Which of the following is not a criteria which must be met before development costs can be capitalized?
A) The company has sufficient financial resources to complete the project.
B) The company intends to complete the project and either use or sell the intangible asset.
C) The company can reliably identify the research costs incurred to bring the project to economic feasibility.
D) The project has achieved technical feasibility.

Question

Quizplus · Accepted Answer

The criteria for capitalizing development costs do not include the ability to reliably identify research costs incurred to bring the project to economic feasibility. Instead, capitalization criteria focus on financial resources, intent to complete and use or sell the asset, and technical feasibility.

Which of the Following Is Not a Criteria Which Must