Lab Uni Berhad has the following development costs in the last 2 years: 2019: RM2,500,000 2020: RM7,000,000 In year 2019, the development cost was written off to the profit and loss statement because the capitalization criteria was not met. In year 2020, the company capitalized the cost. Choose the most CORRECT answer: Select one: O a. Since the recognition criteria was met in year 2020, in the current year, Lab Uni Berhad can reinstate the previously expensed development cost Ob. Lab Uni Berhad cannot reinstate the previously expensed development cost even though the capitalization criteria was met in 2020. C Fees to register a legal right to develop the project should not be capitalised in the year 2020

Lab Uni Berhad has the following development costs in the last 2 years: 2019: RM2,500,000 2020: RM7,000,000 In year 2019, the development cost was written off to the profit and loss statement because the capitalization criteria was not met. In year 2020, the company capitalized the cost. Choose the most CORRECT answer: Select one: O a. Since the recognition criteria was met in year 2020, in the current year, Lab Uni Berhad can reinstate the previously expensed development cost Ob. Lab Uni Berhad cannot reinstate the previously expensed development cost even though the capitalization criteria was met in 2020. C Fees to register a legal right to develop the project should not be capitalised in the year 2020

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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