How can you record research cost in accounts.

Connie975

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. 

Tuah Bao

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.