Acca financial Accounting (FA) Study Text ac ca (FA)

How should these costs be treated in the financial statements of 

Cowper Co for the year ended 31 December 20X5? 

A 

$60,000 should be capitalised as an intangible asset on the 

statement of financial position, with no amortisation charge 

B 

$40,000 should be capitalised as an intangible asset, with an 

amortisation charge also made, and $20,000 should be written off as 

an expense 

C 

$40,000 should be capitalised as an intangible asset and should not 

be amortised, and $20,000 should be written off as an expense 

D 

$60,000 should be written off as an expense 

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