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Minny purchased patents of RM10 million to use in a project to develop products 9, new on 1 December x11. Minny has completed the investigative
Minny purchased patents of RM10 million to use in a project to develop products 9, new on 1 December x11. Minny has completed the investigative phase of the project, incurring an additional cost of RM7 million and has determined that the product can be developed profitably. An effective and working prototype was created at a cost of RM4 million and in order to put the product into a condition for sale, a further RM3 million was spent. Finally, marketing costs of RM2 million were incurred. All of the above costs are included in the intangible assets of Minny. Required: Discuss the accounting treatment of each cost incurred. (Adapted from ACCA)
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