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The original international standard, IAS 9, on this specific intangible asset has been superseded as part of the development of IAS 38, which covers all intangible assets.
Research is defined as ‘original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding’. Development is defined as ‘application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services prior to the commencement of commercial production or use’ Development is more closely related to the earnings process than research...
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