sonny247
May 10, 2007, 11:37 AM
Questions
Pecks provide pacakeges to mail orders and internet retailers. Pecks is the market leader in it sector and he his trying to keep ahead of the compition by researching in parckaging product.
There are expected to launch a new parkaging on to the market. The new product is expected to be commercialy viable and pecks have enough resources for the foreseable future.
Pecks as developed this product from original research that started 3 years ago. The research and development has three faces:
Phase 1- July 20x1 to may 20x2 pure research into possible new types of materials carried out by local university department at a cost of £75000.
Phase 2- June 20x2 to April 20x3 consultacy fee incurred for the investement of the commercial possibilities of the newly discovered materials. Fee incurred £192000.
Phase 3- June 20x3 to may 20x4 cost of developing the product and preparing for the product launch is £223000.
Requrement :
Explain how perks should treat Research and deveolpment cost in the financial statement for the year ended 31 may 20x2, 20x3 and 20x4. Your explanation should include reference to SSAP 13 or the relevant IAS.
Pecks provide pacakeges to mail orders and internet retailers. Pecks is the market leader in it sector and he his trying to keep ahead of the compition by researching in parckaging product.
There are expected to launch a new parkaging on to the market. The new product is expected to be commercialy viable and pecks have enough resources for the foreseable future.
Pecks as developed this product from original research that started 3 years ago. The research and development has three faces:
Phase 1- July 20x1 to may 20x2 pure research into possible new types of materials carried out by local university department at a cost of £75000.
Phase 2- June 20x2 to April 20x3 consultacy fee incurred for the investement of the commercial possibilities of the newly discovered materials. Fee incurred £192000.
Phase 3- June 20x3 to may 20x4 cost of developing the product and preparing for the product launch is £223000.
Requrement :
Explain how perks should treat Research and deveolpment cost in the financial statement for the year ended 31 may 20x2, 20x3 and 20x4. Your explanation should include reference to SSAP 13 or the relevant IAS.