Research
Research is original and planned investigation undertaken to gain new scientific or technical knowledge. At the research stage, the entity cannot yet demonstrate that an identifiable intangible asset will generate probable future benefits. Record the expenditure as an expense in the period incurred. Expenditure on a later development phase is assessed separately against its recognition criteria. Laboratory investigation into a new principle is an example of research before product feasibility is established.
Worked example
Early experiments to identify a possible new technology are research.
Common mistake
Research expenditure is expensed when incurred; do not assume it meets development recognition criteria.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| CIMA | F2 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
