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During the year ending 31 December 20X1, Entity A invested £60,000 in research activities and £30,000 in development activities. The development costs meet the IAS 38 criteria for recognition as an intangible asset and Entity A amortises them on a straight-line basis over 10 years, with zero residual value.
What is the amount of amortisation charge in Entity A’s income statement for the year ending 31 December 20X1?
Tech plc invested £500,000 in building a customer database in 20X1. On 1 July of 20X2, Tech plc was acquired by BC plc and the fair value of the customer database at that time was £950,000.
Which statement is correct?
Investments in advertising are not recognised as intangible assets according to IAS 38.