R&D caplitalize or expense

CFA Level II
#1

I have problem understanding the rule on this, can someone share some tips? Thx!

#2

GAAP - all R&D is expensed when incurred IFRS - R is expensed as incurred until commercial viability is determined, then D is capitalized

#3

dynamutt, GAAP and IFRS are the same Im pretty sure in this regard, once technological feasibility is established for something like internally developed software, then this amount is capitalized. R&D for prelimary stages is expensed as incurred.

#4

cheers, thanks for the correction. i think this is more of a L1 question anyway…