Question
On 1 August 20X8 Clark Co. commenced work on a project to develop a new production process. In the period to 31 December 20X8 Clark
On 1 August 20X8 Clark Co. commenced work on a project to develop a new production process. In the period to 31 December 20X8 Clark incurred internal expenditure of 300,000 on this project, this expenditure being incurred evenly over the period. On 1 November 20X8, an externally commissioned market research survey, which cost 35,000, proved to Clark that the new process had satisfied all six criteria for recognition of an intangible asset. During 20X9 further expenditure on the project amounted to 580,000, incurred evenly over the period. What intangible asset should be recognised in Clarks statement of financial position on 31 December 20X9 under IAS 38 Intangible Assets?
Select one: a. 700,000 b. 735,000 c. 880,000 d. 915,000
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