Which of the following need to be established before development costs may be capitalised?

1)A customer should have placed a firm order for the development of the product

2) The cost of the product should be reliably identified

3) The business should have all necessary resources to complete the project

4) The business should be committed to completing the development

Answers:

a) 1,2 and 4

b) 2 and 3

c) 2,3 and 4

d) 1,3 and 4