What does this mean in English, please? Thanks.
QUOTE from NotAQuitter:
“Start-up costs are the costs to begin the operation of a business—usually the costs of capital assets, initial development of a market, and costs of production prior to the time that sales are achieved.
The accounting treatment for these costs is capitalization (as “start-up costs,” which are different from “organization costs”), provided there is a future benefit and recoverability of both the costs and amortization over a period of not less than 60 months.”
I'm still a little confused as “initial development of a market” does not have an estimated useful life…
P.S.
I'm glad that finally, I got all the intangibles and their RDs (under both US & IFRS), before and after technological feasibility studies till placing them for sale straight when to expense, capitalize, and charge them to COGS.
I hope to get these start-up and organization costs straight. These are just one of the easy 1-2 conceptual points on the actual test.
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