alleryStart learning →If research and development cannot be told apart, spend is treated as:
ACapital work in progress
BDevelopment expenditure
CDeferred revenue spend
DResearch expenditure
Answer & Solution
Correct answer: D. Research expenditure
The prudent default treats the whole project as research, so the spend is expensed as incurred.
Keep practising AS 26 Intangible Assets
Browse all AS 26 Intangible Assets questions for CA Inter, or explore more Accounting topics.
Related questions
The cost of reorganising part of an enterprise is:Amortising an intangible over 25 years requires disclosing:Excess of enterprise market value over identifiable net assets is:Which of these is a common example of an intangible asset?Impairment of an intangible is tested by applying which standard?An exclusive 30 year toll road right is expected to be used 30 years. Amortise over:Software of Rs 9 lakh, 3 year life, straight-line, nil residual. Value after 2 years?A patent costing Rs 12 lakh has an 8 year life and no third-party buy-back commitment. Ann