IFRS requires that research be expensed but does permit capitalization of some development expenditures.

Question

Quizplus · Accepted Answer

IFRS requires that research costs be expensed immediately. However, some development expenses can be capitalized and recognized as an asset on the balance sheet if certain criteria are met, such as the likelihood of future economic benefits from the development and the ability to measure the costs reliably.

IFRS Requires That Research Be Expensed but Does Permit Capitalization