You must have Credits on your Balance to download this sample
"The requirements of IAS 38 in respect of Research and Development expenditure are theoretically dubious and practically unnec
Finance & Accounting
Pages 8 (2008 words)
Essay, Finance and Accounting Introduction The international accounting standard 38 (IAS 38) specifies the accounting rules for intangible assets that are not dealt with in other standards. The regulations specified under this standard are for entities to recognize an intangible asset only if certain criteria are fulfilled.
The entity intends to complete the intangible asset and thereafter, use and sell it. The entity has the ability to use or sell the asset. The entity can explain the ways of generating future economic benefits by means of these intangible assets. The entity has adequate financial, technical and other utilities and resources in order to use and sell the intangible asset. The entity can demonstrate its ability to determine and measure the expenditure that can be attributed to the intangible asset during its development (IFRS, 2012). However, in the recent past, the implementation of IAS 38 in respect of research and development expenditure has been under some sort of controversy. Leaders and researchers all around the world have regarded the implementation of IAS 38 in this field as being dubious and practically unnecessary. They believe that research and development expenditures should be treated as an expense and should be recorded in the income statement and its amounts should be disclosed in accordance with the accounts. This idea has formed the basis of research for this study and the following section will involve a critical evaluation of the idea explained above and its feasibility. ...
Not exactly what you need?