Which statement is correct?
A)Costs can continue to be capitalized in the post development phase.
B)The project must meet IAS 38 criteria before development costs can be capitalized.
C)The development phase includes generating new ideas or searching for new materials.
D)The research phase includes designing, constructing or testing a prototype.

Question

Quizplus · Accepted Answer

According to IAS 38, development costs can only be capitalized if certain criteria are met. Costs cannot be capitalized in the post development phase. The research phase includes generating new ideas or searching for new materials, while the development phase includes designing, constructing or testing a prototype.

Which Statement Is Correct