CERTYNEX IFRS ACADEMY

Zelia separately acquired an in-process research and development project, recognised as an intangible asset. It then incurs 200,000 of work aimed at gaining new scientific knowledge on a still exploratory application. How is this expenditure recognised?

It is added to the carrying amount of the project, since the project is already an asset of Zelia

It is recognised as an expense

It is added to the carrying amount up to the price paid for the project

It is split between expense and asset in proportion to the share of the project already capitalised