According to IAS 38 Intangible assets, which of the following statements concerning the accountingtreatment of research and development expenditure are true?
1 If certain criteria are met, research expenditure may be recognised as an asset.
2 Research expenditure, other than capital expenditure on research facilities, should be recognised as an expense as
incurred.
3 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.
4 Development expenditure recognised as an asset must be amortised over a period not exceeding five years.
5 The financial statements should disclose the total amount of research and development expenditure recognised as an
expense during the period.
