Research & development

(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.

International 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.

US GAAP generally requires most research and development costs to be expensed, with exceptions including certain software expenditure.

See also

• Capitalise
• Development
• Expense
• FRS 102
• IAS 38
• Ideation
• Intangible assets
• Intellectual property
• International Financial Reporting Standards (IFRS)
• Proof of concept
• Research
• Reserve cash
• Software
• US GAAP