Question
Niche PJSC has one projects under development. During financial year ended 31 December 2018, the expenditure incurred was Dh30 million, of which Dh25 million was
Niche PJSC has one projects under development. During financial year ended 31 December 2018, the expenditure incurred was Dh30 million, of which Dh25 million was incurred before 1 September 2018, while the balance was incurred from September to December 2018.
Only on 1 September 2018, Niche Berhad was able to demonstrate that the project can meet all the recognition criteria as an intangible asset.
In 2019, the costs incurred was Dh10 million. The recoverable amount was Dh11 million on 31 December 2019.
Required:
Discuss the accounting treatment for the development cost and impairment loss (if any) for the project of Niche PJSC.
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