📈 CFA Exam Prep

Under IFRS, development costs can be:

A Always expensed
B Capitalized if certain criteria are met (technical feasibility, intent to complete, etc.)
C Never capitalized
D Recorded as revenue

✓ Correct Answer: Option B

IAS 38 allows capitalization of development costs when technical feasibility, intent, ability to use/sell, and future economic benefits are demonstrated.

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