Answer: Assuming that the requirements to capitalise have been met, these costs would be treated as outlined below: expense $5,000 consultant fee as it was incurred in the research stage; expense $2,000 employee expenses as it was incurred in the research capitalise $3,000 employee expenses as it is directly attributable and was incurred in the development stage; capitalise $10,000 employee expenses as it is directly attributable and was incurred in the development stage; recognise as property, plant and equipment $5,000 under AASB 116; expense $500 as it is an operating expense incurred in the implementation stage; and expense $2,000 as it is an operating expense incurred in the implementation stage.
Answer: Assuming that the requirements to capitalise have been met, these costs would be treated as outlined below: expense $5,000 consultant fee as it was incurred in the research stage; expense $2,000 employee expenses as it was incurred in the research capitalise $3,000 employee expenses as it is directly attributable and was incurred in the development stage; capitalise $10,000 employee expenses as it is directly attributable and was incurred in the development stage; recognise as property, plant and equipment $5,000 under AASB 116; expense $500 as it is an operating expense incurred in the implementation stage; and expense $2,000 as it is an operating expense incurred in the implementation stage.
rmg-109-accounting-for-internally-developed-software.docx