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GDB No: 01
HRSS Engineering Limited - a multinational company working in Pakistan is principally engaged in providing engineering and operational support services to its Pakistani customers and various European countries as well. It works for projects related to Energy, manufacturing, construction and plant maintenance. Company is enjoying strong market reputation owing to its excellent quality services and prompts responses towards its customers.
Recently, HRSS has received an order from one of its client Melto Ltd. (engaged in power sector) to develop a newly designed Heat Recovery Steam Generator. Before going into its manufacturing, HRSS has to conduct a laboratory research and build a prototype for Melto. Upon the successful demo, its commercial production would be started to execute the order.
To finance this Research & Development activity, HRSS incurred a total budget of Rs. 1.0 million. Following costs were incurred by the company in pursuance of its research and development:
1. Determine research cost incurred on the project. (0.50)
2. Determine development cost associated with the project. (0.50)
3. Which cost needs to be capitalized as per IAS 38? (0.50)
4. Give arguments in support of your answer in 3 above in the light of IAS 38. (0.50)
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yes coZ main b aysa kiya hai
3rd ka answer none of the cost are needs to capitalized
then apny kahan sy values likhi hain 3rd ki
O_o none? or development costs? :/
Mere khyal se, 3rd mein ayenga. Developments costs capitalized hongi.
2nd ma 700,000 ha yah 775,000
700000 and development cost will be capitalize
I think 775000
775000 he sahe answer hy :)