No it's not. Refer to IAS38 (I assume that you are using IFRS rather than UK GAAP).
Research costs are expensed as incurred
Development expenditure that meets certain the criteria is recognised as an intangible.
The criteria are important to memorise as they will in some form be part of a question in just about every sitting of F3, F7, F8, P2 and P7.
Note that this is one standard where the criteria are slightly different under UKGAAP and IFRS as there is more emphasis in the international standard on Use or Sell which is a wider definition than UK GAAP.
HTH,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I thought if research expenditure met certain criteria it became development expenditure which is the same thing as a capitalised development intangible asset.
but like you pointed out it is not worded that way in IAS38, so is there 3 types of expenditure? Research expense Development expense and Capitalised Development expense ?
Basically yes on the latter point, no(ish) on the first one.
Development is only capitalised as an intangible if it meets all of the criteria otherwise it is expensed.
Research (pure or applied) is always expensed as incurred.
When the reasearch becomes application of knowledge to the development process then from there forwards it actually becomes development expenditure so is capitalised from there forwards (if it meets the criteria) but the original research before the product was determed to be commercially viable must be expensed.
And on the matter of commercially viable is where SSAP13 and IAS38 start to part company over the development recognision criteria.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
