Which Statement Is Correct

question 63

Multiple Choice

Which statement is correct?

• A)Under IFRS, research costs must fulfill six specific criteria.
• B)Under IFRS, all research costs must be expensed as incurred.
• C)Development activities must be technically feasible.
• D)Adequate financial resources must exist to complete research activities.

---

Definitions:

Income Tax Expense

The cost incurred by businesses or individuals due to earnings, calculated according to government tax rates and laws.

Pretax Financial Income

The income of a company before taxes have been deducted, commonly used in the context of reporting and financial analysis.

Permanent Difference

A difference between the book income and taxable income that will not reverse over time.

Product Warranty Costs

Expenses incurred by a company to repair, replace, or reimburse for products that fail to meet specified warranties.