Manufacturing
Capitalizing Development Costs (Success)
Moving costs from the P&L to the Balance Sheet once a new product becomes commercially viable.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Capitalized Development (Intangible) | Asset (+) | 10,000.00 | - |
| R&D Expense (Reversal) | Expense (-) | - | 10,000.00 |
💡 Accountant's Note
Under IFRS (IAS 38), once a product reaches 'Technical Feasibility,' you stop expensing and start capitalizing.
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