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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

QualificationExamRelationshipPeriod
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

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