What activities are included in R&D? Which are excluded?
Identify the activities that are included and excluded in research and development.
Research and development costs: It refers to the expenditures spent on research, development, improvement or introduction of new products, processes, a new patent or even a copyright, that a company expects to get benefits. It is reported under the intangible asset in the balance sheet.
Identify the activities that are included and excluded in research and development as follows:
Activities included in the research and development:
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