IFRS requires that research be expensed but does permit capitalization of some development expenditures.

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

IFRS

A collection of accounting norms formulated by the International Accounting Standards Board (IASB), known as International Financial Reporting Standards, which are increasingly being adopted worldwide for the creation of financial statements for public companies.

Development Expenditures

Costs incurred in the research and development of new products or services, which are often capitalized and amortized over time.