Which TWO of these statements about research and development expenditure are correct under IFRS?

1. If certain conditions are satisfied, research and development expenditure must be capitalised.

2. One of the conditions to be satisfied if development expenditure is to be capitalised is that the technical feasibility of the project is reasonably assured.

3. The amount of capitalised development expenditure for each project should be reviewed each year. If circumstances no longer justify the capitalisation, the balance should be written off over a period not exceeding five years.

4. Development expenditure may only be capitalised if it can be shown that adequate resources will be available to finance the completion of the project.

Select one:

a. I dont know

b. None of the other answers is correct

c. II and IV are correct

d. I is correct

e. I and III are correct