I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

PART D: RECORDING TRANSACTIONS AND EVENTS 

 

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169 

C H A P T E R 

 

 

TOPIC LIST 

SYLLABUS 

REFERENCE 

1 Intangible 

assets 

D6(a),(b)

2  Research and development costs 

D6(c)–(f) 

3   Disclosure in financial statements 

F3(b)

 

Intangible non-current 

assets

Intangible non-current assets are long-term assets that have a 

value to the business because they have been paid for, but which 

do not have any physical substance. The most significant of such 

intangible assets are research and development costs. 

In many companies, especially those which produce food or 

'scientific' products, such as medicines and 'high technology' 

products, the expenditure on research and development (R&D) is 

considerable. When R&D is a large item of cost its accounting 

treatment may have a significant influence on the profits of a 

business and its statement of financial position valuation. Because 

of this, attempts have been made to standardise the treatment, 

and these are discussed in this chapter. 

 

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