How can you record research cost in accounts.

Connie975Connie975 Posts: 14subscriber Bronze Level Member
Hi guys,

I am a startup owner, who is looking to submit a proposal to a venture capital investor, I want to know, how will you record cost incurred in research. 

Comments

  • Tuah BaoTuah Bao Posts: 118subscriber Silver Level Member
    Research & Development (R&D) - You will need to record research cost as expense (on the Profit and Loss Statement). On the other hand, you may record development cost as an intangible asset (on the Balance Sheet) only if the following criteria are satisfied (else record it as an expense):

    1) separately identifiable
    2) commercially viable
    3) technically feasible
    4) Future economic benefit outweigh the cost

    You can get either read technical articles or search IFRS/IAS for guide.

    Tuah Bao
    Accountant & Marketing Consultant
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