QUESTIONS 45 THROUGH 68 RELATE TO FINANCIAL STATEMENT ANALYSIS

61. A company, which prepares its financial statements in accordance with IFRS is in the process of

developing a more efficient production process for one of its primary products. The most

appropriate accounting treatment for those costs incurred in the project is to:

A. expense them as incurred.

B. capitalize costs directly related to the development.

C. expense costs until technical feasibility has been established.

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