CERTYNEX IFRS ACADEMY

The Cylvie laboratory has for two years been running an internal project whose exploratory and applied work is so intertwined that it cannot distinguish the two phases. Which of the following consequences are correct?

All the expenditure on the project is treated as incurred in the research phase.

The portion of expenditure incurred after a first prototype is built is capitalised.

The project expenditure is recognised as an expense when incurred.

If the phases later become distinguishable, the expenditure already expensed is reinstated in the cost of an intangible asset.

No intangible asset is recognised for the project expenditure incurred so far.

The expenditure is capitalised, then impaired at the reporting date if the project looks compromised.