Which statement is correct?
A)Research is original or planned investigation to gather new knowledge or understanding.
B)Under IFRS all research costs can be either capitalized or expensed.
C)Research activities must be technically feasible as well as commercially viable.
D)Research is application of findings or knowledge towards new plans, designs or products.

Question

Quizplus · Accepted Answer

Research is defined as the process of original or planned investigation to gain new knowledge or understanding. Option B is incorrect because under IFRS, research costs are required to be expensed, except for development costs. Option C is partly correct but not complete as the requirement of technical and commercial feasibility is limited to development activities, not research. Option D is incorrect as it refers to development, not research.

Which Statement Is Correct