Page 114 - Microsoft Word - 00 - Prelims.docx

Chapter 8

Disclosure requirements

The financial statements should disclose the following for capitalised development
costs:

 the amortisation method used and the expected period of amortisation

 a reconciliation of the carrying amounts at the beginning and end of the period,
showing new expenditure incurred, amortisation and amounts written off
because a project no longer qualifies for capitalisation, and

 amortisation charged during the period.

In addition, the financial statements should also disclose the total amount of research
and development expenditure recognised as an expense during the period.

Tutor notes guidance – discussion points

Bring the disclosure note from the end of chapter 9 up on screen to show to
students and talk through the key areas.

108