Question
Hig-Tech Co is a successful company in developing the video games. Due to its popularity, the company decided to launch a new game to maintain
Hig-Tech Co is a successful company in developing the video games. Due to its popularity, the company decided to launch a new game to maintain its
competitive advantage over the competitors. On 30 September 2021, High -Tech Co paid RM83,800 in developing new product and the costs identified as follows:
Cost of materials used RM 80,000
Fee to register a trade design RM 2,000
Amortisation of patent used RM 500
Selling and administrative overheads allocated RM 300
Training costs to sales staff RM 1,000
a. Critically interpret the accounting treatment for the expenditure incurred in relates to the accounting standard of IAS 38/MFRS 138 for the year ended of 2021.
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