In this paper, we will consider the accounting treatment of research and development expenses as operating expenses or intangible assets. The treatment of R&D activities has been a subject of particular controversy internationally. While there is general (but not universal) agreement that research does not give rise to intangible values that can be recognized as assets, there still a disagreement as to whether development may do so subject of to certain criteria. IFRS/IAS does not contain any specific regulations for the accounting treatment of R&D activities. Instead, the general regulations relating to reporting intangible assets are to be applied in this case. The ways of reporting intangible assets are dealt with in particular in the following standards: IAS 38 Intangible assets, IFRS 3 Business combinations, IAS 36 Impairment of assets.
