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State the recognition criteria for an intangible asset. ii）Briefly explain the recognition criteria for the research and development costs. iii）

State the recognition criteria for an intangible asset. ii）Briefly explain the recognition criteria for the research and development costs. iii）

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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i）State the recognition criteria for an intangible asset.

ii）Briefly explain the recognition criteria for the research and development costs.

iii）

 

Healthy Hair Bhd is a manufacturer of medicated hair shampoo. During the year, the company developed a new product for the treatment of scalp psoriasis, called "PsoShampoo". Details of the expenditure incurred to 31 December 2021 were as follows: Date 1/1/2021 - 1/5/2021 1/6/2021 1/7/2021 1/9/2021 1/10/2021 Expenditure Feasibility study of the project Prototype (Trial product) Market testing and promotion through the distribution of flyers and free samples indicated the feasibility of the product Further development to refine the product RM 100,000 40,000 50,000 70,000
Transcribed Image Text:Healthy Hair Bhd is a manufacturer of medicated hair shampoo. During the year, the company developed a new product for the treatment of scalp psoriasis, called "PsoShampoo". Details of the expenditure incurred to 31 December 2021 were as follows: Date 1/1/2021 - 1/5/2021 1/6/2021 1/7/2021 1/9/2021 1/10/2021 Expenditure Feasibility study of the project Prototype (Trial product) Market testing and promotion through the distribution of flyers and free samples indicated the feasibility of the product Further development to refine the product RM 100,000 40,000 50,000 70,000
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