The National Accounting Council updates interpretation of I-40

The National Accounting Council (the "NAC") updates interpretation of I-40 Reporting of intangible results in research and development. The following sentence in paragraph 16 of I-40 was deleted: "Expenses on development should be either intangible long-term assets or they should be recorded in the profit or loss section if the activation conditions has not been met or if the accounting unit decides so."

Based on real life experience, the NAC has decided to delete the above stated sentence because its interpretation was often inconsistent or incorrect.