FINANCIAL ACCOUNTING Which of the following statements are true regarding the amorisation of development costs? 15. w A. Amortisation should be allocated on a systematic basis B. Amortisation should begin when the asset is brought into use C. Amortisation should be charged even if the asset is deemed to have an D. Amortisation should be charged on a straight ine basis indefinite iHe The capitalisation of development costs per IAS 38 is an application of which accounting concept? 16. A. Prudence 8. Accruals c. Materiality D. Consistency 17. Herbal Teas buys plant and machinery on 1 July 2004 for $ 1,200. At that date, it f nil. Herbal has an expected useful life of 10 years and expected residual value o depreciates plant and machinery on a proportionate basis. On 1 January 2009, Herbal sells the plant and machinery, making a profit on disposal of $1,000. Herbal Teas prepares accounts to 31 December each year. What were the proceeds from the sale? A. $340 B. $1,000 C. $1,660 D. $2,200 Charging depreciation in the financial statements in each accounting perlod is an application of which accounting concept? 18. A. Prudence B. Accruals C. Going concern