Release of capitalised development expenditure

Jan 18, 2016, 13:58 PM by User Not Found
Historically, development expenditure relating to the new e-Marker® examination software product has been capitalised on the balance sheet in accordance with the requirements of IAS38 ‘Intangible Assets’...

Historically, development expenditure relating to the new e-Marker® examination software product has been capitalised on the balance sheet in accordance with the requirements of IAS38 ‘Intangible Assets’. A year-end review has led the Group to conclude that under IAS38, the previously capitalised expenditure of £2,770,000 built up since May 2012 should be expensed to the Income Statement as the criteria for capitalisation are no longer met. The need to develop a broader set of features to meet market needs, combined with increasingly challenging international market conditions, have resulted in the deferral of projected annual revenue expectations which are used to support the carrying value of the asset, hence this resultant change in accounting treatment.

This change will result in future expenditure on development of the new e-Marker® product being charged to the Income Statement as it is incurred.

The Group remains committed to the development of its e-Marker® examination software products.

Enquiries:
Richard Cole, Company Secretary, 01908 666088

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