonstrate unless (a) to (f) below, whether case the cost must be recognized as an asset.

(a) The methodological feasibility of completing the intangible asset and need or sell it

(b)   The intention to complete the intangible asset and need or sell it

(c)   The ability to need or sell the intangible asset

(d)   How the intangible asset will produce probable future economic benefits.  Among other this, the enterprise should demonstrate the existence of a market for the production of the intangible asset pr the intangible asset itself or whether it is to be required internally the usefulness of the intangible asset.

(e) The availability of adequate financial, technical and other resources to entire the development and to require or sell the intangible asset,

(f) The ability to calculate the expenditure attributable to the intangible asset while its development reliably.

Posted Date: 1/25/2013 2:25:25 AM | Location : United States







Related Discussions:- Standard defines development and research, Assignment Help, Ask Question on Standard defines development and research, Get Answer, Expert's Help, Standard defines development and research Discussions

Write discussion on Standard defines development and research
Your posts are moderated
Related Questions
Plz assist me with these questions The auditors for Weston University are conducting their audit for the fiscal year ended December 31, 2011. Specifically, the audit firm is now

Audit Risk and Business Risk We saw in earlier studies that audit risk is often categorized as the product of inherent risk, control risk and detection risk. Auditors should

concept,need,advantage

#quInternal Audit checklist for fixed assetsestion..

Examination of Deeds Make Sure that the mortgage is in the name shown in the advance records; That there is a document of title to the property within mortgage and that

Recording the Audit - ISA 230 Purpose of working papers It is necessary which all audit work is documented - the working papers are the tangible evidence of the work co

Hi Dear, Could you please help me with online exam in Auditing Class !!

project report on absorption of overhead and its different method

Long Term Contracts - Audit Process The authoritative document with reference to long term contracts is IAS 11: Construction Contracts and IAS 18: Revenue Recognition, and ISA

Deferred Taxation - Audit Process Deferred Taxation results from the fact such the income tax department require different rules for calculating profits from those used throug