(b) (i) Explain the matters you should consider to determine whether capitalised developme

(b) (i) Explain the matters you should consider to determine whether capitalised development costs are

appropriately recognised; and (5 marks)

(b) (i) MaterialityThe net book value of capitalised development costs represent 7% of total assets in 2007 (2006 – 7·7%), and istherefore material. The net book value has increased by 13%, a significant trend.The costs capitalised during the year amount