Welcome to 9-Zone an Exclusive place for Students & experts of Finance/C.Law like CA'S CWA'S CS'S MBA'S M.COM'S etc.
Menu holder.
Custom Search

A S – 8



THIS STANDARD IS WITHDRAWN FROM 01.04.2004 AND AS – 26 INTANGIBLE ASSETS BECAME MANDATORY. So, need not to study but want to know about research and development just look at below.



Treatment of cost of research and development in the financial statements



Research: Investigation undertaken with the hope of gaining new scientific or technical knowledge.



Development :Translation of research findings into a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services, prior to the commencement of commercial production

Cost of Research and development includes:

a. Salaries, wages & personnel.

b. Cost of material and services consumed.

c. Buildings, equipments and facilities used for R & D.

d. Reasonable allocation of overhead costs.

Treatment and disclosure requirements:


They should be charged as an expense of the period in which they are incurred and can be treated as deferred revenue expenditure.




Research and development costs once written off should not be reinstated even though the uncertainties that had led to their being written off no longer exist.


Disclosure requirements:

a. The total of research and development costs, including the amortized portion of deferred costs, charged as expense should be disclosed in the profit and loss Account for the period.


b. Deferred research and development expenditure should be separately disclosed in the Balance Sheet under the head "Miscellaneous Expenditure."





9-zone blog on news and updates.

Updates and latest news

Bookmark our RSS


Join our

Join Our Orkut Community

Follow us on Twitter

Follow us on Twitter