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
how do internal controls affect or improve the goals of a bussiness firm

I need a 5 schedules like the sample on the attachment please follow the Instructions you will see in the instructions attachments 4 companies and you have to choose 5th one by yo

IAS 40 Investment Properties - Audit Evidence Typical audit evidence might include: Physical verification of the situation and location of the investment property and c

Banks Features (a) Profit and loss account: When looking at a bank's profit and loss account the accountant should seek to discover what proportions of the bank's profits

methods of determining break even point

Role of Accountant The Accountant's Role Every year a lawyer who such handles client's money is used to created to the Law Society of US a report through a qualified accoun

Cost and Authorization - Auditing Process The cost of building and land acquired while the year should be vouched to suitable documentation.These are contract of sale, surveyo


list four assertions that relate to account balances

Examples of Liabilities Examples of those liabilities are: a) Claims by employees for injury at work such should be covered through workman's compensation; b) Claims thr