Research and development
Research seeks new knowledge; development applies research or knowledge to a plan for new or substantially improved products or processes before commercial production. Keep records that distinguish the research stage from the development stage and support any claim that development criteria are met. Expenditure already recognised as an expense is not retrospectively reinstated merely because the project later succeeds. FA questions should be answered at the depth specified in the syllabus.
Worked example
Prototype design after feasibility is established may be development.
Common mistake
Research is expensed. Development is capitalised only once all IAS 38 recognition conditions are demonstrated; use the facts and dates provided and do not reinstate costs already expensed.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| ACCA | SBL | Supporting | September 2026–June 2027 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| CIMA | F2 | Direct | Official assessment-window verification pending |
| FIA | FBT | Direct | September 2026–June 2027 |
| FIA | FFA | Direct | September 2026–June 2027 |
