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From course:

ACCA Paper F3/FA/FFA

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Question:

What are the criteria for development costs?

Author: Christy B.



Answer:

Probable inflow of economic benefits; Intention to complete the asset and use/sell it; Reliable measurement of development; Adequate financial resources; Technical feasibility to complete the asset; Expected to be profitable.


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Alternative answers:

They must: - Be able to measure the expenses in a reliable way - Be an identifiable product - Have the resources to complete development - Have an identifiable market