IAS 38 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Internally generated development: phases, criteria and cost
Internal development of planning software
Section 1 of 9
Objective
Section brief
- What to document
- The engagement, its scope and the working mode chosen.
- Why
- A workpaper answers one precise question: framing it avoids off-topic work.
- How
- Read the objective and the assignment, then choose the mode (guided, semi-guided, professional).
- Expected result
- You know which question the workpaper must settle, and for which reporting date.
- Your role
- Preparer of the IAS 38 workpaper
- Level
- Intermediate
- Estimated time
- ≈ 45 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Logistique Ardoise (a fictitious company) is developing in-house warehouse planning software for its own use. It closes its accounts on 31 December and does not revalue its intangible assets. In 20X0, it had already expensed preliminary studies on the project. You are preparing the accounting for the project for the 20X1 financial year.
Assignment
Workpaper Internal development project.
Purpose of the workpaper
Split the project costs between research and development, document the demonstration of the six criteria and the date retained, capitalise only the directly attributable costs incurred from that date (without reinstating prior expenses) and record the expenses, the capitalisation and the transfer on completion.
Questions of the file covered by this workpaper
- Which phases do you distinguish in the project, and from which date can costs be capitalised?
- Calculate the development amount to capitalise and the amount to expense in 20X1.
- Calculate the total research and development expense for 20X1, to be disclosed in the notes.
- Which entries do you record in 20X1?
Documents in the file
Open the documents to pick out the relevant information.