Subject : Accounting Theory

Beauty Cosmetics has spent $ 250,000 in 2020 on a project that plans to develop chemical-free cosmetic products. For now it is too early for Beauty Cosmetics to predict whether this project will be a commercial success. Describe whether Beauty Cosmetics should recognize the expenditure of $ 250,000 as an asset, of course, your answer refers to the conceptual framework regarding the definition of an asset and the criteria for recognition of the asset.