The requirement of AASB 138 in relation to the amortisation of development cost is that:

Question

Quizplus · Accepted Answer

AASB 138 requires that development costs are amortised from the time the asset is available for use and shall reflect the consumption of the economic benefits by the entity. This is typically done using a systematic and rational approach, such as the straight-line method or another appropriate method, over the expected useful life of the asset. The period of amortisation should not exceed the period over which the entity expects to receive economic benefits from the asset. Therefore, options A, B, and C are incorrect. Option E is incorrect as there is an answer that satisfies the requirement of AASB 138.

The Requirement of AASB 138 in Relation to the Amortisation