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What are the costs that are to be included in d...

What are the costs that are to be included in development as per AS 26?

What are the costs that are to be included in development as per AS 26?

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Jeeba Mar. 16, 2018

As per 'AS 26-Intangible Assets' cost incurred in development phase of a project can be treated as intangible assets if future economic benefits from assets are probable. This is because the development phase of a project is further advanced than the research phase.

The followings are the examples of development activities/costs:

  • Costs of the design, construction and testing of pre-production:
  • Costs of the design of tools, jigs, moulds and dies involving new technology;
  • Costs of the design, construction ad operation of a pilot plant that is not of a scale economically feasible for commercial production; and
  • Costs of the design, construction and testing of a chosen alternative for new or improved materials, devices, products, processes, systems or services.”

What are the costs that are to be included in development as per AS 26?

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