Aquarium Ltd has been developing specialised computer software for its own use. At the end of the

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Aquarium Ltd has been developing specialised computer software for its own use. At the end of the current reporting period, the company has spent $260 000 on the project. The final date for full implementation of the software is scheduled to be in six-months-time. However, the management accountant believes that the project will not be ready on time and that the company will have to acquire a commercial package instead, which will not be as efficient as the specialised software, but would be better than having no operational software at all. Others in the software department agree with her. In the financial statements, how should Aquarium Ltd account for the development costs of $260000? Why?

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Accounting

ISBN: 978-1118608227

9th edition

Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett

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