Solution-Explain how the above expenditure should be treated

Explain how the above expenditure should be treated

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Question - Doge Ltd is developing a new production process. During 2020, expenditure incurred was $100,000, of which $90,000 was incurred before 1 December 2020 and $10,000 between 1 December 2020 and 31 December 2020. Doge Ltd can demonstrate that, at 1 December 2020, the production process met the criteria for recognition as an intangible asset. The recoverable amount of the know-how embodied in the process is estimated to be $50,000. Explain how the above expenditure should be treated in accordance with IAS 38 / AASB 138 Intangible Assets.

Reference no: EM132987907

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Explain how the above expenditure should be treated

Reference no: EM132987907

Reference no: EM132987907

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