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Durian Bhd has taken the following activities during the financial year 2021. (a) Training of sales staff at a cost of RM50,000. Additional revenue as
Durian Bhd has taken the following activities during the financial year 2021. (a) Training of sales staff at a cost of RM50,000. Additional revenue as a result of training the staff to a higher level of skill is expected to be in the region of RM500,000. (4 marks) (b) Development of a new product. Total expenditure on development of the product has been RM800,000. All of the conditions for recognizing the development costs as an intangible asset have now been met. However, RM200,000 of the RM800,000 was spent before it became clear that the project was technically feasible and the developed product would be saleable and profitable. (6 marks) Required: Explain how the above amounts should be dealt with in the financial statements of Durian Bhd for the year 2021
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