State, with reason, how the following expenditure would be categorized to conform with IAS38. A Wine distillery has succ
Posted: Tue Jul 05, 2022 11:23 am
State, with reason, how the following expenditure would becategorized to conform with IAS38.
A Wine distillery has successfully designed and tested a newprocess to make high-quality distilled wine. The trial run of theprocess has been successful in the Napa Valley which recorded itshottest summer since the record began. The distillery has beenspent on $3 million dollars before the trial run on this process.The company has achieved the technical feasibility to complete thenew process, and it can complete the project and start using thisnew process to produce wines. It anticipates spending another $300on the legal costs and $2000 on the patent application andregistration that would be valid for 5 years.
A Wine distillery has successfully designed and tested a newprocess to make high-quality distilled wine. The trial run of theprocess has been successful in the Napa Valley which recorded itshottest summer since the record began. The distillery has beenspent on $3 million dollars before the trial run on this process.The company has achieved the technical feasibility to complete thenew process, and it can complete the project and start using thisnew process to produce wines. It anticipates spending another $300on the legal costs and $2000 on the patent application andregistration that would be valid for 5 years.