The accounting firm of Lassiter Black LLC.is preparing their year-end financial reports.The firm has incurred the following costs relating to work, which is not yet completed: $$\begin{array}{l}
\begin{array} { l r }
\text { Salaries } & \$ 2,700 \
\text { Travel expenses } & \$ 650
\end{array}\
\text { Printing and supplies } \quad \$ 350
\end{array}$$ Under IFRS, these costs should be charged to:

Question

The accounting firm of Lassiter Black LLC.is preparing their year-end financial reports.The firm has incurred the following costs relating to work, which is not yet completed: $$\begin{array}{l}
\begin{array} { l r } 
\text { Salaries } & \$ 2,700 \
\text { Travel expenses } & \$ 650
\end{array}\
\text { Printing and supplies } \quad \$ 350
\end{array}$$ Under IFRS, these costs should be charged to:

Quizplus · Accepted Answer

These costs are directly related to work that is not yet completed, so under IFRS, they should be classified as work in progress. This means they are capitalized on the balance sheet as assets until the work is completed, at which point the costs will be expensed.

The Accounting Firm of Lassiter Black LLC Under IFRS, These Costs Should Be Charged To: A)net Income

The Accounting Firm of Lassiter Black LLC Under IFRS, These Costs Should Be Charged To:
A)net Income