Acca financial Accounting (FA) Study Text ac ca (FA)

development expenditure should be treated in accordance with IAS 

38 Intangible Assets?

 

A 

Research and development expenditure must be written off to the 

statement of profit or loss as incurred 

B 

Research and development expenditure should be capitalised as an 

intangible asset on the statement of financial position 

C 

Research expenditure should be written off to the statement of profit 

or loss; development expenditure must be capitalised as an 

intangible asset provided that certain criteria are met 

D 

Research expenditure should be capitalised as an intangible asset 

provided that certain criteria are met; development expenditure 

should be written off to the statement of profit or loss 

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