(a) Distinguish between research and development within the context of IAS38 Intangible Assets . (b) State, with...

Question:

(a) Distinguish between research and development within the context of IAS38 Intangible Assets.
(b) State, with reasons, how the following expenditure would be dealt with in the financial statements of Prebnez plc to conform with IAS38:
(i) Money spent on a joint project with a university investigating the potential use of carbon nanotubes for the storage of digital data.
(ii) Expenditure on developing a new high speed hard disk which, in the opinion of Prebnez plc, has an assured and profitable market. Work has been suspended pending the development of a new glue suitable for the construction of the disk drives.

Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

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