How Should Research and Development Costs Be Accounted For, According

question 5

Multiple Choice

How should research and development costs be accounted for, according to an IASB Statement?

• A) Must be capitalized when incurred and then amortized over their estimated useful lives.
• B) Must be expensed in the period incurred.
• C) May be either capitalized or expensed when incurred, depending upon the materiality of the amounts involved.
• D) Must be expensed in the period incurred unless it can be clearly demonstrated that the expenditure will have alternative future uses or unless contractually reimbursable.

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