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NhyiraCapital Limited began research into the software it has used over a period. The software has been operational for the generation of economic benefits over the years. The company decided to research the development of the software. The company assigned four researchers who were paid R10,000 in total for the period of the research. Transportation and feeding costs incurred in carrying out the research amounted to R4,000. The company further acquired four tablets with research software for R25,000 each to enable them to ascertain accurate findings. The company's software is separately identified and has a commercial value. The research was completed and there is a need for developing the company's software. A development cost of R125,000 was reliably measured and incurred. The economic useful life of the software was estimated to be 10 years from the date of completing its development. Show how the software and its related expenses are to be capitalized in the financial statements under IAS 38.
Financial Statement Analysis and Preparation
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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
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