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  3. xyz limited incurred the following expenses on an

XYZ Limited incurred the following expenses on an internally developed production process, which will improve...

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Accounting

  1. XYZ Limited incurred the following expenses on an internally developed production process, which will improve the quality of goods produced.

KES (000)

Identification of alternative processes

100

Selection of best alternative

10

Technical feasibility

50

Raw material for pilot plant

10

Own labor cost of development

60

Trial run cost of pilot plant

20

Designing cost of process

30

Advertisement regarding improved process

100

Manufacturing of dies and tools

10

390

Required:

Calculate the cost of development to be recognized assuming the criteria for internally developed intangible asset under IAS 38 is satisfied? (10mks)

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