CERTYNEX IFRS ACADEMY

A controller reviews the year-end entries for a development project whose capitalisation criteria were first met during the year. Which of the proposed entries is an error?

Capitalising the expenditure incurred since the date the criteria were met.

Leaving the expenditure of the project's research phase in expense.

Reversing last year's expensed expenditure to recognise it as an asset.

None: the proposed entries all comply with IAS 38.