alleryStart learning →Under AS 26, spending in the research phase of a project is:
AShown as a current asset
BExpensed when it is incurred
CCapitalised as an intangible
DDeferred and written off in 3 years
Answer & Solution
Correct answer: B. Expensed when it is incurred
In the research phase an enterprise cannot show that probable future benefits exist, so the outlay is charged to expense immediately.
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