9911796707
TMI BlogResearch and development costsX X X X Extracts X X X X X X X X Extracts X X X X ..... oduct or service, and the presentation and disclosure in cost statements. 2. Objective The objective of this standard is to bring uniformity and consistency in the principles and methods of determining the Research, and Development Costs with reasonable accuracy and presentation of the same. 3. Scope This standard should be applied to cost statements that require classification, measurement, assignment, presentation and disclosure of Research, and Development Costs including those requiring attestation. 4. Definitions The following terms are being used in this standard with the meaning specified. 4.1 Abnormal cost: An unusual or atypical cost whose occurrence is usually irregular and unexpected and/ or due to some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comprise of indirect materials, indirect employee costs and indirect expenses which are not directly identifiable or allocable to a cost object. 4.11 Research and Development: 4.11.1 Research: Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding 7 . 4.11.2 Development: Development is the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services prior to the commencement of commercial production or use 8 . 5. Principles of Measurement 5.1 Research, and Development Costs shall include all the costs that ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenditure incurred for developing computer software 9. Costs incurred for the design of tools, jigs, moulds and dies 10. Other costs that can be directly attributed to Research, and Development activities and can be identified with specific projects. 5.2 Subsidy/Grant/Incentive or amount of similar nature received/receivable with respect to Research, and Development Activity, if any, shall be reduced from the cost of such Research, and Development Activity. 5.3 Any abnormal cost where it is material and quantifiable shall not form part of the Research, and Development Cost. 5.4 Fines, penalties, damages and similar levies paid t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he improved process or estimated period over which the improved product will be produced by the entity after the commencement of commercial production, as the case may be, if the improved process or product is distinctly different from the existing process or product and the product is marketed as a new product. The amount allocated to a particular period shall be included in the cost of production of that period. If the expenditure is only to improve the quality of the existing product or minor modifications in attributes, the principle shall not be applied. 6.5 Development costs attributable to a saleable service e.g providing technical know-how to outside parties shall be accumulated separately and treated as cost of providing the ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch, and Development cost. 8.2 Any change in the cost accounting principles and methods applied for the measurement and assignment of the Research, and Development cost during the period covered by the cost statement that has a material effect on the Research, and Development cost shall be disclosed. Where the effect of such change is not ascertainable wholly or partly the fact shall be indicated. 8.3 Disclosures shall be made only where material, significant and quantifiable. 8.4 Disclosures shall be made in the body of the Cost Statement or as a foot note or as a separate schedule. 9. Effective date: This Cost Accounting Standard shall be effective from the period commencing on or after 1st April 2014 for bei ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
