Illustration 1

QRS Ltd acquired a new technology that will revolutionize its current operating process. The costs are set out below:

Original cost of the new technology

Discount provided (@10%)

Staff training incurred in operating the new technology Testing of the new manufacturing process

Losses incurred whiles other parts of the plant stood idle

GHS 500,000

50,000 25,000 5,000 10,000

Required

Determine the amount to be capitalized as the cost of the intangible asset