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Problem 1: An entity has recently completed a research and development project. Which of the following statements is accurate?
a) Costs incurred during the research phase can be capitalized
b) Costs incurred during the development phase can be capitalized if criteria such as technical feasibility of the project are met.
c) Training costs of technicians used in research can be capitalized
d) Designing of jigs and tools qualify as research activities
Problem 2: Which figure for earnings does EPS information use?
a) Profit attributable to ordinary equity holders and preference shareholders of the parent
b) Profit before taxation
c) Profit from operations
d) Profit attributable to ordinary equity holders of the parent
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