CAF-6 · Chapter 12 · Question 12 of 15
Gamma Ltd acquires a patent. In addition to the purchase price, it incurs costs for training its staff to use the new patented process, and marketing costs to launch the new products. Which costs can be capitalized?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Only the purchase price.
Explanation
Directly attributable costs can be capitalized, but IAS 38 explicitly excludes staff training costs and marketing/promotional costs from the cost of an intangible asset.
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