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When research and development costs are incurred in the expectation of future benefits, but it...

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Accounting

When research and development costs are incurred in the expectation of future benefits, but it is not possible, at the reporting date, to establish that it is probable that future economic benefits will eventuate, then:

Select one: a. no action should be taken. b. the costs should be recognised as an asset. c. the costs should be recognised as expense prior to recognition of revenues. d. there should be an estimation of the future cash flows of the project and this should be recognised as revenue. e. the costs should be recognised as expense together with estimated revenue.

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