According to IAS 38 Intangible assets, which of the following statements about research anddevelopment expenditure are
correct?
1 Research expenditure, other than capital expenditure on research facilities, should be recognised as an expense as
incurred.
2 In deciding whether development expenditure qualifies to be recognised as an asset, it is necessary to consider whether
there will be adequate finance available to complete the project.
3 Development expenditure recognised as an asset must be amortised over a period not exceeding five years.