Is ind as 38 applicable to BS VI engine

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Student CA Final
23 Points Posted on 13 July 2020
One of our client is producing BS VI engines for their client so whether IND AS 38 is applicable to those and if yes whether it is to be treated as internal generated assets and classification should be done into research and development phase for capitalisatio
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On 13 July 2020 at 20:40 Report
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This discussion clarifies the applicability of IND AS 38 to BS VI engines. It confirms that custom-built BS VI engines fall under its scope due to significant research and development. Crucially, it highlights the need to differentiate between the research phase (expensed) and the development phase (capitalised) for accurate accounting.

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My grammar is 💯 good I
7306 Points Posted on 14 July 2020

Yes. The scope is appropriate because custom built engines do have considerable research and development. One must understand the difference between development and research phase because, research is expensed and development expenditure is capitalised. 

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On 14 July 2020 at 10:58
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Student CA Final
23 Points Posted on 14 July 2020
Thanks
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On 14 July 2020 at 11:00

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