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How can I define the Research and Development items as expenses and fixed assets?
How can I define the Research and Development items as expenses and fixed assets?
NOVA avatar
Written by NOVA
Updated over 3 years ago

In general, R&D expenses can be capitalised if the materials and fixed assets have been acquired that have alternative future uses, record them as assets. The materials should be charged to expense as consumed, while depreciation should be used to gradually reduce the carrying amount of the fixed assets. Conversely, if there are no alternative future uses, charge these costs to expense as incurred.

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