Final answer:
Under IFRS, money spent on a commercially feasible prototype would typically be capitalized as an intangible asset, if it adheres to specific IASB criteria. Development costs can then be amortized over the asset's useful life.
Step-by-step explanation:
Under IFRS, if a company spent money on the development of a commercially feasible prototype, then the cost would likely be capitalized as an intangible asset. This treatment is allowed if, and only if, the development cost meets certain criteria set out by the International Accounting Standards Board (IASB). Specifically, the expenditure must be able to demonstrate that the future economic benefits are probable, the company intends to finish the development and use or sell the asset, and the asset can be measured reliably.
Once capitalized, these development costs are typically amortized over the expected useful life of the corresponding asset. It is important to note that research costs are treated differently; they should always be expensed as incurred under IFRS.