Answered step by step
Verified Expert Solution
Question
1 Approved Answer
XYZ Limited incurred the following expenses on an internally developed production process, which will improve the quality of goods produced. KES (000) Identification of alternative
- XYZ Limited incurred the following expenses on an internally developed production process, which will improve the quality of goods produced.
|
| KES (000) |
| Identification of alternative processes | 100 |
| Selection of best alternative | 10 |
| Technical feasibility | 50 |
| Raw material for pilot plant | 10 |
| Own labor cost of development | 60 |
| Trial run cost of pilot plant | 20 |
| Designing cost of process | 30 |
| Advertisement regarding improved process | 100 |
| Manufacturing of dies and tools | 10 |
|
| 390 |
Required:
Calculate the cost of development to be recognized assuming the criteria for internally developed intangible asset under IAS 38 is satisfied? (10mks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started