CERTYNEX IFRS ACADEMY

Ardel has spent 300,000 on an internal project for a new composite material, without being able to distinguish, in its tracking, the work relating to research from that relating to development. How should these 300,000 be treated?

Recognise them as an expense when incurred, as research expenditure.

Capitalise half of them, for lack of a better allocation key between the two phases.

Capitalise them in full, since the project targets a material intended for sale.

Hold them in a suspense account until an allocation between the phases becomes possible.