Explain how to recognize research and development costs

Assignment Help Financial Accounting
Reference no: EM132600289

Anne Willows, the new accountant of Protea Limited, a pharmaceuticalcompany, is unsure about how to account for research and development costs. She believes that all associated research and development costs should be expensed as running costs of the business and that these costs will not always result in future economic benefits flowing to the company. However, the previous accountant had capitalised costs incurred on research and development as he felt that it added to Protea Limited's income generating structure and that this value would last for more than one period. Anne has asked you for advice on this matter.

Required:

Question 1: Write the memorandum to respond to Anne's query regarding how to recognize the research and development costs. Your discussion should include reference to both the Conceptual Framework and IAS 38 Intangible Assets.

Reference no: EM132600289

Questions Cloud

Compute the opportunity cost of producing food : Compute the opportunity cost of producing food instead of textiles. Similarly, compute the opportunity cost of producing textiles instead of food.
Compute the total intangible assets on the balance sheet : Compute the total intangible assets on the balance sheet of Anisha Enterprises.A factory machine was purchased for RM75,000.00 on January 1, 2018.
Safeguarding information and managing risks : Information Assurance (IA) is the practice of safeguarding information and managing risks related to the use, processing, storage,
Internship course experience : In paper based on your internship course experience and the learning objectives achieved during the course, review your internship experience successes
Explain how to recognize research and development costs : How do Write the memorandum to respond to Anne's query regarding how to recognize research and development costs. Your discussion should include reference
Demonstrate what is the size of the monthly payments : Compute What is the size of the monthly payments? Sean Paul borrowed $20 000.00 from his father to finance his new business. The loan agreement calls
How do make bank reconciliation for move inc at november : Prepare bank reconciliation for Move, Inc., at November 30. The ledger account for Cash showed a balance at November 30 of 6,750.
Compute what is the size of the monthly payments : Find What is the size of the monthly payments? The payments are deferred for 4 years and interest is 4.00% compounded semi-annually.
Make required journal entries to record teal mountain inc : Visage Cosmetics, a public company, Prepare the required journal entries to record the Teal Mountain Inc. investment assuming significant influence exists.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd