Development costs are capitalized as an intangible asset when technical and economic feasibility of a project can be demonstrated.

Question

Quizplus · Accepted Answer

According to accounting standards such as IAS 38 (Intangible Assets), development costs can be capitalized as an intangible asset when an entity can demonstrate the technical feasibility of completing the asset so that it will be available for use or sale, and its intention and ability to complete the development and use or sell the asset, among other criteria.

Development Costs Are Capitalized as an Intangible Asset When Technical