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CalculationIntermediateVariant — group VG.IAS38.000403Published

Question · Development phase: recognition criteria

Arvea is developing energy management software and spends 30,000 on it per month throughout 20X1. It demonstrates all the development-phase criteria for the first time on 1 August 20X1. The period from January to July covers 7 months and the period from August to December 5 months. Calculate the amount capitalised and the amount recognised as an expense in 20X1.

Monthly development expenditure
30,000
Months before the criteria date
7
Months from the criteria date
5
Your answer

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