Jackson Ltd is developing computer software for use in its courier delivery service business. So far the company has spent $50 000 but the software is still unfinished and is not expected to be finished in time for the preparation of the reports. As a result, the company has had to purchase a computer package costing $100 000 to finalise its accounts. There is no further use for the unfinished software that the company was developing as it is expected that the purchased computer package can be used by the entity for another 10 years. Which accounting treatment would be consistent with the Framework?
recognise an asset of $150 000
recognise an expense of $150 000
recognise an asset of $100 000 and an expense of $50 000
recognise an asset of $50 000 and an expense of $100 000
Recognise an asset of... View the full answer