Development costs Project AA (DH) BB (DH) CC (DH) 2009 300,000 280,000 50,000 2010 520,000 140,000 330,000 2011 375,000

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Development costs
Project
AA (DH)
BB (DH)
CC (DH)
2009
300,000
280,000
50,000
2010
520,000
140,000
330,000
2011
375,000
170,000
190,000
Project AA
DH200,000 of the development costsincurred in 2009 was for the period between 1 January 2009 until 31October 2009. Only from 1 November 2009, the company was able todemonstrate that the project can meet all the recognition criteriaas an intangible asset.
Project BB
All the development costs could becapitalised. In 2010, the product developed under this project wasmanufactured and ready for sale. Success Bhd expected the usefullife of the product to be indefinite. There was an active marketfor the intangible asset and at the end of 2011, there were activeoffers for the rights for DH500,000.
Project CC
The criteria for deferral continued tobe met since 2009. Estimates made for the financial year ended 31December 2011 were as follows:
Futurerevenue DH800,000
Further development cost to complete theproject DH200,000
Related production, selling and administrativecosts DH60,000
Required:
(ii) In respect of Project BB,discuss the appropriate accounting treatment for the developmentcosts in2011.
(iii) Calculate the amount of deferred development costs of Project CC atthe end of 2009, 2010 and 2011. Also, state the amount ofimpairment losses, if any.