During its first year of operation,Dovery Company incurred $345,000 of research costs undertaken with the prospect of gaining new technical understanding about a new nanotechnology procedure.An additional $515,000 was incurred to develop a production process to use that new technology to produce a new lubricant product.Under IFRS,which of the following is the appropriate accounting for these costs?
A)capitalize $860,000 as an intangible asset
B)expense $345,000 and capitalize $515,000 as an intangible asset
C)expense $515,000 and capitalize $345,000 as an intangible asset
D)Any of these options can be appropriate under IFRS.

Question

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The Answer of During its first year of operation,Dovery Company incurred $345,000 of research costs undertaken with the prospect of gaining new technical understanding about a new nanotechnology procedure.An additional $515,000 was incurred to develop a production process to use that new technology to produce a new lubricant product.Under IFRS,which of the following is the appropriate accounting for these costs?
A)capitalize $860,000 as an intangible asset
B)expense $345,000 and capitalize $515,000 as an intangible asset
C)expense $515,000 and capitalize $345,000 as an intangible asset
D)Any of these options can be appropriate under IFRS.

During Its First Year of Operation,Dovery Company Incurred $345,000 of Research