CERTYNEX IFRS ACADEMY

On 1 June 20X1, Kestra demonstrates all the development-phase criteria for its new management software. Out of prudence, its finance director is considering continuing to expense subsequent development expenditure. Which statement is correct?

This is possible: capitalising development costs is an accounting policy option left to the entity.

Expenditure incurred from 1 June 20X1 must be capitalised.

Expenditure may be capitalised only from the first sale of the software.

All the project expenditure, including that incurred before 1 June 20X1, must be capitalised.