Question

In: Accounting

1. Explain the difference between ‘research’ and ‘development’ in the context of AASB 138 Intangible Assets...

1. Explain the difference between ‘research’ and ‘development’ in the context of AASB 138 Intangible Assets without examples.

2. Discuss whether integrated reporting can enhance the current reporting requirements for intangible assets.

Solutions

Expert Solution

1.

Research:Research is the original and planned investiagtion undertaken with the prospect of gaining new scientific or technical knowledge and understanding.

Development:It is the application of several finding or other knowledge to a plan or design for the production of new or substantially improved material ,device ,product,process,system or service before the start of commercial production or use.

2.

Yes Integrated Reporting can enhance the current reporting requirements for intangible assets because

  • It improves the quality of information available to provides of financial capital which helps in efficent and productive allocation of intangible assets.
  • It enhaces the accountability for the broad base of intangible capitals and promote an understanding of their interdependence.
  • Integrated reporting supports Integrated thinking ,decision making ,actions which helps in value creation over time.
  • It promotes a more coheisve and efficient approach to corporate reporting which materially affects the organisation's ability to create value over time.   

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