Accounting Standard and Regulation

Running head: ACCOUNTING STANDARD AND REGULATION
ACCOUNTING STANDARD AND REGULATION
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1ACCOUNTING STANDARD AND REGULATION
Executive Summery
This paper is prepared to analyse the accounting policy used by the CSL Ltd. for the research
and development and the technology. The report also analyse the treatment made by the CSL
Ltd. for the different type of expenses associated with the technology assets and there
accounting treatments. Lastly, the report highlights the consequences of the financial report
of the firm and the importance of revealing the information of the technology assets.

2ACCOUNTING STANDARD AND REGULATION
Research and Development
The CSL Company is involve in the emerging innovations and support programs that
provides the opportunity to the firm to improve patient wellbeing in the entirely new way.
The involvement of the firm in the global research and development give the opportunity to
provide the excellence services and the products as per the requirements of their patients in
innovate way. As the main operation of the company is based on the innovation and the new
technology, the company incurred a huge amount in the research and development (Bond,
Govendir and Wells 2016). The large part of revenue of the firm is spent in the research and
development every years. The amount of expenditure in the research and development can be
ascertain from the annual report of the company. As per the annual report of the CSL
Company 2018, the company treated the research and development cost as expenditure when
incurred because there is always an uncertainty exist until the approval of the regulatory as
the research and development project will be the successful. As the project get the approval
then the entire amount of the research and development which was treated as the expenses
initially now transferred to the cost of development (Campbell, Jardine and McGlynn 2016).
The cost of purchasing of any intellectual property is also treated as the expenses until the
bought right demonstrated recoverable amount. As the rights start demonstrated the
recoverable then the amount that initially treated as the expenses is transferred to the
intangible assets.
While, as per the AASB 138, the technology assets can be recognised if and only if
there is the chances of the expected future monetary benefits of the asset will benefit the
company as well as the cost of the asset is determined properly. The firm can analyse the
probability of the future expected economic benefit of the asset by making the appropriate
assumptions that are best estimates of the set of economic conditions over the estimated