When Research and Development Costs Are Incurred in the Expectation

Multiple Choice

When research and development costs are incurred in the expectation of future benefits but it is not possible,at the reporting date,to establish that it is probable that future economic benefits will eventuate,then:

A) the costs should be recognised as an asset
B) the costs should be recognised as expense together with estimated revenue
C) the costs should be recognised as expense prior to recognition of revenues
D) no action should be taken.