Intangible assets - part 3
Taught by James Griffiths · AI tutor support included
You'll learn how to account for research and development costs correctly by understanding when expenditure qualifies as a capitalised intangible asset versus an immediate expense.
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In this lesson
- 0:00 Introduction to intangible assets
- 2:26 Research and development recognition criteria
- 3:00 Capitalising development costs after feasibility
- 4:05 Accounting entries for R&D expenditure
- 5:25 Chapter summary and key takeaways
- 6:04 Worked example: Leslie's product development
- 7:57 Applying the six-point recognition test
- 8:53 Complete double entry solution
About this lesson
This video walks through a practical example showing how technical feasibility is the critical milestone that determines whether development costs can be capitalised on the statement of financial position, and when amortisation begins. You'll see exactly how to split costs between the research phase (expensed immediately) and the development phase (capitalised only after technical feasibility is confirmed), with the double entries needed to record both in your financial statements. This is essential for FR, SBR, and performance management papers where intangible asset recognition is regularly tested.
Duration: 11m
Transcript
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