Revenue
31-03-10, 05:07 PM
hi
A Companies accounting year is 31 December 2009. Sales of a new product whose development costs totalled $500,000 began on 1 October 2009 and are expected to continue 5 years from that date. All IAS 38 criteria for defferal have been met in full. The cost of $500,000 includes new production plant costing $50.000
The correct answer is 427,500
Cost $500,000 - $50,000 = $450,000
Amortisation 450,000/60*3 = $22,500
Unamprtised expenditure = 450,000 - 22,500 = 427,500
i can not understand what is 60 means, how do they get it? :nah:
could somebody explain me
A Companies accounting year is 31 December 2009. Sales of a new product whose development costs totalled $500,000 began on 1 October 2009 and are expected to continue 5 years from that date. All IAS 38 criteria for defferal have been met in full. The cost of $500,000 includes new production plant costing $50.000
The correct answer is 427,500
Cost $500,000 - $50,000 = $450,000
Amortisation 450,000/60*3 = $22,500
Unamprtised expenditure = 450,000 - 22,500 = 427,500
i can not understand what is 60 means, how do they get it? :nah:
could somebody explain me