Accounting-7624498 - $6,000 4. Legal fees to patent the...

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ANALYSIS OF COST S.NO PARTICULARS US GAAP IFRS 1. Internal R & D cost-Jan 2011 to June 2011 Not to be capitalized. Capitalization takes place only after establishing technical feasibility. Not to be capitalized. Capitalization takes place only after demonstrating technical feasibility. 2. Internal R & D cost- July 2011to August 2011 $80,000 (Since, the technical feasibility is established, the R & D cost should be capitalized.) Not to be capitalized. (Capitalization takes place only after demonstrating technical feasibility.) 3. Purchased Software $6,000
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Unformatted text preview: $6,000 4. Legal fees to patent the product $2,000 (Intangible assets include the legal fees.) $2, 000 (Intangible assets include the legal fees.) 5. Internal R & D cost- September 2011to December 2011 $2,50,000 (Since, the technical feasibility is established, the R & D cost should be capitalized.) $2,50,000 (Since, the technical feasibility is established, the R & D cost should be capitalized.) 6. Preproduction Cost $40,000 $40,000 7. Marketing Launch $25,000 $25,000 Total amount to be capitalised $4,03,000 $3,23,000...
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