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Capitalizing R&D costs


We are doing some research on improving productivity of an equipment we sell. Can we capitalize the costs associated with this under IFRS?

asked Jan 13, 2013 in IAS 38 - Intangible Assets by anonymous
retagged Feb 16, 2013 by Vishan

1 Answer

0 votes
IAS38.53 states that no intangible asset arising from research shall be recognised, meaning all expenditure incurred on research shall be recognised as expense when it is incurred. this is due to the fact that it is usually impossible to demonstrate that an intangible asset exists that will  generate future economic benefits to the entity.

I hope it is clear.
answered Mar 20, 2015 by Fusion01 Level 3 Member (5,690 points)


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