assume that a company is spent 200,000 . this year on a project develop a new range of that cosmetics company but this company is spending €200,000 to develop a new range of green products (chemical free cosmetics) . it's just investing in the green product, so it's a new range of products actually. it's just very early for the company to be able to predict whether this project is going to be commercial, successful or not. just investing $200,000 in this project, but still not sure about the outcome of this project, so please in very brief sentences, explain whether this company's cosmetics company should recognize this expenditure as an asset.
assume that a company is spent 200,000 . this year on a project develop a new range of that cosmetics company but this company is spending €200,000 to develop a new range of green products (chemical free cosmetics) . it's just investing in the green product, so it's a new range of products actually. it's just very early for the company to be able to predict whether this project is going to be commercial, successful or not. just investing $200,000 in this project, but still not sure about the outcome of this project, so please in very brief sentences, explain whether this company's cosmetics company should recognize this expenditure as an asset.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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assume that a company is spent 200,000 . this year on a project develop a new range of that cosmetics company but this company is spending €200,000 to develop a new range of green products (chemical free cosmetics) . it's just investing in the green product, so it's a new range of products actually. it's just very early for the company to be able to predict whether this project is going to be commercial, successful or not. just investing $200,000 in this project, but still not sure about the outcome of this project, so please in very brief sentences, explain whether this company's cosmetics company should recognize this expenditure as an asset.
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