ADVOKS GLOBAL · KENYA
Companies Act
490. Treatment of development costs
Edition: 2024-12-27 · In force
490. Treatment of development costs
(1)If development costs are shown or included as an asset in a company’s accounting records, any amount shown or included in respect of those costs is to be treated for the purposes of section 486 as a realised loss.(2)Subsection (1) does not apply to any part of that amount representing an unrealised profit made on revaluation of those costs.(3)Subsection (1) does not apply if—(a)there are special circumstances in the company's case justifying the directors in deciding that the amount there mentioned is not to be treated as required by subsection (1);(b)it is stated in the note required by regulations in force for the purposes of section 647 as to the reasons for showing development costs as an asset, that the amount is not to be so treated; and(c)the note explains the circumstances relied upon to justify the decision of the directors to that effect.