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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Hig-Tech Co is a successful company in developing the video games. Due
to its popularity, the company decided to launch a new game to maintain its
competitive advantage over the competitors. On 30 September 2021, High -Tech
Co paid RM83,800 in developing new product and the costs identified as follows:
Cost of materials used
RM 80,000
RM 2,000
Fee to register a trade design
Amortisation of patent used
RM
500
Selling and administrative overheads allocated
Training costs to sales staff
RM
300
RM 1,000
Critically interpret the accounting treatment for the expenditure incurred in
relates to the accounting standard of IAS 38/MFRS 138 for the year ended of
2021.
а.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F567af97f-a9f3-469b-95c9-fdb7b61f1137%2F9c78c06d-a69a-420d-aaeb-959a569e8f68%2Fkx6o649_processed.png&w=3840&q=75)
Transcribed Image Text:Hig-Tech Co is a successful company in developing the video games. Due
to its popularity, the company decided to launch a new game to maintain its
competitive advantage over the competitors. On 30 September 2021, High -Tech
Co paid RM83,800 in developing new product and the costs identified as follows:
Cost of materials used
RM 80,000
RM 2,000
Fee to register a trade design
Amortisation of patent used
RM
500
Selling and administrative overheads allocated
Training costs to sales staff
RM
300
RM 1,000
Critically interpret the accounting treatment for the expenditure incurred in
relates to the accounting standard of IAS 38/MFRS 138 for the year ended of
2021.
а.
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