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Organic Product Ltd has spent $650 000 this year on a project to develop a new range of chemical-free cosmetics. It is yet too early

Organic Product Ltd has spent $650 000 this year on a project to develop a new range of chemical-free cosmetics. It is yet too early for Organic Product Ltds management to be able to predict whether this project will prove to be commercially successful. Required: Explain whether Organic Product Ltd should recognise this expenditure as an asset, justifying your answer by reference to the AASB Conceptual Framework asset definition and recognition criteria. ~

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