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

Question

Quizplus · Accepted Answer

Capitalization of costs ceases when the post development phase begins, as costs are no longer considered to be directly attributable to bringing the asset to the condition necessary for it to be capable of operating in the manner intended by management.

Which Statement Is Correct