Under International Financial Reporting Standards,development expenditures are:
A)Expensed in the period incurred.
B)Expensed in the period they are determined to be unsuccessful.
C)Capitalized if certain criteria are met.
D)All of these answer choices are incorrect.

Question

Quizplus · Accepted Answer

Under International Financial Reporting Standards, development expenditures can be capitalized if they meet certain criteria, such as the feasibility of completing the intangible asset to be able to use or sell it, the intention to complete the project and use or sell the asset, and the ability to use or sell the asset. If these criteria are met, the expenses can be capitalized and amortized over the useful life of the asset. Therefore, choice C is the correct answer.

Under International Financial Reporting Standards,development Expenditures Are