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Businesses have several costs and one among them is development cost. They are material cost for...

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Accounting

Businesses have several costs and one among them is developmentcost. They are material cost for companies which are eitherexpensed or capitalised as an asset. Required: Discuss theconceptual issues involved and the definition of an asset that maybe applied in determining whether development expenditure should betreated as an expense or an asset.

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Conceptual Issues Development costs are generally long term in nature If the cost of development incurred are recurring in nature then it will be treated as expense but if it is non recurring in nature and for future benefit and also increase the value of the    See Answer
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