Balance sheet - doubt

Hi

 Can any one tell me, 


Can is " Research and Development" expenses Capitilized? 

How R&D expenses will be qualified? and who will be approving them? 

- Example: company is making research on a drug, they brought machines/ lab instruments and chemicals to test the drug, at certain point the drug is ready for markatability , so the machines and equipments which were booked in expenses now comes under plant and machinery / tools and implements and gets capitalized. 


                and, 


what is the impact if expenses moved to Balance sheet from Profit & Loss sheet?
- Profit will get increased with the sum transferred from P/L to balance sheet "assets" with a provision of depriciation available. 

Thanks in advance, 

Sai