Research & development
From ACT Wiki
(R & D).
Discovering new knowledge about products, processes, services and applying this knowledge to create new and improved products, processes, and services to fulfill market needs.
The phases of a project generally include:
- (1) Research.
- (2) Development.
- (3) Commercial production or use of the new or improved items in the market.
Financial reporting standards generally require all research costs to be expensed.
Certain development costs are capitalised.
Relevant accounting standards include IAS 38 and Section 18 of FRS 102.
