Question
Rive Rouge Confections Company incurred 5,000,000 to determine if chocolate could be made to resist melting by adding certain inert minerals to the mixture. According
Rive Rouge Confections Company incurred 5,000,000 to determine if chocolate could be made to resist melting by adding certain inert minerals to the mixture. According to IAS 38, how should Rive Rouge record this cost?
It should be capitalized as a deferred development cost.
It should be treated as a cost of products it currently markets.
It should be expensed currently.
It should be amortized over 20 years.
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Managerial Accounting Decision Making and Performance Management
Authors: Ray Proctor
4th edition
273764489, 978-0273764489
