Mention the costs that are not included in the cost of internally generated intangible assets.

CS Executive · Company Accounts & Auditing Practices · PYQS · December 2018
Mention the costs that are not included in the cost of internally generated intangible assets.

Answer & Explanation:

Costs not included in cost of internally generated intangibles assets: selling, administrative and other general overhead expenditure unless this expenditure can be directly attributed to making the asset ready for use; clearly identified inefficiencies and initial operating losses incurred before an asset achieves planned performance; and expenditure on training the staff to operate the asset.

Topics: Company Accounts

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