Following is the example of research activities as per AS 26 which is recognised as expense when it is incurred:

CA Intermediate · Advanced Accounting · RTP · May 2026
Following is the example of research activities as per AS 26 which is recognised as expense when it is incurred:
(A) the design, construction and testing of pre-production or pre-use prototypes and models.
(B) the search for alternatives for materials, devices, products, processes, systems or services.
(C) the design of tools, jigs, moulds and dies involving new technology.
(D) the design, construction and operation of a pilot plant that is not of a scale economically feasible for commercial production.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

the search for alternatives for materials, devices, products, processes, systems or services.

Topics: AS 2, AS 26, AS 13

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